ProFrac (NASDAQ:ACDC) Stock Price Down 7.2% - Should You Sell?

Key Points

• ProFrac shares fell 7.2% to approximately $4.73 in mid-day trading, with volume down 68% from the average session.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and a $5.50 target price, with ratings split among Buy, Hold, and Sell recommendations.
• Despite the decline, insiders bought about 800,000 shares worth $4.0 million over the past 90 days, while several institutional investors also increased their positions.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) traded down 7.2% during mid-day trading on Wednesday . The stock traded as low as $4.77 and last traded at $4.7250. Approximately 463,634 shares traded hands during mid-day trading, a decline of 68% from the average session volume of 1,444,701 shares. The stock had previously closed at $5.09.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on ACDC. Weiss Ratings reissued a "sell (d-)" rating on shares of ProFrac in a research note on Wednesday, June 24th. Piper Sandler upped their target price on ProFrac from $5.00 to $6.00 and gave the company a "neutral" rating in a research note on Monday, May 18th. Morgan Stanley set a $5.00 target price on ProFrac in a report on Wednesday, July 15th. Finally, Wall Street Zen raised ProFrac from a "sell" rating to a "hold" rating in a research report on Saturday. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, ProFrac presently has a consensus rating of "Reduce" and a consensus target price of $5.50.

ProFrac Stock Down 7.4%

The firm has a market cap of $858.53 million, a price-to-earnings ratio of -2.02 and a beta of 1.46. The company has a quick ratio of 0.59, a current ratio of 0.84 and a debt-to-equity ratio of 1.42. The firm has a fifty day moving average price of $5.21 and a 200-day moving average price of $5.91.

Insider Activity

In related news, major shareholder Dan H. Wilks acquired 202,331 shares of the company's stock in a transaction dated Tuesday, August 11th. The stock was bought at an average price of $5.44 per share, with a total value of $1,100,680.64. Following the purchase, the insider directly owned 87,500,195 shares in the company, valued at $476,001,060.80. The trade was a 0.23% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Matthew Wilks acquired 22,481 shares of the business's stock in a transaction dated Tuesday, August 11th. The shares were bought at an average price of $5.44 per share, for a total transaction of $122,296.64. Following the completion of the acquisition, the chief executive officer owned 502,097 shares in the company, valued at approximately $2,731,407.68. This trade represents a 4.69% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired a total of 800,000 shares of company stock valued at $4,018,391 in the last 90 days. 2.23% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in ACDC. AQR Capital Management LLC increased its stake in ProFrac by 61.7% during the fourth quarter. AQR Capital Management LLC now owns 1,638,822 shares of the company's stock worth $6,375,000 after acquiring an additional 625,596 shares during the last quarter. Hotchkis & Wiley Capital Management LLC grew its holdings in shares of ProFrac by 27.8% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 1,484,760 shares of the company's stock worth $5,494,000 after purchasing an additional 322,860 shares during the period. Bridgeway Capital Management LLC grew its holdings in shares of ProFrac by 2.8% during the 2nd quarter. Bridgeway Capital Management LLC now owns 1,199,562 shares of the company's stock worth $9,309,000 after purchasing an additional 32,382 shares during the period. Wells Fargo & Company MN increased its position in ProFrac by 12.1% during the 4th quarter. Wells Fargo & Company MN now owns 1,088,687 shares of the company's stock worth $4,235,000 after purchasing an additional 117,608 shares in the last quarter. Finally, Empowered Funds LLC increased its position in ProFrac by 9.6% during the 4th quarter. Empowered Funds LLC now owns 776,893 shares of the company's stock worth $3,022,000 after purchasing an additional 67,939 shares in the last quarter. 12.75% of the stock is owned by hedge funds and other institutional investors.

About ProFrac

ProFrac Holding Corp. operates as a technology-focused energy services holding company in the United States. It operates through three segments: Stimulation Services, Manufacturing, and Proppant Production. The company offers hydraulic fracturing, well stimulation, in-basin frac sand, and other completion services and complementary products and services to upstream oil and natural gas companies engaged in the exploration and production of unconventional oil and natural gas resources. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends.

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