ProFrac (NASDAQ:ACDC) Trading 8.7% Higher - What's Next?

Key Points

• ProFrac Holding Corp. saw an 8.7% increase in stock price during mid-day trading, reaching $3.94, with over 1 million shares traded, indicating heightened investor activity.
• Analysts have downgraded ProFrac, leading to a consensus rating of "Strong Sell" and an average price target of $6.10, highlighting concerns about the company's financial performance.
• Major insider purchases were reported, including 2.5 million shares bought by a major shareholder at an average price of $4.00, reflecting confidence in the stock despite recent downgrades.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) rose 8.7% during mid-day trading on Tuesday . The company traded as high as $4.02 and last traded at $3.94. Approximately 1,101,300 shares changed hands during mid-day trading, an increase of 18% from the average daily volume of 930,951 shares. The stock had previously closed at $3.62.

Analyst Ratings Changes

ACDC has been the subject of a number of research reports. Wall Street Zen cut ProFrac from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Bank of America downgraded ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 price objective on the stock. in a report on Wednesday, June 25th. Finally, Piper Sandler dropped their price objective on ProFrac from $8.00 to $6.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 20th. Two equities research analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat, ProFrac presently has a consensus rating of "Strong Sell" and an average target price of $6.10.

ProFrac Trading Up 0.6%

The company has a debt-to-equity ratio of 1.00, a current ratio of 0.91 and a quick ratio of 0.62. The firm's fifty day moving average is $5.28 and its 200-day moving average is $6.28. The firm has a market cap of $583.42 million, a price-to-earnings ratio of -2.09 and a beta of 1.65.

ProFrac (NASDAQ:ACDC - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported ($0.67) earnings per share for the quarter, missing analysts' consensus estimates of ($0.29) by ($0.38). ProFrac had a negative net margin of 12.89% and a negative return on equity of 22.78%. The company had revenue of $501.90 million for the quarter, compared to the consensus estimate of $532.93 million. Equities analysts anticipate that ProFrac Holding Corp. will post -0.5 earnings per share for the current year.

Insider Buying and Selling at ProFrac

In other ProFrac news, major shareholder Holdings Lp Thrc purchased 2,500,000 shares of the firm's stock in a transaction that occurred on Thursday, August 14th. The shares were bought at an average price of $4.00 per share, with a total value of $10,000,000.00. Following the completion of the purchase, the insider directly owned 82,389,657 shares in the company, valued at $329,558,628. This trade represents a 3.13% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Chairman Matthew Wilks purchased 43,297 shares of the firm's stock in a transaction on Monday, September 8th. The shares were purchased at an average cost of $3.80 per share, with a total value of $164,528.60. Following the completion of the transaction, the chairman owned 422,097 shares of the company's stock, valued at approximately $1,603,968.60. The trade was a 11.43% increase in their position. The disclosure for this purchase can be found here. 2.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ProFrac

Several large investors have recently modified their holdings of ACDC. Bridgeway Capital Management LLC increased its position in ProFrac by 10.6% during the 1st quarter. Bridgeway Capital Management LLC now owns 1,167,180 shares of the company's stock worth $8,859,000 after purchasing an additional 111,913 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in shares of ProFrac by 818.7% in the second quarter. JPMorgan Chase & Co. now owns 101,191 shares of the company's stock valued at $785,000 after buying an additional 90,176 shares during the period. GSA Capital Partners LLP acquired a new position in ProFrac during the first quarter valued at $548,000. First Trust Advisors LP acquired a new position in ProFrac in the 2nd quarter worth about $553,000. Finally, Ameriprise Financial Inc. increased its holdings in shares of ProFrac by 46.2% during the 2nd quarter. Ameriprise Financial Inc. now owns 217,375 shares of the company's stock valued at $1,687,000 after acquiring an additional 68,675 shares during the last quarter. Hedge funds and other institutional investors own 12.75% of the company's stock.

ProFrac Company Profile

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.

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