ProFrac (NASDAQ:ACDC) Trading 8.8% Higher - Should You Buy?

Key Points

• ProFrac Holding Corp. (NASDAQ: ACDC) shares rose 8.8% to $4.14 amid trading, despite a 77% drop in average session volume.
• Analysts have mixed opinions on ProFrac, with a consensus rating of "Strong Sell" and a projected price target of $5.80, following a string of downgrades.
• Insider activity includes major shareholder Holdings Lp Thrc buying 2.5 million shares for $10 million, increasing their stake by 3.13% in the company.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) traded up 8.8% during mid-day trading on Thursday . The company traded as high as $4.13 and last traded at $4.14. 228,576 shares changed hands during mid-day trading, a decline of 77% from the average session volume of 986,354 shares. The stock had previously closed at $3.80.

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the stock. Wall Street Zen lowered shares of ProFrac from a "hold" rating to a "sell" rating in a research report on Saturday, August 9th. Zacks Research raised shares of ProFrac from a "strong sell" rating to a "hold" rating in a research report on Monday, October 6th. Piper Sandler reduced their price target on shares of ProFrac from $6.00 to $5.00 and set a "neutral" rating for the company in a research report on Thursday, October 16th. Bank of America lowered shares of ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 price objective on the stock. in a research report on Wednesday, June 25th. Finally, Morgan Stanley set a $4.50 price objective on shares of ProFrac and gave the company an "underweight" rating in a research report on Friday, October 17th. Three investment analysts have rated the stock with a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Strong Sell" and a consensus price target of $5.80.

ProFrac Stock Performance

The stock has a market cap of $764.18 million, a P/E ratio of -2.43 and a beta of 1.61. The firm's 50-day moving average is $3.85 and its two-hundred day moving average is $5.75. The company has a quick ratio of 0.62, a current ratio of 0.91 and a debt-to-equity ratio of 1.00.

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

Insider Buying and Selling

In other news, major shareholder Holdings Lp Thrc purchased 2,500,000 shares of the company's stock in a transaction dated 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 transaction, 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 position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman Matthew Wilks purchased 43,297 shares of the company's stock in a transaction dated Monday, September 8th. The stock was purchased at an average cost of $3.80 per share, for a total transaction of $164,528.60. Following the transaction, the chairman owned 422,097 shares of the company's stock, valued at approximately $1,603,968.60. This trade represents a 11.43% increase in their ownership of the stock. The disclosure for this purchase can be found here. Company insiders own 2.84% of the company's stock.

Hedge Funds Weigh In On ProFrac

A number of institutional investors have recently modified their holdings of ACDC. EverSource Wealth Advisors LLC grew its stake in shares of ProFrac by 7,241.7% in the second quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock worth $27,000 after acquiring an additional 3,476 shares during the last quarter. Farther Finance Advisors LLC acquired a new stake in shares of ProFrac in the second quarter worth $29,000. Raymond James Financial Inc. acquired a new stake in shares of ProFrac in the second quarter worth $29,000. BNP Paribas Financial Markets grew its stake in shares of ProFrac by 389.4% in the second quarter. BNP Paribas Financial Markets now owns 6,122 shares of the company's stock worth $48,000 after acquiring an additional 4,871 shares during the last quarter. Finally, Deutsche Bank AG grew its stake in shares of ProFrac by 64.7% in the first quarter. Deutsche Bank AG now owns 14,680 shares of the company's stock worth $111,000 after acquiring an additional 5,767 shares during the last quarter. Institutional investors own 12.75% of the company's stock.

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.

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