ProFrac (NASDAQ:ACDC) Trading Down 4% - Should You Sell?

Key Points

• ProFrac shares fell 4% in mid-day trading, sliding to as low as $5.21 after closing at $5.34, with volume well below average.
• Analyst sentiment remains cautious: the stock carries a consensus rating of “Reduce” and an average target price of $5.50, with recent reports including a Morgan Stanley $5.00 target and sell ratings from Weiss Ratings and Wall Street Zen.
• Latest results were mixed, as ProFrac missed EPS estimates last quarter despite beating revenue expectations, and the company continues to post negative margins and a weak balance sheet with a current ratio of 0.82 and debt-to-equity of 1.27.

Shares of ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) traded down 4% during mid-day trading on Wednesday . The stock traded as low as $5.21 and last traded at $5.1250. 98,642 shares changed hands during mid-day trading, a decline of 93% from the average session volume of 1,367,426 shares. The stock had previously closed at $5.34.

Wall Street Analyst Weigh In

ACDC has been the subject of a number of research analyst reports. Morgan Stanley set a $5.00 target price on shares of ProFrac in a research report on Wednesday. Piper Sandler raised their target price on ProFrac from $5.00 to $6.00 and gave the company a "neutral" rating in a report on Monday, May 18th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of ProFrac in a research report on Wednesday, June 24th. Finally, Wall Street Zen lowered shares of ProFrac from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Reduce" and an average target price of $5.50.

ProFrac Price Performance

The company has a current ratio of 0.82, a quick ratio of 0.58 and a debt-to-equity ratio of 1.27. The stock has a market cap of $858.47 million, a P/E ratio of -1.86 and a beta of 1.42. The company's fifty day simple moving average is $6.46 and its 200-day simple moving average is $5.86.

ProFrac (NASDAQ:ACDC - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported ($0.47) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.37) by ($0.10). The company had revenue of $449.60 million during the quarter, compared to analyst estimates of $426.39 million. ProFrac had a negative return on equity of 44.39% and a negative net margin of 24.25%. As a group, sell-side analysts forecast that ProFrac Holding Corp. will post -1.15 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of ACDC. Tudor Investment Corp ET AL acquired a new position in shares of ProFrac during the 3rd quarter worth about $2,377,000. JPMorgan Chase & Co. increased its holdings in shares of ProFrac by 125.8% in the third quarter. JPMorgan Chase & Co. now owns 228,477 shares of the company's stock worth $845,000 after acquiring an additional 127,286 shares in the last quarter. Walleye Capital LLC increased its holdings in shares of ProFrac by 328.6% in the first quarter. Walleye Capital LLC now owns 347,911 shares of the company's stock worth $2,157,000 after acquiring an additional 266,742 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of ProFrac by 156.5% during the first quarter. Dimensional Fund Advisors LP now owns 390,420 shares of the company's stock worth $2,421,000 after purchasing an additional 238,210 shares during the period. Finally, SG Americas Securities LLC bought a new position in shares of ProFrac during the 1st quarter valued at about $86,000. 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. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends.

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