ProFrac (NASDAQ:ACDC) Stock Price Down 4.8% - Should You Sell?

Key Points

• ProFrac Holding Corp. shares fell 4.8% mid-day on Wednesday, trading as low as $3.68, marking an 8% decrease in session volume compared to the average.
• Analysts have downgraded ProFrac's stock ratings, with Bank of America reducing their rating from "neutral" to "underperform" and a consensus target price set at $6.10.
• The company reported a loss of $0.67 EPS for the most recent quarter, missing estimates and showing significant negative margins and return on equity.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) fell 4.8% on Wednesday . The company traded as low as $3.69 and last traded at $3.68. 837,352 shares were traded during mid-day trading, a decline of 8% from the average session volume of 908,890 shares. The stock had previously closed at $3.87.

Analyst Upgrades and Downgrades

ACDC has been the topic of several research analyst reports. Bank of America downgraded shares of ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 price objective on the stock. in a research note on Wednesday, June 25th. Wall Street Zen lowered shares of ProFrac from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, Piper Sandler dropped their price target 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 analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, ProFrac presently has a consensus rating of "Strong Sell" and an average price target of $6.10.

ProFrac Stock Performance

The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.62 and a current ratio of 0.91. The company's 50 day simple moving average is $5.37 and its 200 day simple moving average is $6.31. The stock has a market cap of $575.41 million, a PE ratio of -2.06 and a beta of 1.65.

ProFrac (NASDAQ:ACDC - Get Free Report) last issued its quarterly earnings data on Thursday, August 7th. The company reported ($0.67) EPS for the quarter, missing the consensus estimate 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 firm had revenue of $501.90 million for the quarter, compared to analysts' expectations of $532.93 million. Analysts expect that ProFrac Holding Corp. will post -0.5 earnings per share for the current year.

Insider Activity

In other news, Chairman Matthew Wilks bought 43,297 shares of the stock in a transaction dated Monday, September 8th. The stock was bought at an average price of $3.80 per share, for a total transaction of $164,528.60. Following the purchase, the chairman directly owned 422,097 shares in the company, valued at $1,603,968.60. This trade represents a 11.43% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, major shareholder Holdings Lp Thrc purchased 2,500,000 shares of the stock in a transaction dated Thursday, August 14th. The stock was bought at an average cost of $4.00 per share, with a total value of $10,000,000.00. Following the transaction, the insider owned 82,389,657 shares in the company, valued at $329,558,628. The trade was a 3.13% 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

Large investors have recently bought and sold shares of the business. EverSource Wealth Advisors LLC lifted its holdings in shares of ProFrac by 7,241.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock worth $27,000 after buying an additional 3,476 shares during the period. Farther Finance Advisors LLC bought a new position in shares of ProFrac during the 2nd quarter worth approximately $29,000. Raymond James Financial Inc. acquired a new position in shares of ProFrac during the second quarter worth $29,000. BNP Paribas Financial Markets increased its position in shares of ProFrac by 389.4% during the second quarter. BNP Paribas Financial Markets now owns 6,122 shares of the company's stock worth $48,000 after purchasing an additional 4,871 shares in the last quarter. Finally, Exchange Traded Concepts LLC increased its position in ProFrac by 1,258.8% during the 1st quarter. Exchange Traded Concepts LLC now owns 10,164 shares of the company's stock valued at $77,000 after buying an additional 9,416 shares in 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.