ProFrac (NASDAQ:ACDC) Trading Down 7.4% - Here's Why

Key Points

• ProFrac shares fell 7.4% on Thursday, trading as low as $4.69 after closing at $5.06, with volume coming in well below its daily average.
• Analysts remain cautious overall: ProFrac has an average rating of "Reduce" with a consensus price target of $5.50, while several firms have recently reiterated or downgraded the stock.
• The company’s latest earnings missed expectations, reporting EPS of -$0.47 versus the expected -$0.37, even though revenue of $449.6 million topped estimates.

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report) fell 7.4% on Thursday . The stock traded as low as $4.69 and last traded at $4.6860. 624,246 shares were traded during trading, a decline of 54% from the average daily volume of 1,361,959 shares. The stock had previously closed at $5.06.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the stock. Morgan Stanley set a $5.00 target price on ProFrac in a research note on Wednesday, July 15th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of ProFrac in a research note on Wednesday, June 24th. Piper Sandler increased their price target on ProFrac from $5.00 to $6.00 and gave the stock a "neutral" rating in a report on Monday, May 18th. Finally, Wall Street Zen cut ProFrac from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $5.50.

ProFrac Stock Performance

The stock has a market cap of $816.85 million, a price-to-earnings ratio of -1.76 and a beta of 1.42. The company's fifty day simple moving average is $6.22 and its two-hundred day simple moving average is $5.91. The company has a debt-to-equity ratio of 1.27, a current ratio of 0.82 and a quick ratio of 0.58.

ProFrac (NASDAQ:ACDC - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported ($0.47) EPS for the quarter, missing the consensus estimate of ($0.37) by ($0.10). ProFrac had a negative return on equity of 44.39% and a negative net margin of 24.25%.The business had revenue of $449.60 million for the quarter, compared to the consensus estimate of $426.39 million. On average, analysts forecast that ProFrac Holding Corp. will post -1.16 earnings per share for the current year.

Institutional Trading of ProFrac

Institutional investors and hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC boosted its position in shares of ProFrac by 61.7% during the fourth quarter. AQR Capital Management LLC now owns 1,638,822 shares of the company's stock valued at $6,375,000 after buying an additional 625,596 shares during the last quarter. Hotchkis & Wiley Capital Management LLC raised its position in ProFrac by 27.8% in the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 1,484,760 shares of the company's stock valued at $5,494,000 after buying an additional 322,860 shares during the last quarter. Bridgeway Capital Management LLC lifted its stake in ProFrac by 2.8% during the 2nd quarter. Bridgeway Capital Management LLC now owns 1,199,562 shares of the company's stock valued at $9,309,000 after acquiring an additional 32,382 shares in the last quarter. Wells Fargo & Company MN lifted its stake in ProFrac by 12.1% during the 4th quarter. Wells Fargo & Company MN now owns 1,088,687 shares of the company's stock valued at $4,235,000 after acquiring an additional 117,608 shares in the last quarter. Finally, Empowered Funds LLC boosted its holdings 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 acquiring an additional 67,939 shares during the last quarter. 12.75% of the stock is owned by hedge funds and other institutional investors.

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. It also manufactures and sells high horsepower pumps, valves, piping, swivels, large-bore manifold systems, and fluid ends.

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