ProFrac (NASDAQ:ACDC) Trading Up 9.4% - Here's Why

Key Points

• ProFrac stock rose 9.4% intraday to about $7.14 (high $7.20) on Tuesday, with roughly 327,783 shares traded — a 74% drop from its average daily volume.
• The company missed EPS expectations last quarter, reporting ($0.51) vs. the ($0.44) estimate while beating revenue at $436.5 million, and it remains unprofitable with a negative net margin (~-18.97%) and a forecasted -0.5 EPS for the year.
• Analyst sentiment is mixed-to-negative: consensus rating is "Reduce" with a $5.38 target, reflecting one Buy, three Hold and three Sell ratings (Morgan Stanley has an $4.00 target).

ProFrac Holding Corp. (NASDAQ:ACDC - Get Free Report)'s stock price was up 9.4% during trading on Tuesday . The company traded as high as $7.20 and last traded at $7.1420. Approximately 327,783 shares changed hands during mid-day trading, a decline of 74% from the average daily volume of 1,252,609 shares. The stock had previously closed at $6.53.

Analyst Ratings Changes

Several analysts have recently weighed in on ACDC shares. Zacks Research raised shares of ProFrac from a "strong sell" rating to a "hold" rating in a report on Wednesday, January 21st. Weiss Ratings reissued a "sell (d-)" rating on shares of ProFrac in a report on Monday, December 29th. UBS Group restated a "positive" rating on shares of ProFrac in a research report on Thursday. Finally, Morgan Stanley reaffirmed an "underweight" rating and set a $4.00 price target on shares of ProFrac in a report on Wednesday, January 21st. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and three have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $5.38.

ProFrac Stock Up 6.8%

The company has a current ratio of 0.91, a quick ratio of 0.63 and a debt-to-equity ratio of 0.96. The company has a market capitalization of $1.26 billion, a P/E ratio of -3.16 and a beta of 1.70. The firm's 50 day moving average price is $5.14 and its two-hundred day moving average price is $4.40.

ProFrac (NASDAQ:ACDC - Get Free Report) last announced its earnings results on Friday, March 13th. The company reported ($0.51) EPS for the quarter, missing the consensus estimate of ($0.44) by ($0.07). The business had revenue of $436.50 million for the quarter, compared to analyst estimates of $402.95 million. ProFrac had a negative return on equity of 31.70% and a negative net margin of 18.97%. Equities research analysts forecast that ProFrac Holding Corp. will post -0.5 EPS for the current year.

Hedge Funds Weigh In On ProFrac

A number of large investors have recently modified their holdings of the business. Alpine Global Management LLC acquired a new stake in shares of ProFrac in the fourth quarter valued at about $88,000. Invesco Ltd. boosted its position in ProFrac by 28.4% during the fourth quarter. Invesco Ltd. now owns 240,655 shares of the company's stock valued at $936,000 after purchasing an additional 53,210 shares during the last quarter. Mercer Global Advisors Inc. ADV boosted its position in ProFrac by 89.6% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 27,898 shares of the company's stock valued at $109,000 after purchasing an additional 13,187 shares during the last quarter. Empowered Funds LLC grew its stake in ProFrac by 9.6% in the fourth quarter. Empowered Funds LLC now owns 776,893 shares of the company's stock valued at $3,022,000 after purchasing an additional 67,939 shares in the last quarter. Finally, Wellington Management Group LLP grew its stake in ProFrac by 49.0% in the fourth quarter. Wellington Management Group LLP now owns 23,198 shares of the company's stock valued at $90,000 after purchasing an additional 7,624 shares in the last quarter. 12.75% of the stock is currently owned by institutional investors and hedge funds.

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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