ProPetro (NYSE:PUMP) Shares Gap Down After Earnings Miss

Key Points

• ProPetro Holding Corp. (NYSE:PUMP) shares fell sharply, opening at $5.08 after closing at $6.34, following a quarterly earnings miss of ($0.07) per share, which was below the consensus estimate of $0.04.
• Analyst ratings for ProPetro have been revised, with JPMorgan reducing its target price from $8.00 to $7.00, while Stifel Nicolaus maintains a buy rating with a price target of $10.00.
• Institutional investors own 84.70% of ProPetro's stock, with notable increases in holdings from American Century Companies Inc. and Philosophy Capital Management LLC during the first quarter.

ProPetro Holding Corp. (NYSE:PUMP - Get Free Report)'s stock price gapped down before the market opened on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $6.34, but opened at $5.08. ProPetro shares last traded at $5.28, with a volume of 1,887,486 shares.

The company reported ($0.07) earnings per share for the quarter, missing analysts' consensus estimates of $0.03 by ($0.10). ProPetro had a negative net margin of 11.10% and a positive return on equity of 1.84%. The company had revenue of $326.15 million during the quarter, compared to analyst estimates of $331.26 million. During the same period last year, the company earned ($0.03) EPS. The business's revenue for the quarter was down 9.2% compared to the same quarter last year.

Analyst Ratings Changes

A number of equities analysts have issued reports on PUMP shares. Piper Sandler assumed coverage on ProPetro in a report on Monday, July 14th. They set a "neutral" rating and a $7.00 target price for the company. JPMorgan Chase & Co. decreased their price objective on ProPetro from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Wednesday, May 28th. Finally, Stifel Nicolaus set a $10.00 price objective on ProPetro and gave the company a "buy" rating in a report on Wednesday, July 16th. Four investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $9.00.

Hedge Funds Weigh In On ProPetro

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. MetLife Investment Management LLC raised its position in shares of ProPetro by 2.5% in the fourth quarter. MetLife Investment Management LLC now owns 52,933 shares of the company's stock valued at $494,000 after buying an additional 1,270 shares in the last quarter. Hsbc Holdings PLC lifted its holdings in ProPetro by 3.5% in the first quarter. Hsbc Holdings PLC now owns 49,858 shares of the company's stock valued at $371,000 after buying an additional 1,675 shares during the period. Nisa Investment Advisors LLC lifted its holdings in ProPetro by 1.2% in the second quarter. Nisa Investment Advisors LLC now owns 163,394 shares of the company's stock valued at $975,000 after buying an additional 1,990 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in ProPetro by 4.5% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 51,534 shares of the company's stock valued at $379,000 after buying an additional 2,230 shares during the period. Finally, Sterling Capital Management LLC raised its holdings in shares of ProPetro by 5.8% during the fourth quarter. Sterling Capital Management LLC now owns 46,415 shares of the company's stock valued at $433,000 after purchasing an additional 2,535 shares during the period. Institutional investors own 84.70% of the company's stock.

ProPetro Stock Down 5.0%

The stock has a market cap of $529.21 million, a price-to-earnings ratio of -3.46 and a beta of 1.18. The company has a debt-to-equity ratio of 0.07, a current ratio of 1.42 and a quick ratio of 1.35. The firm's fifty day moving average price is $6.04 and its two-hundred day moving average price is $6.76.

About ProPetro

ProPetro Holding Corp. operates as an integrated oilfield services company. The company provides hydraulic fracturing, wireline, cementing, and other complementary oilfield completion services to upstream oil and gas companies in the Permian Basin. ProPetro Holding Corp. was founded in 2007 and is headquartered in Midland, Texas.