ProPetro (NYSE:PUMP) Shares Gap Down on Disappointing Earnings

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.

Shares of ProPetro Holding Corp. (NYSE:PUMP - Get Free Report) gapped down before the market opened on Wednesday following a dissappointing earnings announcement. 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 traded.

The company reported ($0.07) EPS for the quarter, missing analysts' consensus estimates of $0.03 by ($0.10). ProPetro had a positive return on equity of 1.84% and a negative net margin of 11.10%. The firm had revenue of $326.15 million during the quarter, compared to analyst estimates of $331.26 million. During the same quarter in the prior year, the company posted ($0.03) EPS. The company's quarterly revenue was down 9.2% on a year-over-year basis.

Wall Street Analyst Weigh In

Several brokerages have commented on PUMP. JPMorgan Chase & Co. lowered their price target on ProPetro from $8.00 to $7.00 and set a "neutral" rating on the stock in a report on Wednesday, May 28th. Piper Sandler began coverage on ProPetro in a report on Monday, July 14th. They set a "neutral" rating and a $7.00 price target on the stock. Finally, Stifel Nicolaus set a $10.00 price target 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 assigned a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $9.00.

Institutional Investors Weigh In On ProPetro

Several hedge funds have recently modified their holdings of the business. MetLife Investment Management LLC boosted 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 acquiring an additional 1,270 shares during the period. Hsbc Holdings PLC boosted its position in shares of 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 acquiring an additional 1,675 shares during the period. Nisa Investment Advisors LLC boosted its position in shares of 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 acquiring an additional 1,990 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of 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 acquiring an additional 2,230 shares during the period. Finally, Sterling Capital Management LLC boosted its position in shares of ProPetro by 5.8% in the fourth quarter. Sterling Capital Management LLC now owns 46,415 shares of the company's stock valued at $433,000 after acquiring an additional 2,535 shares during the period. 84.70% of the stock is owned by institutional investors.

ProPetro Stock Down 5.0%

The company has a quick ratio of 1.39, a current ratio of 1.42 and a debt-to-equity ratio of 0.07. The company has a market capitalization of $528.90 million, a P/E ratio of -3.46 and a beta of 1.18. The firm has a 50-day moving average price of $6.04 and a two-hundred day moving average price of $6.82.

ProPetro Company Profile

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.