Weiss Ratings Reiterates "Sell (D-)" Rating for ProFrac (NASDAQ:ACDC)

Key Points

• Weiss Ratings has reiterated a "Sell (D-)" rating for ProFrac (NASDAQ: ACDC), indicating ongoing concerns about the company's financial performance.
• ProFrac's stock price target has been adjusted downward by analysts, with Piper Sandler reducing it from $8.00 to $6.00 and Bank of America lowering it to $6.50.
• After reporting a loss of ($0.67) earnings per share for its most recent quarter, ProFrac missed analysts' expectations, contributing to its "Strong Sell" consensus rating.

ProFrac (NASDAQ:ACDC - Get Free Report)'s stock had its "sell (d-)" rating restated by stock analysts at Weiss Ratings in a report released on Wednesday,Weiss Ratings reports.

Other equities analysts have also recently issued reports about the company. Piper Sandler cut their price objective on ProFrac from $8.00 to $6.00 and set a "neutral" rating for the company in a report on Wednesday, August 20th. Bank of America cut ProFrac from a "neutral" rating to an "underperform" rating and set a $6.50 price objective for the company. in a report on Wednesday, June 25th. Wall Street Zen cut ProFrac from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, Zacks Research upgraded ProFrac from a "strong sell" rating to a "hold" rating in a report on Monday. Three equities research analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Strong Sell" and a consensus target price of $6.10.

ProFrac Stock Performance

Shares of NASDAQ:ACDC traded up $0.05 during midday trading on Wednesday, reaching $4.15. 907,452 shares of the company traded hands, compared to its average volume of 968,871. The company has a quick ratio of 0.62, a current ratio of 0.91 and a debt-to-equity ratio of 1.00. ProFrac has a 12 month low of $3.43 and a 12 month high of $10.70. The firm has a market capitalization of $742.97 million, a price-to-earnings ratio of -2.39 and a beta of 1.61. The firm's fifty day moving average price is $4.39 and its two-hundred day moving average price is $6.02.

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

Insider Buying and Selling at ProFrac

In related news, Chairman Matthew Wilks bought 43,297 shares of the stock in a transaction that occurred on Monday, September 8th. The shares were bought at an average cost of $3.80 per share, for a total transaction of $164,528.60. Following the completion of the transaction, the chairman owned 422,097 shares of the company's stock, valued at approximately $1,603,968.60. This trade represents a 11.43% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, major shareholder Holdings Lp Thrc acquired 2,500,000 shares of the stock in a transaction dated Thursday, August 14th. The stock was acquired at an average price of $4.00 per share, for a total transaction of $10,000,000.00. Following the completion of the transaction, the insider directly owned 82,389,657 shares of the company's stock, valued at approximately $329,558,628. This represents a 3.13% increase in their ownership of the stock. The disclosure for this purchase can be found here. 2.84% of the stock is currently owned by insiders.

Institutional Investors Weigh In On ProFrac

Several large investors have recently added to or reduced their stakes in ACDC. EverSource Wealth Advisors LLC grew its stake in shares of ProFrac by 7,241.7% during the second quarter. EverSource Wealth Advisors LLC now owns 3,524 shares of the company's stock valued at $27,000 after buying an additional 3,476 shares during the last quarter. Farther Finance Advisors LLC bought a new position in shares of ProFrac during the second quarter valued at approximately $29,000. Raymond James Financial Inc. bought a new position in shares of ProFrac during the second quarter valued at approximately $29,000. BNP Paribas Financial Markets grew its stake 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 valued at $48,000 after buying an additional 4,871 shares during the last quarter. Finally, Exchange Traded Concepts LLC grew its stake in shares of ProFrac by 1,258.8% during the first 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 during the last quarter. 12.75% of the stock is owned by institutional investors.

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.

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