Morgan Stanley Downgrades ProFrac (NASDAQ:ACDC) to Underweight

ProFrac (NASDAQ:ACDC) was downgraded by analysts at Morgan Stanley from an “equal weight” rating to an “underweight” rating in a report issued on Thursday, FinViz reports. They presently have a $6.50 price objective on the stock, down from their previous price objective of $7.00. Morgan Stanley’s price objective suggests a potential downside of 6.61% from the company’s previous close.

Other equities research analysts also recently issued research reports about the company. Bank of America reaffirmed a “hold” rating and set a $7.50 price target on shares of ProFrac in a report on Monday. Stifel Nicolaus cut ProFrac from a “buy” rating to a “hold” rating and set a $7.00 price target for the company. in a research note on Friday, October 11th. Finally, Piper Sandler cut their target price on shares of ProFrac from $11.00 to $9.00 and set an “overweight” rating on the stock in a research report on Monday, July 15th.

ProFrac Stock Performance

Shares of ProFrac stock opened at $6.96 on Thursday. The firm has a market cap of $1.11 billion, a price-to-earnings ratio of -7.48 and a beta of 0.81. The stock’s 50-day moving average is $6.63 and its 200-day moving average is $7.61. The company has a debt-to-equity ratio of 0.85, a current ratio of 1.01 and a quick ratio of 0.64. ProFrac has a one year low of $5.59 and a one year high of $10.14.

ProFrac (NASDAQ:ACDC) last issued its quarterly earnings results on Friday, August 9th. The company reported $0.02 EPS for the quarter, missing the consensus estimate of $0.14 by ($0.12). The business had revenue of $579.40 million for the quarter, compared to the consensus estimate of $624.64 million. ProFrac had a negative return on equity of 2.30% and a negative net margin of 8.58%. Equities analysts predict that ProFrac will post -0.13 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, major shareholder Holdings Lp Thrc purchased 353,635 shares of ProFrac stock in a transaction on Thursday, September 12th. The stock was acquired at an average cost of $6.17 per share, for a total transaction of $2,181,927.95. Following the completion of the acquisition, the insider now owns 79,197,549 shares of the company’s stock, valued at $488,648,877.33. This trade represents a 0.00 % increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders acquired 1,933,600 shares of company stock valued at $12,207,161 over the last 90 days. Company insiders own 2.93% of the company’s stock.

Hedge Funds Weigh In On ProFrac

Hedge funds have recently bought and sold shares of the company. American Century Companies Inc. grew its position in ProFrac by 72.0% in the 2nd quarter. American Century Companies Inc. now owns 315,689 shares of the company’s stock worth $2,339,000 after purchasing an additional 132,108 shares in the last quarter. Marshall Wace LLP boosted its position in ProFrac by 1,632.1% in the second quarter. Marshall Wace LLP now owns 242,491 shares of the company’s stock worth $1,797,000 after purchasing an additional 228,491 shares during the last quarter. Point72 Asset Management L.P. bought a new position in ProFrac in the 2nd quarter valued at $365,000. Squarepoint Ops LLC purchased a new stake in shares of ProFrac during the 2nd quarter valued at $150,000. Finally, Bank of New York Mellon Corp boosted its holdings in shares of ProFrac by 12.1% in the 2nd quarter. Bank of New York Mellon Corp now owns 117,720 shares of the company’s stock worth $872,000 after buying an additional 12,683 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.