ProFrac (NASDAQ:ACDC) Shares Up 7.9% After Insider Buying Activity

ProFrac Holding Corp. (NASDAQ:ACDC) traded up 7.9% during mid-day trading on Thursday after an insider bought additional shares in the company. The company traded as high as $5.05 and last traded at $4.9850. 729,850 shares changed hands during trading, a decline of 50% from the average session volume of 1,456,064 shares. The stock had previously closed at $4.62.

Specifically, major shareholder Dan H. Wilks purchased 30,820 shares of ProFrac stock in a transaction dated Tuesday, August 25th. The shares were purchased at an average cost of $4.81 per share, for a total transaction of $148,244.20. Following the completion of the acquisition, the insider owned 88,107,422 shares in the company, valued at $423,796,699.82. This represents a 0.03% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, major shareholder Dan H. Wilks bought 363,757 shares of the company’s stock in a transaction on Monday, August 24th. The shares were acquired at an average price of $4.70 per share, for a total transaction of $1,709,657.90. Following the completion of the acquisition, the insider owned 88,076,602 shares in the company, valued at $413,960,029.40. This represents a 0.41% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In other ProFrac news, major shareholder Dan H. Wilks acquired 212,650 shares of the company’s stock in a transaction dated Friday, August 21st. The shares were purchased at an average cost of $4.74 per share, for a total transaction of $1,007,961.00. Following the completion of the purchase, the insider owned 87,712,845 shares in the company, valued at approximately $415,758,885.30. This trade represents a 0.24% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link.

Wall Street Analyst Weigh In

Several research analysts have recently commented on ACDC shares. Weiss Ratings reissued a “sell (d-)” rating on shares of ProFrac in a research report on Wednesday, June 24th. Wall Street Zen downgraded ProFrac from a “hold” rating to a “sell” rating in a research report on Sunday. Piper Sandler raised their target price on ProFrac from $5.00 to $6.00 and gave the stock a “neutral” rating in a report on Monday, May 18th. Finally, Morgan Stanley decreased their price target on ProFrac from $5.00 to $4.50 and set an “underweight” rating for the company in a report on Thursday, August 20th. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, ProFrac has a consensus rating of “Reduce” and a consensus target price of $5.25.

Key Headlines Impacting ProFrac

Here are the key news stories impacting ProFrac this week:

• Positive Sentiment: Major shareholder Dan H. Wilks purchased 607,227 shares across August 21, 24, and 25 for approximately $2.87 million, at prices ranging from $4.70 to $4.81. The purchases increased his already sizable stake and may indicate confidence that ACDC is undervalued. Insider buying report
• Positive Sentiment: THRC Holdings LP reported matching purchases of 607,227 shares over the same period, worth approximately $2.87 million. Continued open-market buying by major shareholders can support investor sentiment, although it does not immediately improve ProFrac’s earnings, liquidity, or leverage. SEC Form 4 filing
• Neutral Sentiment: Reported short interest was zero shares as of August 25, unchanged from August 10. However, the filing includes an unreliable “NaN” percentage change, making the data of limited value for gauging short-covering or future trading pressure.
• Negative Sentiment: Analyst sentiment remains weak. Morgan Stanley lowered its price target from $5.00 to $4.50 and maintained an “underweight” rating, while Wall Street Zen downgraded ACDC from “hold” to “sell.” The consensus rating is “Reduce,” despite an average target of $5.25.
• Negative Sentiment: ACDC trades below its 50-day and 200-day moving averages, reflecting ongoing technical weakness. A negative P/E ratio, current ratio of 0.84, quick ratio of 0.59, and debt-to-equity ratio of 1.42 also highlight profitability, liquidity, and balance-sheet risks.

ProFrac Stock Performance

The company has a current ratio of 0.84, a quick ratio of 0.59 and a debt-to-equity ratio of 1.42. The stock’s fifty day simple moving average is $4.94 and its 200 day simple moving average is $5.89. The company has a market cap of $913.33 million, a price-to-earnings ratio of -2.15 and a beta of 1.46.

Institutional Trading of ProFrac

A number of hedge funds and other institutional investors have recently modified their holdings of ACDC. AXQ Capital LP grew its holdings in shares of ProFrac by 11.0% in the second quarter. AXQ Capital LP now owns 45,301 shares of the company’s stock valued at $263,000 after purchasing an additional 4,487 shares during the period. Bank of America Corp DE increased its holdings in shares of ProFrac by 186.9% during the 1st quarter. Bank of America Corp DE now owns 175,664 shares of the company’s stock worth $1,089,000 after buying an additional 114,429 shares during the last quarter. Quantinno Capital Management LP increased its holdings in shares of ProFrac by 94.4% during the 1st quarter. Quantinno Capital Management LP now owns 48,072 shares of the company’s stock worth $298,000 after buying an additional 23,347 shares during the last quarter. Renaissance Technologies LLC acquired a new position in ProFrac in the first quarter valued at approximately $872,000. Finally, Sei Investments Co. grew its position in ProFrac by 91.6% in the first quarter. Sei Investments Co. now owns 99,986 shares of the company’s stock worth $620,000 after acquiring an additional 47,800 shares during the period. 12.75% of the stock is 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.