ProFrac Holding Corp. (NASDAQ:ACDC) saw significant insider activity as Executive Chairman Matthew Wilks acquired a substantial number of shares earlier this week. According to a recent SEC filing, Wilks purchased a total of 79,960 shares of ProFrac's Class A common stock over two days.
On November 25, Wilks acquired 58,845 shares at a weighted average price of $7.75 per share. The following day, he purchased an additional 21,115 shares at a weighted average price of $7.91 per share. The transactions were completed at prices ranging from $7.68 to $8.10 per share, resulting in a total investment of approximately $623,068.
These purchases increase Wilks' direct ownership in ProFrac to 1,517,676 shares. The acquisition reflects a continued confidence in the company's prospects from its leadership.
In other recent news, ProFrac Holding Corp. reported steady Q3 earnings despite facing market challenges. The company revealed a revenue of $575 million and adjusted EBITDA of $135 million, with record operational efficiencies as some fleets achieved over 22 hours of pumping per day. Amid these developments, ProFrac is phasing out older diesel frac pumps and investing in next-generation electric pumps and a new software platform.
ProFrac also anticipates a recovery in activity by 2025, specifically targeting the West Texas and South Texas markets. Despite a challenging Q4 forecast, the company is aligning costs with activity levels and investing in fleet enhancements. The Q3 financial results also highlighted a free cash flow of $31 million, with the company aiming to utilize this to reduce leverage.
The company has also faced a 24% sequential decline in revenues to $53 million in the proppant segment due to weak natural gas activity and competition. Meanwhile, the company is making strides in technology, with successful tests of next-generation electric pumps and approximately 75% of active fleets now utilizing e-fleet or dual fuel technology. ProFrac is strategically focusing on cost management and fleet quality, preparing for an anticipated demand recovery.
InvestingPro Insights
ProFrac Holding Corp. (NASDAQ:ACDC) has recently experienced a significant uptick in its stock performance, which aligns with the insider buying activity reported. According to InvestingPro data, ACDC has shown a strong return of 42.81% over the last month and 23.03% over the last three months. This positive momentum is further emphasized by the stock's current price being 86.56% of its 52-week high, suggesting a potential recovery trend.
An InvestingPro Tip indicates that ACDC has seen a significant return over the last week, with data showing an 18.21% price total return. This recent surge could be interpreted as the market reacting positively to the insider buying, particularly the substantial purchase by Executive Chairman Matthew Wilks.
However, investors should note that another InvestingPro Tip reveals that analysts do not anticipate the company will be profitable this year. This insight, combined with the company's current P/E ratio of -29.87 for the last twelve months as of Q3 2024, suggests that ProFrac is still in a growth phase and may be prioritizing expansion over immediate profitability.
For a more comprehensive analysis, InvestingPro offers 5 additional tips that could provide deeper insights into ProFrac's financial health and market position. These additional tips could be particularly valuable for investors looking to understand the full context of the insider buying activity and the company's future prospects.
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