Profrac Holding execs buy $2.18 million in company stock By Investing.com

Executives of ProFrac Holding Corp. (NASDAQ:PFHC) have recently increased their stakes in the company through a series of stock purchases. The transactions, which took place on September 12, 2024, involved the acquisition of a total of 353,635 shares of Class A common stock at an average price of $6.17 per share. The total value of the purchases amounted to approximately $2.18 million.

The shares were bought in multiple transactions with prices ranging from $5.88 to $6.24, indicating a strategic buying approach as the executives capitalized on the price range. Following these transactions, the involved parties now hold a combined total of 79,197,549 shares in ProFrac Holding Corp., excluding the 30,000 Series A Redeemable Convertible Preferred Stock previously reported.

The buying entities include THRC Holdings, LP, THRC Management, LLC, and Dan H. Wilks, each with a significant interest in the company. THRC Holdings, LP directly holds the securities, while THRC Management, LLC, as the General Partner, has exclusive voting and investment control over the shares. Dan Wilks, as the sole manager of THRC Management, may also be deemed to exercise control over these shares. However, each party has disclaimed beneficial ownership of the equity securities reported, except to the extent of their respective pecuniary interest.

These recent purchases by ProFrac Holding Corp.’s executives demonstrate a clear vote of confidence in the company’s future prospects and financial health. Investors often view insider buying as a positive sign that those with the most intimate knowledge of the company expect the stock to perform well.

The disclosed transactions provide transparency to the market and ensure that ProFrac Holding Corp.’s stakeholders are informed about significant changes in insider ownership. The executives involved have committed to providing further details regarding the specific number of shares bought at each price point within the range upon request.

In other recent news, ProFrac Holding Corp reported solid Q2 2024 financial results, despite facing market challenges. The company announced revenues of $579 million and an adjusted EBITDA of $136 million, a 23% margin, even with a 15% decline from the previous quarter. ProFrac also highlighted record efficiency in its pressure pumping segment and increased market share in West Texas, a significant U.S. land market for completions.

The acquisition of Advanced Stimulation Technologies is anticipated to enhance ProFrac’s earnings and market position. The company generated $74 million in free cash flow and is actively exploring options to meet rising customer demand for power generation. Despite current weakness in regions, ProFrac anticipates a volume recovery in the third quarter.

Recent developments also include ProFrac’s total debt standing at $1.2 billion, with plans to use free cash flow for deleveraging. The company also plans to incur $150-200 million in maintenance capital expenditures and approximately $100 million for growth-related capital expenditures in 2024. Amid these developments, ProFrac maintains a cautiously optimistic outlook for the gas market in the second half of the year, focusing on disciplined cost management.

InvestingPro Insights

In light of the recent insider buying activity at ProFrac Holding Corp., investors may be curious about the financial health and future prospects of similar companies in the industry. ACDC, a peer in the sector, presents a mixed financial picture according to real-time data from InvestingPro. While the company has not been profitable over the last twelve months, analysts predict that ACDC will become profitable this year. This aligns with the positive sentiment often associated with insider purchases, as seen with ProFrac Holding Corp.

InvestingPro Data for ACDC shows a market capitalization of $992.91 million, indicating a substantial presence in its sector. Despite a challenging period with a revenue decline of 27.25% over the last twelve months as of Q2 2024, the company maintains a solid gross profit margin of 35.1%. This suggests that ACDC is effective at controlling the cost of goods sold and could potentially leverage this strength to improve its bottom line as it works toward profitability.

One of the InvestingPro Tips for ACDC highlights that the company does not pay a dividend to shareholders, which is a critical consideration for income-focused investors. However, for those more interested in growth potential, the PEG ratio of 0.03 suggests that the company’s earnings growth may be undervalued relative to its peers. This could be of interest to investors who are looking for potential upside in the stock’s future performance.

For those who wish to delve deeper into the financial nuances of ACDC, it’s worth noting that there are additional InvestingPro Tips available. These insights can provide further clarity on the company’s financial health and help inform investment decisions. Interested readers can find more detailed tips and metrics by visiting the InvestingPro platform directly.

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