In a recent transaction, ProFrac Holding Corp. (NASDAQ:PFHC) has seen a significant purchase of its shares by an insider. THRC Holdings, LP, which is a ten percent owner of the company, acquired a total of $1.7 million worth of Class A common stock. The transaction was executed over two days, with prices ranging from $6.25 to $6.44 per share.
On September 9, 2024, THRC Holdings, LP bought 2,154 shares at a weighted average price of $6.25. The following day, they made a larger purchase of 262,853 shares at a weighted average price of $6.44. These purchases were part of multiple transactions with prices varying within the stated ranges.
The recent acquisitions have increased the total holdings of THRC Holdings, LP to 78,843,915 shares of ProFrac Holding Corp.'s Class A common stock. It is important to note that the reported amount of securities beneficially owned does not include the 30,000 Series A Redeemable Convertible Preferred Stock previously reported.
THRC Management, LLC, as the General Partner of THRC Holdings, has exclusive voting and investment control over the shares held by THRC Holdings. Dan Wilks, as the sole manager of THRC Management, may also be deemed to have voting and investment power over these shares. However, each reporting person has disclaimed beneficial ownership of the equity securities reported, except to the extent of their respective pecuniary interest therein.
The transactions have been publicly disclosed as per the regulatory requirements, and further details regarding the number of shares purchased at each separate price within the range can be provided upon request. The insider's investment in ProFrac Holding Corp. reflects a notable addition to their already substantial holdings in the company.
In other recent news, ProFrac Holding Corp reported robust operational performance and solid financial outcomes for the second quarter of 2024, despite market challenges. The company announced revenues of $579 million and an adjusted EBITDA of $136 million. ProFrac also noted record efficiency in its pressure pumping segment and increased its market share in West Texas.
The acquisition of Advanced Stimulation Technologies is expected 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 facing weakness in natural gas regions, ProFrac anticipates a volume recovery in the third quarter.
These developments highlight ProFrac's strategic approach to navigating a challenging market environment, focusing on integrated solutions, cost management, and operational efficiency. The company's acquisition and market share growth position it well for anticipated improvements in the natural gas market.
InvestingPro Insights
As ProFrac Holding Corp. (NASDAQ:PFHC) witnesses significant insider buying activity, it's insightful to consider the company's current financial metrics and market performance. According to InvestingPro, the company's Market Cap stands at approximately $1.07 billion, indicating a substantial size within its sector. Despite the recent insider purchases suggesting confidence in the company's prospects, the P/E Ratio is currently negative at -5.36, reflecting challenges in profitability.
InvestingPro Tips suggest that analysts are not expecting ProFrac Holding Corp. to be profitable this year, which aligns with the negative P/E Ratio. Additionally, the company is trading near its 52-week low, which might have presented a perceived opportunity for insiders to buy shares at what they believe to be undervalued prices. It's noteworthy that ProFrac Holding Corp. does not pay a dividend, which could influence investment decisions for income-focused investors.
The company's performance over the last month has shown a strong return of 15.94%, which could signal a potential turnaround or simply reflect market volatility. For investors looking to dive deeper into the company's performance and future outlook, InvestingPro offers additional tips on ProFrac Holding Corp., which can be found at https://www.investing.com/pro/PFHC.
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