ProPetro (NYSE:PUMP) Trading Down 8.7% – Here’s Why

ProPetro Holding Corp. (NYSE:PUMP) shares traded down 8.7% during mid-day trading on Monday . The stock traded as low as $10.51 and last traded at $10.4570. Approximately 2,046,211 shares traded hands during trading, a decline of 47% from the average session volume of 3,876,642 shares. The stock had previously closed at $11.45.

Wall Street Analysts Forecast Growth

PUMP has been the topic of a number of analyst reports. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $16.00 price objective on shares of ProPetro in a report on Wednesday, June 3rd. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of ProPetro in a report on Friday, July 31st. Morgan Stanley started coverage on ProPetro in a report on Monday. They issued an “equal weight” rating and a $13.00 price objective for the company. Barclays lowered their target price on ProPetro from $23.00 to $18.00 and set an “overweight” rating on the stock in a research report on Wednesday, August 5th. Finally, Citigroup decreased their price target on ProPetro from $20.00 to $16.00 and set a “buy” rating for the company in a research note on Monday, August 3rd. Eight analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $15.78.

ProPetro Stock Down 0.9%

The company has a debt-to-equity ratio of 0.80, a quick ratio of 4.00 and a current ratio of 4.09. The company has a market cap of $1.28 billion, a P/E ratio of -94.59 and a beta of 0.77. The stock has a 50 day moving average price of $11.72 and a 200 day moving average price of $13.74.

ProPetro (NYSE:PUMP) last released its earnings results on Wednesday, July 29th. The company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.01) by ($0.06). ProPetro had a negative return on equity of 1.49% and a negative net margin of 1.15%.The firm had revenue of $305.81 million for the quarter, compared to analyst estimates of $304.48 million. During the same period in the previous year, the firm earned ($0.07) earnings per share. ProPetro’s revenue was down 6.3% on a year-over-year basis. Research analysts expect that ProPetro Holding Corp. will post -0.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, COO Adam Muñoz sold 70,696 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $11.17, for a total value of $789,674.32. Following the completion of the transaction, the chief operating officer owned 148,691 shares in the company, valued at $1,660,878.47. This trade represents a 32.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director G Lawrence sold 35,831 shares of the firm’s stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $11.16, for a total value of $399,873.96. Following the sale, the director directly owned 28,181 shares of the company’s stock, valued at approximately $314,499.96. This trade represents a 55.98% decrease in their position. The SEC filing for this sale provides additional information. 1.55% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in PUMP. Public Employees Retirement System of Ohio acquired a new stake in shares of ProPetro during the 2nd quarter worth about $74,000. State of Wyoming acquired a new position in ProPetro in the first quarter valued at approximately $83,000. Caitong International Asset Management Co. Ltd acquired a new position in ProPetro in the fourth quarter valued at approximately $111,000. Alpine Global Management LLC purchased a new position in ProPetro in the fourth quarter valued at approximately $118,000. Finally, ProShare Advisors LLC increased its stake in ProPetro by 6.9% in the fourth quarter. ProShare Advisors LLC now owns 14,643 shares of the company’s stock valued at $139,000 after purchasing an additional 944 shares during the last quarter. 84.70% of the stock is owned by institutional investors and hedge funds.

About ProPetro

ProPetro Holding Corp. is an oilfield services company that provides completion and production services to exploration and production companies developing unconventional oil and natural gas wells. The company primarily serves customers in the Permian Basin, including the Midland and Delaware basins of West Texas and southeastern New Mexico.

Its principal services include hydraulic fracturing, which uses high-pressure fluid to stimulate wells, as well as wireline services used for well evaluation, perforating and other completion activities.