In a notable move within the energy sector, Dan Wilks, through THRC Holdings, LP and THRC Management, LLC, has made a significant investment in ProFrac Holding Corp. (NASDAQ:PFHC), purchasing shares valued at over $9.3 million. The transactions, reported in a recent SEC filing, took place on May 28 and May 29, with a total of 1,000,000 shares acquired.
The purchases were executed at weighted average prices that varied slightly over the two days. On May 28, the average price per share was $9.49, with prices ranging from $9.40 to $9.50. The following day, the average dropped to $9.32, with individual transactions occurring between $9.29 to $9.40 per share. The total investment for these acquisitions amounted to $9,394,836.
Dan Wilks, who is a notable figure in the energy industry, made these purchases through entities where he has a vested interest. THRC Holdings, LP directly holds the securities, while THRC Management, LLC, as the general partner, has exclusive voting and investment control over the shares held by THRC Holdings. Wilks, as the sole manager of THRC Management, may be deemed to have voting and investment power over the shares and, therefore, may be considered to beneficially own the shares acquired.
Following these transactions, the total number of shares beneficially owned by the entities associated with Wilks has increased significantly. However, it should be noted that the reported amount does not include the 30,000 Series A Redeemable Convertible Preferred Stock previously reported.
Investors and market watchers often pay close attention to the buying and selling activities of company executives and significant shareholders, as these can be indicative of their confidence in the company's future performance. The recent purchases by Wilks are likely to be interpreted as a strong positive signal about ProFrac's prospects.
InvestingPro Insights
Amidst the energy sector's dynamic landscape, ProFrac Holding Corp. (NASDAQ:PFHC) has caught the attention of investors, particularly with Dan Wilks' substantial acquisition of shares. To further understand the financial nuances of this company, a glance at the latest metrics from InvestingPro can offer additional insights.
With a market capitalization of $1.49 billion, ProFrac presents a notable scale within its industry. Despite a challenging past year reflected by a revenue decline of 19.88% for the last twelve months as of Q1 2024, the company has demonstrated a strong return over the last month, with a 28.47% price total return. This recent performance could be a factor in the investment decision made by Wilks, suggesting a potential turnaround or undervalued status of the company's shares.
InvestingPro Tips highlight that ProFrac is expected to see net income growth this year, aligning with analyst predictions of the company turning profitable within the same timeframe. This could indicate a trajectory of recovery and growth, possibly underpinning the investor's confidence in ProFrac's future. However, it's worth noting that ProFrac does not pay a dividend, which might be a consideration for income-focused investors.
For those seeking a comprehensive analysis, InvestingPro offers additional tips on ProFrac, which could further inform investment decisions. Interested readers can access these tips and explore in-depth metrics by visiting https://www.investing.com/pro/PFHC. Additionally, users can take advantage of the exclusive offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking valuable insights that could shape their investment strategies.
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