Profrac holding executive chairman buys $2 million in stock

Matthew Wilks, the Executive Chairman of ProFrac Holding Corp. (NASDAQ:ACDC), has purchased a significant amount of the company’s stock amid a challenging period for the company, which has seen its shares decline over 10% in the past week. On February 26, Wilks acquired 288,756 shares of ProFrac’s Class A common stock at a price of $6.93 per share, totaling approximately $2,001,079. This transaction was made through JCMWZ, LLC, where Wilks serves as the manager. Following this purchase, Wilks holds a total of 1,517,676 shares in the $1.1 billion market cap company.The timing of this insider purchase is particularly noteworthy as ProFrac approaches its earnings announcement on March 6. InvestingPro analysis reveals that two analysts have recently revised their earnings expectations downward, with the company currently operating at a loss with a -$1.33 earnings per share over the last twelve months.Want deeper insights into insider trading patterns and their implications? InvestingPro subscribers get access to comprehensive insider trading analysis, along with 5+ additional exclusive ProTips for ACDC.

In other recent news, the energy sector has faced significant challenges at the start of the new year, with short sellers in the U.S. and Canada experiencing $21.9 billion in year-to-date mark-to-market losses. According to S3 Partners, the energy sector was particularly difficult for short sellers, with the Energy Select Sector SPDR ETF (NYSE:XLE) and Vanguard Energy ETF showing an 8% increase for the year. This led to $5.8 billion in losses for energy sector short sellers. Despite these losses, there has not been a notable amount of short covering, and short interest in the sector has increased by $4.9 billion to $83.2 billion. The largest increases in short selling were observed in Enbridge (NYSE:ENB), Tourmaline Oil, and Expand Energy, while TC Energy (NYSE:TRP), Chevron (NYSE:CVX), and Exxon Mobil (NYSE:XOM) saw the most significant short covering. Interestingly, both groups of stocks, those with increased short selling and those with increased short covering, experienced a 7% decline for the month. HighPeak Energy Inc, Profrac Holding Corp, and Atlas (NYSE:ATCO) Energy Solutions Inc were identified as the most crowded shorts in the sector. Additionally, Profrac Holding, Comstock Resources (NYSE:CRK), and Magnolia Oil & Gas Corp were noted as some of the squeeziest stocks, indicating crowded positions with recent losses.

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