Johnathan Wilks Bought 35% More Shares In ProFrac Holding

Those following along with ProFrac Holding Corp. (NASDAQ:ACDC) will no doubt be intrigued by the recent purchase of shares by Johnathan Wilks, Chief Executive Officer of the company, who spent a stonking US$2.3m on stock at an average price of US$6.93. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 35%.

View our latest analysis for ProFrac Holding

ProFrac Holding Insider Transactions Over The Last Year

Notably, that recent purchase by Johnathan Wilks is the biggest insider purchase of ProFrac Holding shares that we've seen in the last year. That implies that an insider found the current price of US$7.19 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for ProFrac Holding share holders is that insiders were buying at near the current price.

While ProFrac Holding insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

ProFrac Holding is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. ProFrac Holding insiders own about US$33m worth of shares. That equates to 2.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The ProFrac Holding Insider Transactions Indicate?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of ProFrac Holding we think they are probably pretty confident of a bright future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for ProFrac Holding.

But note: ProFrac Holding may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.