ProPetro stock: buy or sell?

PUMP stock price: $22.68 -2.83% At close on May 20th, 2019

Updated on:
May 20th, 2019

2

ProPetro shares eased -2.83% to $22.68 today. On Thursday PUMP rocketed a super good 6.36%.

ProPetro Holding Corp. provides oilfield services. The company offers hydraulic fracturing and other complementary services, including cementing, acidizing, coiled tubing, flowback, and surface air drilling services to upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources in the Permian Basin.

Should I buy ProPetro stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with ProPetro stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is ProPetro stock a buy?

Banks and financial institutions post stock ratings everyday. At Stocks2.com, we detected 9 ratings published for PUMP stock in the last 30 days.

The general sentiment of these ratings is bullish for PUMP stock, with 8 positive ratings.
Is PUMP a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-4-4Raymond JamesStrong-BuyOutperform
2019-4-16Bank of AmericaBuyNeutral
2019-3-29Wells Fargo & Con/aOutperform
2019-2-28Credit Suisse Groupn/aBuy
2019-1-8Tudor PickeringHoldBuy
2019-1-7Johnson RiceHoldBuy
2019-1-23Raymond Jamesn/aBuy
2019-1-17CowenMarket PerformOutperform
2019-1-15BarclaysEqual WeightOverweight

ProPetro stock analysis

Daily outlook

ProPetro eased a horrible -2.83% and closed at $22.68.

Shares of ProPetro closed today at $22.68 and eased a horrible -2.83%. Since SMA100d and SMA200d crossed up on February, PUMP price climbed $3.99 per share (21.35%). Since price and SMA200d lines crossed up on February, PUMP climbed $6.34 (38.80%). On April 23rd, PUMP hit new all time highs, pushing higher previous ATH of $24.83 recorded on April/22. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

PUMP stock chart (daily)

Weekly outlook

After boosting a dazzling 7.67% in a week last week, ProPetro closed this week at $22.68 and eased a rough -2.83%.

Having descending tops is not good news for traders invested in ProPetro. Although it's only a warning signal, investors should be on alert during next weeks to identify possible new signals. It's important PUMP stock price keeps the level, and maybe bounce up from there forming a double bottom configuration. Not so far away is the last price record ProPetro marked late April. Since mid February when SMA20w and SMA40w crossed up, PUMP price gained $4.52 per share (24.89%). Since price and SMA40w lines crossed up late January, PUMP climbed $7.23 (46.80%).

PUMP stock chart (weekly)

ProPetro stock price history

ProPetro IPO was on March 17th, 2017 at $15.00 per share1. Since then, PUMP stock surged a 51.20%, with a yearly average of 25.60%. If you had invested $1,000 in ProPetro stock in 2017, it would worth $512.00 today.

1: Adjusted price after possible price splits or reverse-splits.

ProPetro stock historical price chart

PUMP stock reached all-time highs on April 23rd with a price of $25.38.

ProPetro stock price target is $22.50

Nobody can reliably foresee how stock prices may evolve in the future. However, many stock price predictions are published every day by banks, financial institutions and independent analysts. The accuracy of these stock price predictions is not very high, and you should not blindly believe and make decisions only based on what this ratings or price target predictions say. For the last 30 days we found 4 price targets for PUMP stock:
PUMP stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-2-28Credit Suisse GroupReiteratesn/a$22.00-
2019-1-23Raymond JamesSet Price Targetn/a$24.00-
2019-1-17CowenUpgrades$25.00$24.00-4%
2019-1-15BarclaysUpgradesn/a$20.00-
(in average)$25.00$22.50-10.0%
The price forecast for ProPetro stock is $22.50, moving in a range between $24.00 and $20.00. In average, analysts' outlook on PUMP price target is negative, downgrading the forecast by a -10.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, ProPetro presented its financial report, posting a good growth for the Earnings per Share (EPS) ratio. Analyst expected $0.53 per share, but ProPetro posted $0.59.
PUMP earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.31n/a
2017-Q2-n/a0.17n/a
2017-Q3-n/a0.32n/a
2017-Q42018-03-260.390.12-69.2%
2018-Q12018-05-080.380.4210.5%
2018-Q22018-08-070.540.45-16.7%
2018-Q32018-11-060.540.53-1.9%
2018-Q42019-02-260.530.5911.3%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2017, ProPetro annual sales skyrocketed a dazzling 124.22% to $983.71 M USD from $438.72 marked in 2016. Aligned with this, its profit margin (compared to revenues) boosted to 1.28%, that is $12.61 million.

ProPetro presents anual results in December, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, ProPetro TTM sales up to December 2018 were $1,704.56 and income $173.86 M USD. When comparing this TTM figures with the last reported annuality, we can esteem ProPetro business evolution since December 2017: Annual revenues up to December, compared to lastest yearly report, climbed a super good 73.28%. Regarding profit margin, ProPetro soared 8.92% to 1.28%

PUMP annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2015$570 M-$-45.85 M-8.0%-
2016$439 M-22.98%$-53.15 M-12.1%15.92%
2017$984 M124.22%$13 M1.3%-123.73%
TTM $1,705 M73.28%$174 M10.2%1,278.76%

Quarterly financial results

ProPetro posted $425.41 million in sales for 2018-Q4, a -1.99% decline compared to previous quarter. Reported quarter earnings marked $51.78 M with a profit margin of 12.17%. Profit margin inched a 1.51% compared to previous quarter when profit margin was 10.66%. When comparing revenues to same quarter last year, ProPetro sales marked an amazing increase and rocketed a 35.61%. Looking back to recent quarterly results, ProPetro posted 2 positive quarters in a row.
PUMP quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$172 M-$-24 M-14.2%-
2017-Q2$213 M24.17%$5 M2.3%-120.21%
2017-Q3$283 M32.43%$22 M7.8%346.54%
2017-Q4$314 M10.96%$10 M3.2%-54.13%
2018-Q1$385 M22.79%$37 M9.5%264.24%
2018-Q2$460 M19.38%$39 M8.5%6.49%
2018-Q3$434 M-5.62%$46 M10.7%18.40%
2018-Q4$425 M-1.99%$52 M12.2%11.87%

ProPetro ownership

When you are planning to buy a company, it's always worth to review its ownership structure.

ProPetro shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 21.36% of all shares.

Bearish positions for PUMP stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to ProPetro:

PUMP
Market cap$2.3 B
Total shares100.4 M
Float shares79.5 M
  - Institutional holdings (%)93.4%
  - Insider holdings (%)21.4%
Shares in short selling0.0%

ProPetro summary

Monday, May 20th, 2019
Open$23.31
Close$22.68
Day range$22.64 - $23.71
Previous close$23.34
Session gain-2.83%
Average true range$1.18
50d mov avg$22.39
100d mov avg$19.41
200d mov avg$18.00
Daily pattern
Weekly pattern lt01a

ProPetro performance

Performance as an absolute value is never valid if it's not benchmarked against competitors or related stocks in the industry. In the following table, we compare ProPetro to :
Stock3m6m12m
PUMPProPetro20.45%26.42%28.14%

ProPetro competitors

Unfortunately, we could not find any public company that could be defined as ProPetro competitor. This doesn't mean ProPetro does not have any competitor in the market, it's just we could not detected it.