Flotek Industries (NYSE:FTK) Shares Gap Down After Earnings Miss

Key Points

• Shares gapped down after hours following quarterly results—FTK opened at $15.51 (prior close $16.86) and last traded near $15.28 on ~88,958 shares after reporting EPS of $0.12 versus $0.13 expected, while revenue beat at $70.05M versus $63.08M consensus.
• Analyst sentiment is mixed but positive on balance: the stock has an average rating of "Moderate Buy" with an average target of $21.33; Lake Street started coverage at a $25 buy, while Zacks cut the stock to a hold.
• Insiders and institutions showed modest activity—CFO James Bond Clement sold 6,299 shares at about $16.02 (a 4.88% drop in his stake), insiders own 2.40% and institutional investors own roughly 10.9% of the company.

Flotek Industries, Inc. (NYSE:FTK - Get Free Report)'s share price gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $16.86, but opened at $15.51. Flotek Industries shares last traded at $15.2750, with a volume of 88,958 shares.

The oil and gas company reported $0.12 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.13 by ($0.01). The company had revenue of $70.05 million during the quarter, compared to the consensus estimate of $63.08 million. Flotek Industries had a return on equity of 21.32% and a net margin of 12.87%.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Lake Street Capital assumed coverage on Flotek Industries in a research report on Thursday, January 29th. They issued a "buy" rating and a $25.00 price target for the company. Zacks Research downgraded Flotek Industries from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 3rd. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of Flotek Industries in a research report on Friday, March 27th. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $21.33.

Insiders Place Their Bets

In other Flotek Industries news, CFO James Bond Clement sold 6,299 shares of the stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $16.02, for a total value of $100,909.98. Following the sale, the chief financial officer owned 122,837 shares in the company, valued at $1,967,848.74. This trade represents a 4.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 2.40% of the stock is currently owned by insiders.

Institutional Trading of Flotek Industries

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Rhumbline Advisers increased its stake in Flotek Industries by 3.6% in the third quarter. Rhumbline Advisers now owns 22,400 shares of the oil and gas company's stock worth $327,000 after purchasing an additional 770 shares during the period. First Trust Advisors LP increased its stake in Flotek Industries by 3.2% in the fourth quarter. First Trust Advisors LP now owns 43,495 shares of the oil and gas company's stock worth $749,000 after purchasing an additional 1,335 shares during the period. Barclays PLC increased its stake in Flotek Industries by 6.5% in the fourth quarter. Barclays PLC now owns 22,204 shares of the oil and gas company's stock worth $383,000 after purchasing an additional 1,351 shares during the period. Informed Momentum Co LLC increased its stake in Flotek Industries by 2.2% in the fourth quarter. Informed Momentum Co LLC now owns 63,959 shares of the oil and gas company's stock worth $1,102,000 after purchasing an additional 1,366 shares during the period. Finally, Aristides Capital LLC increased its stake in Flotek Industries by 4.6% in the fourth quarter. Aristides Capital LLC now owns 31,390 shares of the oil and gas company's stock worth $541,000 after purchasing an additional 1,390 shares during the period. Hedge funds and other institutional investors own 10.90% of the company's stock.

Flotek Industries Stock Performance

The stock has a market cap of $550.91 million, a PE ratio of 18.36 and a beta of 1.39. The company has a quick ratio of 1.63, a current ratio of 1.80 and a debt-to-equity ratio of 0.35. The firm has a 50 day moving average price of $16.53 and a 200 day moving average price of $16.51.

About Flotek Industries

Flotek Industries, Inc NYSE: FTK is a Houston-based oilfield services provider specializing in innovative chemical technologies for the upstream energy sector. The company develops, manufactures and markets specialty drilling fluids, completion fluids and production chemicals that enhance drilling efficiency, optimize well performance and mitigate operational risks. Flotek's solutions are designed to improve drilling rates of penetration, reduce nonproductive time and address challenging downhole environments, including high-pressure/high-temperature wells and sour service conditions.

Flotek's operations are organized into three core business segments: Drilling & Completion Fluids, Production Chemicals & Process Management, and Water Solutions.

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