Flotek Industries (NYSE:FTK) Shares Up 29.7% on Better-Than-Expected Earnings

Key Points

• Flotek Industries shares jumped 29.7% to $36.58 after the company reported quarterly EPS of $0.26, double analysts’ $0.13 consensus estimate, while revenue of $99.37 million significantly exceeded expectations of $69.51 million.
• Analyst sentiment is broadly positive: four analysts rate the stock a Buy and one rates it a Hold, resulting in a “Moderate Buy” consensus; JonesTrading initiated coverage with a $40 price target.
• Institutional ownership increased as several investment firms added shares, while CFO James Bond Clement sold 12,554 shares. Institutional investors own 10.9% of the company, compared with 2.4% insider ownership.

Flotek Industries, Inc. (NYSE:FTK - Get Free Report) shares were up 29.7% during mid-day trading on Wednesday following a stronger than expected earnings report. The company traded as high as $37.15 and last traded at $36.58. Approximately 228,688 shares changed hands during mid-day trading, a decline of 26% from the average session volume of 307,150 shares. The stock had previously closed at $28.21.

The oil and gas company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.13. Flotek Industries had a return on equity of 20.70% and a net margin of 11.83%.The business had revenue of $99.37 million during the quarter, compared to analysts' expectations of $69.51 million.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on the company. JonesTrading began coverage on Flotek Industries in a report on Thursday, July 9th. They issued a "buy" rating and a $40.00 price target for the company. Weiss Ratings upgraded shares of Flotek Industries from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, May 13th. Four equities research analysts have rated the stock with a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $28.33.

Insider Activity at Flotek Industries

In other news, CFO James Bond Clement sold 12,554 shares of the business's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $20.08, for a total value of $252,084.32. Following the completion of the sale, the chief financial officer directly owned 115,324 shares of the company's stock, valued at approximately $2,315,705.92. The trade was a 9.82% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 2.40% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Masters Capital Management LLC lifted its stake in Flotek Industries by 8.9% in the first quarter. Masters Capital Management LLC now owns 1,089,438 shares of the oil and gas company's stock valued at $18,488,000 after buying an additional 89,438 shares during the last quarter. Sei Investments Co. increased its holdings in shares of Flotek Industries by 100.0% in the 1st quarter. Sei Investments Co. now owns 76,076 shares of the oil and gas company's stock valued at $1,291,000 after acquiring an additional 38,038 shares during the period. Dimensional Fund Advisors LP raised its position in Flotek Industries by 71.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 691,593 shares of the oil and gas company's stock valued at $11,736,000 after purchasing an additional 288,064 shares during the last quarter. Principal Financial Group Inc. boosted its stake in Flotek Industries by 10.4% during the 1st quarter. Principal Financial Group Inc. now owns 80,480 shares of the oil and gas company's stock worth $1,366,000 after purchasing an additional 7,564 shares during the period. Finally, Kornitzer Capital Management Inc. KS purchased a new position in Flotek Industries during the 1st quarter worth $876,000. Institutional investors and hedge funds own 10.90% of the company's stock.

Flotek Industries Price Performance

The company's 50-day simple moving average is $23.88 and its 200-day simple moving average is $19.49. The company has a debt-to-equity ratio of 0.34, a quick ratio of 1.62 and a current ratio of 1.83. The company has a market capitalization of $1.32 billion, a PE ratio of 46.69 and a beta of 1.43.

Flotek Industries Company Profile

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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