Flotek Industries (NYSE:FTK) Shares Climb 5.6% - Should You Buy?

Key Points

• Flotek Industries shares rose 5.6% to $27.095, though trading volume was 86% below its average daily level.
• Analysts remain generally positive, with a consensus “Moderate Buy” rating and a $34.67 average price target; individual targets range up to $44.
• The company exceeded quarterly expectations, reporting $0.26 EPS versus a $0.13 estimate and revenue of $99.37 million versus a $69.51 million consensus forecast. Insider activity was mixed, with a major shareholder selling shares while a director significantly increased their stake.

Flotek Industries, Inc. (NYSE:FTK - Get Free Report) rose 5.6% during trading on Tuesday. The company traded as high as $26.80 and last traded at $27.0950. Approximately 52,522 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 380,847 shares. The stock had previously closed at $25.65.

Analysts Set New Price Targets

Several equities research analysts recently commented on FTK shares. JonesTrading started 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 lowered Flotek Industries from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, October 2nd. Finally, Lake Street Capital upped their price objective on shares of Flotek Industries from $40.00 to $44.00 and gave the company a "buy" rating in a report on Tuesday, September 15th. Four research analysts have rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, Flotek Industries has a consensus rating of "Moderate Buy" and a consensus target price of $34.67.

Flotek Industries Price Performance

The company has a 50 day moving average of $28.54 and a 200 day moving average of $23.47. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.50 and a current ratio of 1.78. The stock has a market capitalization of $972.65 million, a price-to-earnings ratio of 27.11 and a beta of 1.42.

Flotek Industries (NYSE:FTK - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The oil and gas company reported $0.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.13. Flotek Industries had a return on equity of 21.57% and a net margin of 12.97%. The company had revenue of $99.37 million during the quarter, compared to the consensus estimate of $69.51 million. As a group, equities research analysts anticipate that Flotek Industries, Inc. will post 0.76 EPS for the current year.

Insider Activity at Flotek Industries

In other Flotek Industries news, major shareholder Profrac Gdm, Llc sold 2,306,806 shares of the business's stock in a transaction on Friday, September 11th. The shares were sold at an average price of $26.01, for a total value of $60,000,024.06. Following the transaction, the insider directly owned 3,693,194 shares of the company's stock, valued at approximately $96,059,975.94. The trade was a 38.45% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Matthew Wilks bought 1,319,493 shares of Flotek Industries stock in a transaction dated Friday, September 11th. The stock was purchased at an average price of $26.01 per share, with a total value of $34,320,012.93. Following the purchase, the director directly owned 1,477,285 shares in the company, valued at approximately $38,424,182.85. This trade represents a 836.22% increase in their position. The disclosure for this purchase is available in the SEC filing. 2.40% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Masters Capital Management LLC boosted its holdings in Flotek Industries by 8.9% in the 1st 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 purchasing an additional 89,438 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of 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 buying an additional 288,064 shares during the period. Manatuck Hill Partners LLC boosted its stake in shares of Flotek Industries by 9.5% in the fourth quarter. Manatuck Hill Partners LLC now owns 289,000 shares of the oil and gas company's stock valued at $4,979,000 after buying an additional 25,000 shares in the last quarter. S Squared Technology LLC grew its holdings in Flotek Industries by 14.1% during the fourth quarter. S Squared Technology LLC now owns 263,726 shares of the oil and gas company's stock worth $4,544,000 after acquiring an additional 32,654 shares during the period. Finally, Squarepoint Ops LLC boosted its position in shares of Flotek Industries by 51.8% during the 2nd quarter. Squarepoint Ops LLC now owns 111,425 shares of the oil and gas company's stock worth $2,621,000 after purchasing an additional 38,046 shares in the last quarter. 10.90% of the stock is owned by hedge funds and other institutional investors.

About Flotek Industries

Flotek Industries, Inc is a technology company that develops and supplies specialty green chemistry and data-driven solutions for the energy industry. Its offerings are designed to help oil and natural gas producers improve well performance, manage production processes and reduce the environmental impact of energy operations.

Through its Chemistry Technologies segment, Flotek provides biodegradable and environmentally focused chemical products used in drilling, cementing, stimulation, completion and production activities.

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