Flotek Industries (NYSE:FTK) Shares Gap Up Following Insider Buying Activity

Flotek Industries, Inc. (NYSE:FTK)’s share price gapped up before the market opened on Tuesday following insider buying activity. The stock had previously closed at $26.34, but opened at $27.23. Flotek Industries shares last traded at $26.6360, with a volume of 16,311 shares changing hands.

Specifically, Director Matthew Wilks bought 1,319,493 shares of the firm’s stock in a transaction dated Friday, September 11th. The stock was acquired at an average price of $26.01 per share, with a total value of $34,320,012.93. Following the completion of the transaction, the director directly owned 1,477,285 shares in the company, valued at approximately $38,424,182.85. This represents a 836.22% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on FTK shares. Lake Street Capital upped their price target on Flotek Industries from $40.00 to $44.00 and gave the company a “buy” rating in a research report on Tuesday. JonesTrading began coverage on Flotek Industries in a research report on Thursday, July 9th. They set a “buy” rating and a $40.00 price objective for the company. Finally, Weiss Ratings cut Flotek Industries from a “buy (b)” rating to a “buy (b-)” rating in a research note on Friday, September 4th. Four 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.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $34.67.

Key Stories Impacting Flotek Industries

Here are the key news stories impacting Flotek Industries this week:

• Positive Sentiment: Director makes a substantial insider purchase. Director Matthew Wilks bought 1,319,493 shares at approximately $26.01 each, increasing his direct ownership more than eightfold. The purchase may signal confidence in Flotek’s long-term prospects. Flotek director insider purchase
• Positive Sentiment: Lake Street Capital raised its price target. The firm increased its target from $40 to $44 and maintained a Buy rating, indicating continued confidence in Flotek’s earnings outlook. The company’s most recent reported quarter also exceeded consensus expectations for revenue and EPS. Lake Street Capital price target report
• Negative Sentiment: A major shareholder sold a significant stake. Profrac GDM LLC sold 2,306,806 shares for approximately $60 million, reducing its position by 38.45%. The transaction could raise concerns about near-term selling pressure, although it does not necessarily indicate a change in the company’s fundamentals.
• Negative Sentiment: Multiple law firms publicized a securities class action and an October 26 lead-plaintiff deadline. The allegations concern Flotek’s disclosures surrounding a roughly $400 million Puerto Rico PREPA contract, including claims that investors were not informed about concerns involving consortium partners, an allegedly unauthorized signature and a convicted felon’s participation. The contract’s collapse and related litigation create legal, reputational and financial risks. The allegations have not been proven, and the numerous announcements largely relate to the same case. Flotek securities lawsuit deadline

Flotek Industries Stock Up 4.2%

The business’s 50 day simple moving average is $27.11 and its 200-day simple moving average is $21.89. The company has a market cap of $1.02 billion, a price-to-earnings ratio of 28.41 and a beta of 1.47. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.50 and a current ratio of 1.78.

Flotek Industries (NYSE:FTK) last posted its quarterly earnings results on Tuesday, August 4th. The oil and gas company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.13 by $0.13. Flotek Industries had a net margin of 12.97% and a return on equity of 21.57%. The business had revenue of $99.37 million for the quarter, compared to analysts’ expectations of $69.51 million. Sell-side analysts expect that Flotek Industries, Inc. will post 0.76 earnings per share for the current year.

Institutional Investors Weigh In On Flotek Industries

Several institutional investors have recently made changes to their positions in the company. Squarepoint Ops LLC increased its holdings in Flotek Industries by 51.8% in the second quarter. Squarepoint Ops LLC now owns 111,425 shares of the oil and gas company’s stock worth $2,621,000 after buying an additional 38,046 shares during the last quarter. Round Rock Advisors LLC lifted its stake in Flotek Industries by 203.4% in the second quarter. Round Rock Advisors LLC now owns 81,471 shares of the oil and gas company’s stock valued at $1,916,000 after acquiring an additional 54,620 shares during the last quarter. AWM Investment Company Inc. bought a new stake in Flotek Industries in the second quarter worth approximately $706,000. Bank of New York Mellon Corp bought a new stake in Flotek Industries in the second quarter worth approximately $1,160,000. Finally, Masters Capital Management LLC increased its stake in shares of Flotek Industries by 8.9% during the 1st quarter. Masters Capital Management LLC now owns 1,089,438 shares of the oil and gas company’s stock worth $18,488,000 after purchasing an additional 89,438 shares during the last quarter. 10.90% of the stock is currently owned by institutional investors and hedge funds.

About Flotek Industries

Flotek Industries, Inc is a Houston, Texas-based technology company that develops and commercializes specialty green chemistry solutions. Its products are designed to help customers improve operational efficiency, reduce environmental impacts and manage resource use across energy, industrial and consumer applications.

The company’s principal offerings serve the oil and gas industry, including chemistry technologies used in well completion, production and other field operations. Flotek’s CnF® technology is a flagship product line intended to enhance hydrocarbon recovery while supporting efforts to reduce emissions, water consumption and the use of conventional chemical additives.