Flotek Industries (NYSE:FTK) Shares Gap Down on Disappointing Earnings

Flotek Industries, Inc. (NYSE:FTK)’s stock price gapped down prior to trading on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $17.29, but opened at $14.95. Flotek Industries shares last traded at $17.5120, with a volume of 376,895 shares changing hands.

The oil and gas company reported $0.08 earnings per share for the quarter, missing the consensus estimate of $0.15 by ($0.07). Flotek Industries had a return on equity of 22.62% and a net margin of 14.48%.The business had revenue of $67.52 million during the quarter, compared to analysts’ expectations of $53.37 million.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Northland Securities reaffirmed an “outperform” rating and set a $20.00 target price on shares of Flotek Industries in a research report on Wednesday, December 31st. Lake Street Capital began coverage on Flotek Industries in a research note on Thursday, January 29th. They set a “buy” rating and a $25.00 price objective for the company. Wall Street Zen downgraded Flotek Industries from a “buy” rating to a “hold” rating in a research report on Sunday, November 16th. Zacks Research lowered Flotek Industries from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, February 3rd. Finally, Weiss Ratings reiterated a “hold (c+)” rating on shares of Flotek Industries in a report on Monday, December 29th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $21.33.

Insider Activity

In other 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 transaction of $100,909.98. Following the completion of the sale, the chief financial officer owned 122,837 shares in the company, valued at approximately $1,967,848.74. This represents a 4.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 3.02% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in FTK. Millennium Management LLC increased its position in Flotek Industries by 304.4% during the 3rd quarter. Millennium Management LLC now owns 809,398 shares of the oil and gas company’s stock valued at $11,817,000 after buying an additional 609,268 shares in the last quarter. Invesco Ltd. purchased a new stake in shares of Flotek Industries during the second quarter worth about $4,436,000. Manatuck Hill Partners LLC acquired a new position in shares of Flotek Industries during the third quarter valued at about $3,854,000. UBS Group AG increased its holdings in shares of Flotek Industries by 512.8% during the third quarter. UBS Group AG now owns 232,966 shares of the oil and gas company’s stock valued at $3,401,000 after acquiring an additional 194,951 shares in the last quarter. Finally, Bard Associates Inc. purchased a new position in shares of Flotek Industries in the 4th quarter valued at approximately $3,279,000. 10.90% of the stock is currently owned by hedge funds and other institutional investors.

Flotek Industries Stock Up 2.4%

The business’s 50 day moving average is $17.19 and its 200 day moving average is $15.69. The company has a market capitalization of $532.36 million, a price-to-earnings ratio of 19.90 and a beta of 1.45. The company has a debt-to-equity ratio of 0.36, a quick ratio of 1.54 and a current ratio of 1.77.

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.