A History of Outperforming Analyst Forecasts and Beating the Odds: Flotek Industries Inc. (FTK)

Flotek Industries Inc. (NYSE: FTK) stock jumped 2.92% on Friday to $1.41 against a previous-day closing price of $1.37. With 1.13 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.28 million shares. During the session, the Oil & Gas Equipment & Services company that operates in wider Energy sector, reached to the highest price of $1.5400 whereas the lowest price it dropped to was $1.3400. The 52-week range on FTK shows that it touched its highest point at $1.97 and its lowest point at $0.68 during that stretch. It currently has a 1-year price target of $1.40. Beta for the stock currently stands at 1.77.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FTK was up-trending over the past week, with a rise of 17.50%, but this was up by 30.56% over a month. Three-month performance surged to 20.51% while six-month performance rose 28.18%. The stock gained 36.89% in the past year, while it has gained 25.89% so far this year. A look at the trailing 12-month EPS for FTK yields -0.53 with Next year EPS estimates of 0.07. For the next quarter, that number is -0.11. This implies an EPS growth rate of 79.20% for this year and 116.70% for next year. EPS is expected to grow by 10.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -39.30%.

Float and Shares Shorts:

At present, 75.31 million FTK shares are outstanding with a float of 72.98 million shares on hand for trading. On Oct 13, 2022, short shares totaled 2.74 million, which was 3.53% higher than short shares on Sep 14, 2022. In addition to Mr. John Willis Gibson Jr., B.Sc., BSc Geology, M.Sc., MSc Geology as the firm’s Chairman, CEO & Pres, Dr. Ryan Gillis Ezell Ph.D. serves as its Chief Operating Officer.


Institutional Ownership:

Through their ownership of 36.86% of FTK’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.08% of FTK, in contrast to 26.52% held by mutual funds. Shares owned by individuals account for 25.57%. As the largest shareholder in FTK with 10.05% of the stake, Nierenberg Investment Management holds 7,789,773 shares worth 7,789,773. A second-largest stockholder of FTK, North Sound Management, Inc., holds 5,573,036 shares, controlling over 7.19% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in FTK, holding 2,655,423 shares or 3.43% stake. With a 2.34% stake in FTK, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,811,795 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 1.22% of FTK stock, is the second-largest Mutual Fund holder. It holds 942,212 shares valued at 1.06 million. DFA US Core Equity 2 Portfolio holds 1.07% of the stake in FTK, owning 827,530 shares worth 0.93 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FTK since 1 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FTK analysts setting a high price target of $1.40 and a low target of $1.40, the average target price over the next 12 months is $1.40. Based on these targets, FTK could drop -0.71% to reach the target high and fall by -0.71% to reach the target low. Reaching the average price target will result in a decline of -0.71% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FTK will report FY 2022 earnings on 02/28/2024. Analysts have provided yearly estimates in a range of -$0.42 being high and -$0.42 being low. For FTK, this leads to a yearly average estimate of -$0.42. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Flotek Industries Inc. surprised analysts by -$0.15 when it reported -$0.21 EPS against a consensus estimate of -$0.06. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.11 and the low estimate is -$0.11. The average estimate for the next quarter is thus -$0.11.

Summary of Insider Activity:

Insiders traded FTK stock several times over the past three months with 5 Buys and 1 Sells. In these transactions, 359,934 shares were bought while 27,759 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 4,117,541 while 101,116 shares were sold.

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