Flotek Industries, Inc. (FTK) Stock Next Stop, $2.93?

Shares of Flotek Industries, Inc. (FTK) have gained 47.6% since the company’s Mar-19 earnings report. Over the past 12 fiscal quarters, Flotek Industries, Inc. (NYSE:FTK) has topped consensus earnings estimates in 4 quarters (33%), missed earnings in 7 quarters (58%), whereas at 1 occasion EPS met analyst expectations. FTK last reported earnings on November 06, 2018 when it released Sep-18 results that exceeded expectations. The company raked in -$0.06 per share, -99.87% change on the same period last year. That was better than consensus for -$0.11. Revenue for the recent quarter stood at $70.99 million, down -11% on last year and above the $66.9 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $63.4 million to $63.4 million, which should be compared with $98.2 million generated last year. EPS is seen in a range of -$0.06 to -$0.04, against the $0.09 reported a year ago.

FTK’s 50 day simple moving average (SMA 50) price is $1.46 and its 200-day simple moving average (SMA 200) price is $2.78. The company’s stock currently has a total float of 0 shares. Its weekly volatility is hovering around 11.17% and felt 9.9% volatility in price over a month. On the upside, the share price will test short term resistance at around $2.93. On a downside, the stock is likely to find some support, which begins at $2.55. The failure to get near-term support could push it to $2.35.

Separately, it has been reported that multiple insider activity took place at Flotek Industries, Inc. (FTK). EVP Operations Snively Joshua A acquired 10,216 shares for $455,516 in transaction occurred on 2018/05/16. After making this transaction, the EVP Operations owns a direct stake of 34,837 shares, worth $1,257,224, as per the last closing price. On 2018/05/16 Walton H. Richard, Chief Accounting Officer at FTK, purchased 20,000 shares at an average price of $3.38 per share. The new stake is valued at $763,270.

EVP Operations, Snively Joshua A had invested in 10,216 shares for $455,516 through a trade on 2018/05/16. Following this activity, the insider holds 34,837 shares worth $1,257,224 as of recent close. Wall Street’s most bullish Flotek Industries, Inc. (NYSE:FTK) analysts are predicting the share price to blow past $3 per share during the next 12 months. The current median share price forecast by them is $3, suggesting that the stock could increase 8.7% in that time frame. The average price target of $3 calls for a nearly 8.7% increase in the stock price.

It had seen a negative analyst call from Seaport Global Securities, which downgraded the stock from Buy to Neutral on August 08. Analysts at Seaport Global Securities, shed their negative views on January 20 by lifting it fromAccumulate to Speculative Buy. The stock won favor of Oppenheimer analysts who expressed their confidence in it using an upgrade from Underperform to Perform on July 27. Oppenheimer, reiterated their call for Underperform, on April 24. On the other hand, they had set new target price to $10 versus $12.

Also, it is trading at rather inexpensive levels at just over 0.83x price/book and 0.31x price/sales. Compared to others, Flotek Industries, Inc. is in a different league with regards to profitability, having net margins of -33.2%. To put some perspective around this, the industry’s average net margin is -3.27%. FTK’s ROE is -38%, which is also considerably worse than the industry’s ROE of 3.7%. It’s also very liquid in the near term, with a current ratio of 1.6. The stock has a debt/capital of 0.28.

Flotek Industries, Inc. (NYSE:FTK) sank as low as $2.52 Friday before getting settled at $2.76. The 95.74 percent increase called for market cap to move at $80.4M. The price went up as high as $2.52 before retreating. Trading activity significantly improved as the volume at ready counter increased to 22,353,800 shares versus 1,945,250 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,480,300 shares. The stock is now 190.53% above against its bear-market low of $0.95 on December 24, 2018. It has retreated -145.29% since it’s 52-week high of $6.77 reached in April. Now the market price is down -49.91% on the year and up 153.21% YTD.