Flotek Industries versus peers and the industry
Flotek Industries (FTK) is an oilfield equipment and services (or OFS) company operating in the United States and international markets. It also provides chemicals used in the consumer industry. On February 24, Flotek Industries was trading at $12.98—up ~92% in the past year. We’ll find out why in this series.
What does Flotek Industries’ stock price movement tell us?
In the past year, Flotek Industries’ stock price has generally trended up. This trend primarily reflects the rise in crude oil prices. We’ll discuss later in this series the factors that have moved OFS stocks. FTK’s revenues have been resilient in the past four quarters, until 4Q16, when other OFS companies’ revenues stumbled. Although FTK’s net loss deteriorated further in 4Q16 over 3Q16, it turned free cash flow–positive in 4Q16. Read the following parts to learn more.
Flotek Industries’ moving averages
On February 24, Flotek Industries’ stock price was trading ~24% above its 50-day moving average (or DMA). It’s also trading 2.7% above its 200-day moving average.
Moving averages exhibit smoother trends following a stock’s price movement. A 50 DMA is a short-term MA, while a 200 DMA shows a long-term trend. FTK’s long-run MA has crossed over the short-run MA from below since the beginning of 2017, exhibiting long-term strength in FTK’s stock price. Also, FTK’s stock price moving above the short-run MA in February signals a short-term tailwind to FTK’s stock price.
In this series, we’ll discuss Flotek Industries’ top-line and bottom-line growth, industry indicators, FTK’s balance sheet, and its valuation multiples. We’ll start with its management comments in the next part.