Flotek Stock Soars on Florida Chemical Sale

FTK stock has been trending lower since April

Jan 11, 2019 at 9:44 AM
facebook twitter linkedin


Houston-based chemical company Flotek Industries Inc (NYSE:FTK) said it is selling its consumer and industrial chemistry technologies business, Florida Chemical Company, to Archer Daniels Midland (ADM) for $175 million -- more than double the company's market cap of 80.42 million at last night's close. As such, FTK shares have more than doubled out of the gate, last seen up 100.7% at $2.83, near the top of the Big Board.

Longer term, FTK was trading near $6 around this time last year, before a late-April bear gap in reaction to dismal guidance put the stock on a steady path lower. Since its April 20 close at $6.61, Flotek has shed 57%, and hit an eight-year low of $0.95 on Dec. 24.

Short sellers have been in the driver's seat during this downtrend. The 7.7 million FTK shares currently controlled by these bearish bettors represents 14.4% of the stock's available float, or 8.9 times the average daily pace of trading.

Elsewhere, the two analysts in coverage are split, with one maintaining a "buy" rating, and the other one a "hold." Meanwhile, the average 12-month price target of $3 is a slim 6% premium to FTK stock's current price.

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

 


 


 
Special Offers from Schaeffer's Trading Partners