Insider Spends US$1.7m Buying More Shares In Flotek Industries

Flotek Industries, Inc. (NYSE:FTK) shareholders (or potential shareholders) will be happy to see that the Director, Matthew Wilks, recently bought a whopping US$1.7m worth of stock, at a price of US$12.11. That increased their holding by a full 200%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

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Flotek Industries Insider Transactions Over The Last Year

In fact, the recent purchase by Matthew Wilks was the biggest purchase of Flotek Industries shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$15.64. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Matthew Wilks bought 149.77k shares over the last 12 months at an average price of US$12.30. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Flotek Industries

Flotek Industries is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.7% of Flotek Industries shares, worth about US$13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Flotek Industries Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Flotek Industries shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Flotek Industries. At Simply Wall St, we found 1 warning sign for Flotek Industries that deserve your attention before buying any shares.

Of course Flotek Industries may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.