Insiders Of Flotek Industries Reap Rewards After Their Investment Jumps Another US$717k

Last week, Flotek Industries, Inc. (NYSE:FTK) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 15% last week, resulting in a US$66m increase in the company's market worth, implying a 39% gain on their initial purchase. In other words, the original US$1.84m purchase is now worth US$2.56m.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Flotek Industries Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Matthew Wilks bought US$1.7m worth of shares at a price of US$12.25 per share. We do like to see buying, but this purchase was made at well below the current price of US$17.08. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Matthew Wilks purchased 149.77k shares over the year. The average price per share was US$12.30. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out 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.

Does Flotek Industries Boast High 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.9% of Flotek Industries shares, worth about US$14m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Flotek Industries Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Flotek Industries insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Flotek Industries you should be aware of, and 1 of them is a bit unpleasant.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.