Should You Avoid Flotek Industries Inc (FTK)?

Due to the fact that Flotek Industries Inc (NYSE:FTK) has experienced a declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of funds who sold off their positions entirely in the third quarter. Interestingly, Douglas T. Granat’s Trigran Investments dumped the biggest investment of all the hedgies watched by Insider Monkey, valued at close to $4.9 million in call options. Glenn Russell Dubin’s fund, Highbridge Capital Management, also said goodbye to its call options, about $1.3 million worth of options. These transactions are interesting, as total hedge fund interest dropped by 1 fund in the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Flotek Industries Inc (NYSE:FTK). These stocks are Rapid7 Inc (NASDAQ:RPD), Globe Specialty Metals, Inc. (NASDAQ:GSM), Astronics Corporation (NASDAQ:ATRO), and Advantage Oil & Gas Ltd (USA) (NYSE:AAV). All of these stocks’ market caps resemble Flotek Industries Inc (NYSE:FTK)’s market cap.

As you can see, these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $174 million in Flotek Industries Inc (NYSE:FTK)’s case. Globe Specialty Metals, Inc. (NASDAQ:GSM) is the most popular stock in this table. On the other hand, Rapid7 Inc (NASDAQ:RPD) is the least popular one with only 5 bullish hedge fund positions. Flotek Industries Inc (NYSE:FTK) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Globe Specialty Metals, Inc. (NASDAQ:GSM) might be a better candidate to consider a long position.