Patterson-UTI Energy (NASDAQ:PTEN) Issues Quarterly Earnings Results

Key Points

• Patterson-UTI Energy reported quarterly EPS of $0.04, matching analysts’ consensus estimate, though the company posted a negative net margin of 1.92% and negative return on equity of 1.68%.
• Shares rose to $12.60, near the company’s 52-week high of $13.39. Analysts hold a “Moderate Buy” consensus rating with an average price target of $13.14.
• Insiders sold 1.027 million shares worth approximately $12.7 million over the past three months, including stock sales by the CEO and an executive vice president.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) posted its quarterly earnings data on Wednesday. The oil and gas company reported $0.04 EPS for the quarter, hitting the consensus estimate of $0.04, Zacks reports. Patterson-UTI Energy had a negative net margin of 1.92% and a negative return on equity of 1.68%.

Patterson-UTI Energy Stock Performance

Shares of NASDAQ PTEN traded up $0.39 during trading on Wednesday, reaching $12.60. 6,125,107 shares of the company traded hands, compared to its average volume of 9,446,668. The firm has a 50 day simple moving average of $11.84 and a 200-day simple moving average of $10.43. The company has a quick ratio of 1.57, a current ratio of 1.75 and a debt-to-equity ratio of 0.40. The stock has a market capitalization of $4.81 billion, a PE ratio of -54.78 and a beta of 0.77. Patterson-UTI Energy has a 52-week low of $5.24 and a 52-week high of $13.39.

Insider Activity at Patterson-UTI Energy

In related news, CEO William Andrew Hendricks, Jr. sold 250,000 shares of Patterson-UTI Energy stock in a transaction on Friday, September 18th. The stock was sold at an average price of $11.91, for a total value of $2,977,500.00. Following the completion of the sale, the chief executive officer owned 2,042,474 shares of the company's stock, valued at $24,325,865.34. The trade was a 10.91% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Seth Wexler sold 120,000 shares of the company's stock in a transaction on Tuesday, September 1st. The shares were sold at an average price of $12.75, for a total value of $1,530,000.00. Following the sale, the executive vice president owned 404,582 shares of the company's stock, valued at approximately $5,158,420.50. This trade represents a 22.88% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,027,000 shares of company stock valued at $12,698,780. Insiders own 2.20% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently weighed in on the company. JPMorgan Chase & Co. upgraded Patterson-UTI Energy from an "underweight" rating to a "neutral" rating and set a $12.00 price target on the stock in a research note on Friday, July 31st. Zacks Research cut Patterson-UTI Energy from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 27th. Susquehanna boosted their target price on Patterson-UTI Energy from $12.00 to $13.00 and gave the stock a "positive" rating in a report on Monday, August 3rd. Weiss Ratings raised Patterson-UTI Energy from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, October 8th. Finally, UBS Group assumed coverage on shares of Patterson-UTI Energy in a research note on Friday, October 2nd. They issued a "neutral" rating and a $13.00 price target on the stock. Nine investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, Patterson-UTI Energy presently has a consensus rating of "Moderate Buy" and a consensus target price of $13.14.

Patterson-UTI Energy Company Profile

Patterson-UTI Energy, Inc is an oilfield services company that provides drilling, completion and production-related services to oil and natural gas exploration and production companies. Its operations are primarily focused on onshore oil and gas development in the United States.

The company provides contract land drilling services through a fleet of rigs, as well as directional drilling and related technologies used to guide wellbores. Patterson-UTI also offers pressure pumping and hydraulic fracturing, wireline, well-completion, equipment rental and other services that support the development and maintenance of unconventional wells.

Patterson-UTI expanded its completion-services business through its 2023 merger with NexTier Oilfield Solutions.

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