Arrowstreet Capital Limited Partnership Makes New Investment in Patterson-UTI Energy, Inc. $PTEN

Key Points

• Arrowstreet Capital acquired 733,020 shares of Patterson-UTI Energy worth approximately $7.94 million, taking a 0.19% stake. Institutional investors and hedge funds collectively own 97.91% of the company.
• Analyst sentiment is generally positive, with MarketBeat reporting a “Moderate Buy” consensus and an average price target of $12.75, although some analysts recently lowered targets and Weiss Ratings maintained a sell rating.
• Patterson-UTI reported second-quarter revenue of $1.23 billion, beating estimates, but missed earnings expectations with a $0.05 per-share loss. The company also declared a quarterly dividend of $0.10 per share, representing an annualized yield of roughly 3.8%.

Arrowstreet Capital Limited Partnership acquired a new position in shares of Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 733,020 shares of the oil and gas company's stock, valued at approximately $7,939,000. Arrowstreet Capital Limited Partnership owned 0.19% of Patterson-UTI Energy at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Tudor Investment Corp ET AL purchased a new position in Patterson-UTI Energy in the third quarter worth approximately $2,206,000. SG Americas Securities LLC grew its holdings in Patterson-UTI Energy by 141.3% during the 4th quarter. SG Americas Securities LLC now owns 183,804 shares of the oil and gas company's stock worth $1,123,000 after acquiring an additional 107,638 shares in the last quarter. Convergence Investment Partners LLC purchased a new stake in shares of Patterson-UTI Energy in the 1st quarter valued at approximately $1,325,000. Prescott Group Capital Management L.L.C. purchased a new stake in shares of Patterson-UTI Energy in the 4th quarter valued at approximately $1,161,000. Finally, Principal Financial Group Inc. raised its holdings in shares of Patterson-UTI Energy by 92.6% in the 4th quarter. Principal Financial Group Inc. now owns 8,515,581 shares of the oil and gas company's stock valued at $52,030,000 after purchasing an additional 4,093,636 shares in the last quarter. 97.91% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on PTEN shares. Citigroup decreased their price objective on shares of Patterson-UTI Energy from $11.00 to $10.50 and set a "neutral" rating for the company in a research report on Monday, June 29th. Royal Bank Of Canada increased their target price on Patterson-UTI Energy from $14.00 to $15.00 and gave the company an "outperform" rating in a report on Friday, May 29th. Barclays upgraded Patterson-UTI Energy from an "equal weight" rating to an "overweight" rating and raised their price target for the company from $10.00 to $15.00 in a research note on Thursday, May 7th. Susquehanna decreased their price target on Patterson-UTI Energy from $14.00 to $12.00 and set a "positive" rating for the company in a report on Wednesday, July 8th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Patterson-UTI Energy in a research report on Tuesday, May 26th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Patterson-UTI Energy has a consensus rating of "Moderate Buy" and an average target price of $12.75.

Patterson-UTI Energy News Roundup

Here are the key news stories impacting Patterson-UTI Energy this week:

• Positive Sentiment: JPMorgan upgraded PTEN from “underweight” to “neutral” and set a $12 price target, implying further upside from recent trading levels. Benzinga
• Positive Sentiment: Zacks Research raised its rating from “hold” to “strong-buy,” adding to the positive analyst sentiment surrounding the stock. Zacks.com
• Positive Sentiment: Unusually high options activity points to increased bullish interest: investors purchased 8,770 call options, roughly 214% above the typical daily volume.
• Positive Sentiment: The company declared a quarterly dividend of $0.10 per share, equivalent to a roughly 3.9% annualized yield, supporting the stock’s income appeal.
• Positive Sentiment: Second-quarter revenue reached $1.23 billion, exceeding estimates by approximately $80 million and rising modestly year over year. Management’s earnings call also highlighted pricing power. Patterson-UTI Energy Fiscal Q2 Loss Narrows, Revenue Rises

Patterson-UTI Energy Price Performance

Shares of NASDAQ:PTEN opened at $10.48 on Friday. The company's fifty day moving average price is $10.33 and its 200 day moving average price is $9.92. Patterson-UTI Energy, Inc. has a 12 month low of $5.10 and a 12 month high of $13.08. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.75 and a quick ratio of 1.63. The firm has a market capitalization of $3.98 billion, a P/E ratio of -45.57 and a beta of 0.62.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The oil and gas company reported ($0.05) earnings per share for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.01). Patterson-UTI Energy had a negative net margin of 1.92% and a negative return on equity of 1.68%. The company had revenue of $1.23 billion during the quarter, compared to analysts' expectations of $1.15 billion. During the same period last year, the firm earned ($0.13) earnings per share. Patterson-UTI Energy's revenue was up .7% on a year-over-year basis. As a group, sell-side analysts predict that Patterson-UTI Energy, Inc. will post -0.06 earnings per share for the current fiscal year.

Patterson-UTI Energy Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be issued a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 3.8%. The ex-dividend date of this dividend is Tuesday, September 1st. Patterson-UTI Energy's payout ratio is presently -173.91%.

Insiders Place Their Bets

In other news, CEO William Andrew Hendricks, Jr. sold 200,000 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $11.64, for a total value of $2,328,000.00. Following the completion of the sale, the chief executive officer directly owned 2,542,474 shares of the company's stock, valued at approximately $29,594,397.36. This represents a 7.29% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Forrest C. Robinson sold 13,670 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $12.01, for a total transaction of $164,176.70. Following the transaction, the chief accounting officer owned 56,842 shares in the company, valued at approximately $682,672.42. This trade represents a 19.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 435,145 shares of company stock worth $5,074,506. Corporate insiders own 2.20% of the company's stock.

About Patterson-UTI Energy

Patterson-UTI Energy provides a comprehensive suite of onshore contract drilling and pressure pumping services to exploration and production companies in North America. The company's core offerings include land-based drilling rigs, directional drilling, hydraulic fracturing services, downhole tool rental and well-servicing equipment. By integrating drilling and completion capabilities, Patterson-UTI Energy offers operators a streamlined solution designed to improve operational efficiency and well performance.

Headquartered in Houston, Texas, Patterson-UTI Energy traces its origins to its founding in 1978 and was later incorporated in Delaware in 1996.

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