Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Receives Average Recommendation of "Hold" from Brokerages

Key Points

• Patterson-UTI Energy has a consensus analyst rating of “Hold” from 15 covering analysts, with an average 12-month price target of $12.40.
• Recent insider activity has been notable, including large share sales by Director Robert Wayne Drummond Jr. and CEO William Andrew Hendricks Jr.; insiders have sold 1,007,844 shares worth about $11.9 million over the past 90 days.
• The company reported better-than-expected quarterly earnings and revenue, but shares were down 5.5% as the stock traded at $9.52, below its recent moving average and well under the analysts’ average target.

Shares of Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report) have been given a consensus rating of "Hold" by the fifteen analysts that are currently covering the company, Marketbeat reports. Two research analysts have rated the stock with a sell rating, five have issued a hold rating and eight have issued a buy rating on the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $12.40.

Several analysts recently weighed in on the stock. Royal Bank Of Canada lifted their price objective on shares of Patterson-UTI Energy from $14.00 to $15.00 and gave the company an "outperform" rating in a research report on Friday, May 29th. Susquehanna lifted their price objective on shares of Patterson-UTI Energy from $13.00 to $14.00 and gave the company a "positive" rating in a research report on Wednesday, May 27th. Weiss Ratings reiterated a "sell (d+)" rating on shares of Patterson-UTI Energy in a research report on Tuesday, May 26th. Morgan Stanley lifted their price objective on shares of Patterson-UTI Energy from $7.00 to $10.00 and gave the company an "equal weight" rating in a research report on Wednesday, April 15th. Finally, Bank of America reiterated a "buy" rating on shares of Patterson-UTI Energy in a research report on Monday, March 2nd.

Insider Activity at Patterson-UTI Energy

In other Patterson-UTI Energy news, Director Robert Wayne Drummond, Jr. sold 322,699 shares of the business's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $12.04, for a total transaction of $3,885,295.96. Following the completion of the transaction, the director owned 1,190,248 shares in the company, valued at approximately $14,330,585.92. The trade was a 21.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO William Andrew Hendricks, Jr. sold 250,000 shares of the business's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $11.85, for a total value of $2,962,500.00. Following the transaction, the chief executive officer owned 2,823,103 shares of the company's stock, valued at $33,453,770.55. This trade represents a 8.14% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,007,844 shares of company stock worth $11,922,302 in the last ninety days. 2.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP boosted its position in Patterson-UTI Energy by 14.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 21,211,576 shares of the oil and gas company's stock worth $229,732,000 after acquiring an additional 2,745,872 shares during the period. American Century Companies Inc. boosted its position in Patterson-UTI Energy by 7.9% during the 3rd quarter. American Century Companies Inc. now owns 15,599,294 shares of the oil and gas company's stock worth $80,804,000 after acquiring an additional 1,135,704 shares during the period. State Street Corp boosted its position in Patterson-UTI Energy by 0.5% during the 4th quarter. State Street Corp now owns 15,265,086 shares of the oil and gas company's stock worth $93,270,000 after acquiring an additional 75,560 shares during the period. Sourcerock Group LLC boosted its position in Patterson-UTI Energy by 109.2% during the 2nd quarter. Sourcerock Group LLC now owns 13,803,775 shares of the oil and gas company's stock worth $81,856,000 after acquiring an additional 7,205,652 shares during the period. Finally, Goldman Sachs Group Inc. raised its stake in shares of Patterson-UTI Energy by 110.8% in the 4th quarter. Goldman Sachs Group Inc. now owns 10,559,219 shares of the oil and gas company's stock worth $64,517,000 after buying an additional 5,551,276 shares in the last quarter. Institutional investors and hedge funds own 97.91% of the company's stock.

Patterson-UTI Energy Stock Down 5.5%

Patterson-UTI Energy stock opened at $9.52 on Thursday. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.63 and a current ratio of 1.84. Patterson-UTI Energy has a one year low of $5.10 and a one year high of $13.08. The company has a 50-day simple moving average of $11.36 and a 200-day simple moving average of $9.30. The firm has a market capitalization of $3.61 billion, a P/E ratio of -30.71 and a beta of 0.61.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last issued its quarterly earnings data on Wednesday, April 22nd. The oil and gas company reported ($0.06) earnings per share for the quarter, beating the consensus estimate of ($0.10) by $0.04. The firm had revenue of $1.12 billion for the quarter, compared to the consensus estimate of $1.11 billion. Patterson-UTI Energy had a negative net margin of 2.56% and a negative return on equity of 2.32%. The firm's quarterly revenue was down 12.7% on a year-over-year basis. As a group, equities analysts expect that Patterson-UTI Energy will post -0.14 earnings per share for the current year.

Patterson-UTI Energy Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were given a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 4.2%. The ex-dividend date was Monday, June 1st. Patterson-UTI Energy's payout ratio is -129.03%.

Patterson-UTI Energy Company Profile

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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