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

Key Points

• Patterson-UTI reported Q EPS of ($0.06), beating estimates by $0.02, but remains unprofitable with a negative return on equity, negative net margin and a negative P/E (−43.24).
• The company raised its quarterly dividend to $0.10 (from $0.08), implying an annualized $0.40 and a ~3.7% yield despite a negative payout ratio (−160%).
• Analysts are mixed: MarketBeat's consensus is a Hold with a $9.90 target while several firms have raised targets to $11 and upgraded ratings; the stock trades around $10.81, insiders recently sold shares even though institutional ownership is very high (~97.9%).

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) released its quarterly earnings results on Wednesday. The oil and gas company reported ($0.06) EPS for the quarter, beating analysts' consensus estimates of ($0.08) by $0.02, Zacks reports. Patterson-UTI Energy had a negative return on equity of 1.50% and a negative net margin of 1.94%.

Patterson-UTI Energy Stock Performance

Shares of PTEN stock traded up $0.25 during mid-day trading on Wednesday, reaching $10.81. The stock had a trading volume of 12,210,542 shares, compared to its average volume of 11,293,052. The business's fifty day moving average is $9.71 and its 200-day moving average is $7.57. The company has a current ratio of 1.64, a quick ratio of 1.46 and a debt-to-equity ratio of 0.38. The firm has a market cap of $4.10 billion, a price-to-earnings ratio of -43.24 and a beta of 0.57. Patterson-UTI Energy has a 1-year low of $5.10 and a 1-year high of $11.75.

Patterson-UTI Energy Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 2nd were issued a $0.10 dividend. This is a boost from Patterson-UTI Energy's previous quarterly dividend of $0.08. This represents a $0.40 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date of this dividend was Monday, March 2nd. Patterson-UTI Energy's dividend payout ratio is currently -160.00%.

Analyst Upgrades and Downgrades

PTEN has been the subject of a number of research analyst reports. Citigroup increased their price target on Patterson-UTI Energy from $9.00 to $11.00 and gave the company a "neutral" rating in a research note on Wednesday, April 15th. Bank of America reissued a "buy" rating on shares of Patterson-UTI Energy in a report on Monday, March 2nd. Stifel Nicolaus increased their price objective on Patterson-UTI Energy from $9.00 to $11.00 and gave the company a "buy" rating in a report on Friday, February 6th. Zacks Research raised Patterson-UTI Energy from a "hold" rating to a "strong-buy" rating in a report on Friday, April 10th. Finally, Royal Bank Of Canada increased their price objective on Patterson-UTI Energy from $8.00 to $9.00 and gave the company an "outperform" rating in a report on Friday, February 6th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $9.90.

Insider Buying and Selling

In related news, Director Robert Wayne Drummond, Jr. sold 164,775 shares of the firm's stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $10.18, for a total transaction of $1,677,409.50. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 2.30% of the stock is currently owned by company insiders.

Institutional Trading of Patterson-UTI Energy

Several hedge funds and other institutional investors have recently bought and sold shares of PTEN. Sourcerock Group LLC grew its holdings in Patterson-UTI Energy by 109.2% during the second 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. Goldman Sachs Group Inc. grew its holdings in Patterson-UTI Energy by 110.8% during the fourth quarter. Goldman Sachs Group Inc. now owns 10,559,219 shares of the oil and gas company's stock worth $64,517,000 after acquiring an additional 5,551,276 shares during the period. Millennium Management LLC grew its holdings in Patterson-UTI Energy by 97.7% during the third quarter. Millennium Management LLC now owns 8,989,351 shares of the oil and gas company's stock worth $46,565,000 after acquiring an additional 4,442,700 shares during the period. Holocene Advisors LP grew its holdings in Patterson-UTI Energy by 7,113.3% during the second quarter. Holocene Advisors LP now owns 3,336,066 shares of the oil and gas company's stock worth $19,783,000 after acquiring an additional 3,289,817 shares during the period. Finally, BNP Paribas Financial Markets grew its holdings in Patterson-UTI Energy by 444.2% during the second quarter. BNP Paribas Financial Markets now owns 3,020,212 shares of the oil and gas company's stock worth $17,910,000 after acquiring an additional 2,465,209 shares during the period. 97.91% of the stock is owned by institutional investors and hedge funds.

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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