Patterson-UTI Energy (NASDAQ:PTEN) Raised to Neutral at JPMorgan Chase & Co.

Key Points

• JPMorgan upgraded Patterson-UTI Energy to “neutral” from “underweight” and set a $12 price target, implying approximately 21.8% upside from the reported share price.
• Analyst sentiment is generally positive: the stock has a “Moderate Buy” consensus rating and an average price target of $12.75, with Barclays also upgrading it to “overweight” and raising its target to $15.
• Although quarterly revenue of $1.23 billion exceeded estimates, GAAP earnings missed expectations with a $0.05-per-share loss; the company also continues to face negative margins and recent insider selling.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) was upgraded by investment analysts at JPMorgan Chase & Co. from an "underweight" rating to a "neutral" rating in a research note issued to investors on Friday, MarketBeat Ratings reports. The brokerage currently has a $12.00 target price on the oil and gas company's stock. JPMorgan Chase & Co.'s target price indicates a potential upside of 21.83% from the company's current price.

Several other analysts also recently commented on PTEN. Barclays raised shares of Patterson-UTI Energy from an "equal weight" rating to an "overweight" rating and boosted their target price for the stock from $10.00 to $15.00 in a research report on Thursday, May 7th. Susquehanna cut their price target on shares of Patterson-UTI Energy from $14.00 to $12.00 and set a "positive" rating on the stock in a report on Wednesday, July 8th. 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 note on Wednesday, April 15th. 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 report on Monday, June 29th. Finally, KeyCorp raised shares of Patterson-UTI Energy to an "overweight" rating in a research report on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, Patterson-UTI Energy presently has an average rating of "Moderate Buy" and a consensus price target of $12.75.

Patterson-UTI Energy Trading Up 5.6%

NASDAQ:PTEN opened at $9.85 on Friday. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.84 and a quick ratio of 1.63. Patterson-UTI Energy has a fifty-two week low of $5.10 and a fifty-two week high of $13.08. The stock's 50-day moving average is $10.37 and its two-hundred day moving average is $9.92. The stock has a market cap of $3.74 billion, a PE ratio of -42.83 and a beta of 0.62.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The oil and gas company reported ($0.05) earnings per share for the quarter, missing the consensus estimate of ($0.04) by ($0.01). Patterson-UTI Energy had a negative net margin of 1.92% and a negative return on equity of 1.67%. The company had revenue of $1.23 billion during the quarter, compared to analyst estimates of $1.15 billion. During the same quarter in the prior year, the company posted ($0.13) EPS. The firm's quarterly revenue was up .7% compared to the same quarter last year. As a group, equities research analysts forecast that Patterson-UTI Energy will post -0.06 earnings per share for the current fiscal year.

Insider Buying and Selling at Patterson-UTI Energy

In related news, CEO William Andrew Hendricks, Jr. sold 200,000 shares of the company's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $11.64, for a total transaction of $2,328,000.00. Following the completion of the transaction, the chief executive officer directly owned 2,542,474 shares in the company, valued at $29,594,397.36. This represents a 7.29% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Robert Wayne Drummond, Jr. sold 61,475 shares of the firm's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $12.02, for a total transaction of $738,929.50. Following the completion of the sale, the director owned 1,128,773 shares in the company, valued at $13,567,851.46. This represents a 5.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 435,145 shares of company stock valued at $5,074,506 in the last three months. 2.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Patterson-UTI Energy

A number of hedge funds have recently made changes to their positions in PTEN. Quarry LP raised its position in Patterson-UTI Energy by 360.3% in the third quarter. Quarry LP now owns 4,934 shares of the oil and gas company's stock worth $26,000 after purchasing an additional 3,862 shares in the last quarter. First Horizon Corp boosted its holdings in Patterson-UTI Energy by 58.5% during the fourth quarter. First Horizon Corp now owns 5,554 shares of the oil and gas company's stock valued at $34,000 after purchasing an additional 2,049 shares in the last quarter. Rockefeller Capital Management L.P. grew its stake in shares of Patterson-UTI Energy by 187.6% in the 4th quarter. Rockefeller Capital Management L.P. now owns 6,591 shares of the oil and gas company's stock valued at $40,000 after purchasing an additional 4,299 shares during the period. Torren Management LLC bought a new stake in shares of Patterson-UTI Energy in the 4th quarter valued at approximately $44,000. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of Patterson-UTI Energy by 494.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 8,621 shares of the oil and gas company's stock worth $51,000 after buying an additional 7,171 shares in the last quarter. Institutional investors and hedge funds own 97.91% of the company's stock.

Patterson-UTI Energy News Roundup

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

• Positive Sentiment: Zacks upgraded PTEN from “hold” to “strong-buy,” potentially improving sentiment and attracting additional buying interest. Zacks.com
• Positive Sentiment: Second-quarter revenue reached $1.23 billion, beating estimates of approximately $1.15 billion and rising 0.7% year over year. The company’s loss also narrowed substantially from the prior-year period. Patterson-UTI Energy Fiscal Q2 Loss Narrows, Revenue Rises
• Positive Sentiment: Management’s earnings call highlighted pricing power, suggesting Patterson-UTI may be improving its ability to protect or raise service pricing despite challenging conditions in the oilfield-services market. Patterson-UTI Energy Q2 Call Shows Pricing Power
• Positive Sentiment: The company declared a $0.10-per-share quarterly dividend, equivalent to $0.40 annually and an indicated yield of about 4.1%, supporting the stock’s income appeal.
• Neutral Sentiment: Reported results varied by presentation: adjusted earnings were described as breakeven and ahead of estimates, while GAAP EPS was a $0.05 loss. Investors will likely focus on the quality and sustainability of the improvement. Patterson-UTI Q2 Earnings
• Negative Sentiment: GAAP EPS missed consensus by $0.01, and Patterson-UTI continues to report a negative net margin and negative return on equity. Persistent losses and oilfield-sector cyclicality remain important risks.

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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