Patterson-UTI Energy (NASDAQ:PTEN) Sets New 52-Week High - Still a Buy?

Key Points

• Patterson-UTI Energy hit a new 52-week high, trading as high as $12.67, after rising about 3.1% on the day.
• Several analysts turned more bullish, including price-target hikes from Goldman Sachs, Susquehanna, and RBC; the stock now carries a Moderate Buy consensus with an average target of $11.80.
• The company recently beat quarterly EPS expectations and declared a $0.10 per share quarterly dividend, though insiders have been selling shares and the dividend payout ratio remains negative.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report)'s share price reached a new 52-week high on Monday . The stock traded as high as $12.67 and last traded at $12.7220, with a volume of 934546 shares traded. The stock had previously closed at $12.42.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. The Goldman Sachs Group upped their price target on shares of Patterson-UTI Energy from $9.00 to $11.00 and gave the stock a "buy" rating in a report on Wednesday, April 15th. Capital One Financial raised shares of Patterson-UTI Energy from an "equal weight" rating to an "overweight" rating and set a $12.00 price target for the company in a research note on Monday, April 20th. Susquehanna boosted their price target on shares of Patterson-UTI Energy from $10.00 to $13.00 and gave the stock a "positive" rating in a research note on Tuesday, April 7th. Royal Bank Of Canada boosted their price target on shares of Patterson-UTI Energy from $12.00 to $14.00 and gave the stock an "outperform" rating in a research note on Friday, April 24th. Finally, Zacks Research raised shares of Patterson-UTI Energy from a "hold" rating to a "strong-buy" rating in a research note on Friday, April 10th. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $11.80.

Patterson-UTI Energy Trading Up 3.1%

The firm's 50-day simple moving average is $10.79 and its 200-day simple moving average is $8.23. The company has a quick ratio of 1.63, a current ratio of 1.84 and a debt-to-equity ratio of 0.39. The firm has a market capitalization of $4.86 billion, a PE ratio of -41.30 and a beta of 0.64.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The oil and gas company reported ($0.06) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.10) by $0.04. Patterson-UTI Energy had a negative net margin of 2.56% and a negative return on equity of 2.32%. The business had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.11 billion. Patterson-UTI Energy's revenue was down 12.7% on a year-over-year basis. Equities analysts expect that Patterson-UTI Energy, Inc. will post -0.21 earnings per share for the current year.

Patterson-UTI Energy Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be issued a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a yield of 3.1%. The ex-dividend date is Monday, June 1st. Patterson-UTI Energy's dividend payout ratio is currently -129.03%.

Insider Activity at Patterson-UTI Energy

In other Patterson-UTI Energy news, Director Cesar Jaime sold 10,000 shares of the firm's stock in a transaction dated Tuesday, May 5th. The shares were sold at an average price of $12.29, for a total value of $122,900.00. Following the completion of the sale, the director directly owned 77,462 shares in the company, valued at $952,007.98. This trade represents a 11.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO William Andrew Hendricks, Jr. sold 250,000 shares of the firm's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $11.85, for a total transaction of $2,962,500.00. Following the completion of the sale, 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 808,949 shares of company stock worth $9,387,035 in the last three months. 2.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of PTEN. Sourcerock Group LLC increased its stake in shares of Patterson-UTI Energy by 109.2% in 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 in the last quarter. Holocene Advisors LP increased its stake in shares of Patterson-UTI Energy by 176.6% in the 3rd quarter. Holocene Advisors LP now owns 9,228,022 shares of the oil and gas company's stock worth $47,801,000 after acquiring an additional 5,891,956 shares in the last quarter. Goldman Sachs Group Inc. increased 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 acquiring an additional 5,551,276 shares in the last quarter. UBS Group AG increased its stake in shares of Patterson-UTI Energy by 121.2% in the 4th quarter. UBS Group AG now owns 8,320,544 shares of the oil and gas company's stock worth $50,839,000 after acquiring an additional 4,558,445 shares in the last quarter. Finally, Millennium Management LLC increased its stake in shares of Patterson-UTI Energy by 97.7% in the 3rd 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 in the last quarter. 97.91% of the stock is currently owned by institutional investors.

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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