Patterson-UTI Energy (NASDAQ:PTEN) Shares Gap Down - Here's What Happened

Key Points

• Patterson-UTI Energy shares gapped down on Monday, opening at $10.70 after closing at $11.49 and later trading around $10.84, a drop of about 6.2%.
• Analyst sentiment is mixed, with recent upgrades and higher price targets from firms like Zacks, RBC, Goldman Sachs, and Susquehanna, but the stock still carries an average Moderate Buy rating and a consensus target price of $12.30.
• The company reported better-than-expected quarterly EPS and revenue, but revenue still fell 12.7% year over year; meanwhile, executives sold shares recently, adding to investor caution.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report)'s share price gapped down prior to trading on Monday . The stock had previously closed at $11.49, but opened at $10.70. Patterson-UTI Energy shares last traded at $10.8350, with a volume of 923,526 shares.

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. Zacks Research upgraded shares of Patterson-UTI Energy from a "hold" rating to a "strong-buy" rating in a report on Friday, April 10th. Royal Bank Of Canada raised their price target on Patterson-UTI Energy from $14.00 to $15.00 and gave the stock an "outperform" rating in a research note on Friday, May 29th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Patterson-UTI Energy in a research note on Tuesday, May 26th. The Goldman Sachs Group raised their price target on Patterson-UTI Energy from $11.00 to $13.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. Finally, Susquehanna raised their price target on Patterson-UTI Energy from $13.00 to $14.00 and gave the stock a "positive" rating in a research note on Wednesday, May 27th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $12.30.

Patterson-UTI Energy Trading Down 6.2%

The firm has a 50-day moving average price of $11.42 and a 200-day moving average price of $9.07. The company has a debt-to-equity ratio of 0.39, a quick ratio of 1.63 and a current ratio of 1.84. The stock has a market cap of $4.09 billion, a PE ratio of -34.77 and a beta of 0.61.

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, topping the consensus estimate of ($0.10) by $0.04. The firm had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.11 billion. Patterson-UTI Energy had a negative return on equity of 2.32% and a negative net margin of 2.56%.The company's quarterly revenue was down 12.7% on a year-over-year basis. As a group, equities analysts anticipate that Patterson-UTI Energy, Inc. will post -0.15 EPS for the current fiscal year.

Patterson-UTI Energy Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be given a $0.10 dividend. This represents a $0.40 annualized dividend and a dividend yield of 3.7%. The ex-dividend date of this dividend is Monday, June 1st. Patterson-UTI Energy's payout ratio is currently -129.03%.

Insider Buying and Selling at Patterson-UTI Energy

In other Patterson-UTI Energy news, CEO William Andrew Hendricks, Jr. sold 200,000 shares of the business's stock in a transaction dated 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 transaction, the chief executive officer owned 2,542,474 shares of the company's stock, valued at approximately $29,594,397.36. The trade was a 7.29% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO James Michael Holcomb sold 150,000 shares of the business's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $11.47, for a total value of $1,720,500.00. Following the completion of the transaction, the chief operating officer directly owned 421,523 shares of the company's stock, valued at approximately $4,834,868.81. This trade represents a 26.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 1,007,844 shares of company stock worth $11,922,302. Insiders own 2.20% of the company's stock.

Hedge Funds Weigh In On Patterson-UTI Energy

A number of hedge funds have recently bought and sold shares of PTEN. Sourcerock Group LLC raised its position in 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 buying an additional 7,205,652 shares during the last quarter. Holocene Advisors LP increased its position in shares of Patterson-UTI Energy by 176.6% during the 3rd quarter. Holocene Advisors LP now owns 9,228,022 shares of the oil and gas company's stock valued at $47,801,000 after purchasing an additional 5,891,956 shares during the last quarter. Goldman Sachs Group Inc. increased its position in shares of Patterson-UTI Energy by 110.8% during the 4th quarter. Goldman Sachs Group Inc. now owns 10,559,219 shares of the oil and gas company's stock valued at $64,517,000 after purchasing an additional 5,551,276 shares during the last quarter. UBS Group AG increased its position in shares of Patterson-UTI Energy by 121.2% during the 4th quarter. UBS Group AG now owns 8,320,544 shares of the oil and gas company's stock valued at $50,839,000 after purchasing an additional 4,558,445 shares during the last quarter. Finally, Millennium Management LLC increased its position in shares of Patterson-UTI Energy by 97.7% during the 3rd quarter. Millennium Management LLC now owns 8,989,351 shares of the oil and gas company's stock valued at $46,565,000 after purchasing an additional 4,442,700 shares during the last quarter. Hedge funds and other institutional investors own 97.91% 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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