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

Key Points

• Patterson-UTI Energy shares gapped down, opening at $10.37 after a $10.91 close and last trading around $10.72 on volume of about 1.37 million shares.
• Analysts are mixed: the stock has an average rating of Hold with an average target of $8.11, though several firms recently raised targets to $9 and a split of 5 Buys / 6 Holds / 2 Sells remains.
• The company beat quarterly EPS estimates (reported -$0.02 vs. -$0.11) and revenue slightly, raised its quarterly dividend to $0.10 (annualized $0.40, ~3.8% yield), and a director sold 164,775 shares on March 16.

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 $10.91, but opened at $10.37. Patterson-UTI Energy shares last traded at $10.7190, with a volume of 1,369,211 shares trading hands.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on PTEN. Citigroup increased their target price on Patterson-UTI Energy from $7.00 to $9.00 and gave the stock a "neutral" rating in a research note on Monday, February 9th. Bank of America restated a "buy" rating on shares of Patterson-UTI Energy in a research note on Monday, March 2nd. Royal Bank Of Canada upped 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. Weiss Ratings reiterated a "sell (d-)" rating on shares of Patterson-UTI Energy in a research report on Monday, December 29th. Finally, The Goldman Sachs Group lifted their target price on Patterson-UTI Energy from $7.00 to $9.00 and gave the stock a "buy" rating in a report on Wednesday, March 4th. Five equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $8.11.

Patterson-UTI Energy Price Performance

The company has a quick ratio of 1.46, a current ratio of 1.64 and a debt-to-equity ratio of 0.38. The company's fifty day moving average price is $8.40 and its 200 day moving average price is $6.79. The company has a market capitalization of $4.01 billion, a P/E ratio of -42.22 and a beta of 0.71.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last issued its quarterly earnings results on Wednesday, February 4th. The oil and gas company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.11) by $0.09. Patterson-UTI Energy had a negative return on equity of 1.50% and a negative net margin of 1.94%.The business had revenue of $1.15 billion during the quarter, compared to analysts' expectations of $1.10 billion. During the same period in the previous year, the company posted ($0.13) earnings per share. The firm's revenue for the quarter was down 1.0% compared to the same quarter last year. As a group, sell-side analysts forecast that Patterson-UTI Energy, Inc. will post -0.1 EPS for the current year.

Patterson-UTI Energy Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 2nd were issued a dividend of $0.10 per share. This is an increase from Patterson-UTI Energy's previous quarterly dividend of $0.08. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $0.40 annualized dividend and a dividend yield of 3.8%. Patterson-UTI Energy's payout ratio is currently -160.00%.

Insider Activity at Patterson-UTI Energy

In related news, Director Robert Wayne Drummond, Jr. sold 164,775 shares of the firm's stock in a transaction on Monday, March 16th. The stock was sold at an average price of $10.18, for a total value of $1,677,409.50. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders own 2.30% of the company's stock.

Institutional Investors Weigh In On Patterson-UTI Energy

A number of large investors have recently bought and sold shares of PTEN. Hsbc Holdings PLC increased its holdings in Patterson-UTI Energy by 16.9% in the 4th quarter. Hsbc Holdings PLC now owns 233,137 shares of the oil and gas company's stock valued at $1,418,000 after buying an additional 33,645 shares during the period. Rockefeller Capital Management L.P. lifted its holdings in shares of Patterson-UTI Energy by 187.6% during the 4th quarter. Rockefeller Capital Management L.P. now owns 6,591 shares of the oil and gas company's stock worth $40,000 after acquiring an additional 4,299 shares during the period. Corient Private Wealth LLC lifted its holdings in shares of Patterson-UTI Energy by 50.2% during the 4th quarter. Corient Private Wealth LLC now owns 49,961 shares of the oil and gas company's stock worth $305,000 after acquiring an additional 16,709 shares during the period. Caitong International Asset Management Co. Ltd boosted its position in shares of Patterson-UTI Energy by 268,475.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 10,743 shares of the oil and gas company's stock worth $66,000 after acquiring an additional 10,739 shares in the last quarter. Finally, Alpine Global Management LLC acquired a new stake in shares of Patterson-UTI Energy during the 4th quarter worth approximately $188,000. 97.91% of the stock is currently owned by institutional investors and hedge funds.

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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