Patterson-UTI Energy (NASDAQ:PTEN) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down Friday—closing previously at $10.41, opening at $9.80 and last trading around $9.40 on ~1.05M shares—leaving the stock near its 50‑day moving average ($9.63) and below the consensus target of $9.67.
• Several analysts raised price targets (Citigroup, Stifel, Susquehanna) but the consensus rating remains "Hold"

Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report)'s stock price gapped down before the market opened on Friday . The stock had previously closed at $10.41, but opened at $9.80. Patterson-UTI Energy shares last traded at $9.3950, with a volume of 1,049,031 shares traded.

Analysts Set New Price Targets

Several research analysts have recently issued reports on PTEN shares. Morgan Stanley raised their target price 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. Weiss Ratings restated a "sell (d-)" rating on shares of Patterson-UTI Energy in a report on Monday, December 29th. Citigroup raised their price objective on shares of Patterson-UTI Energy from $9.00 to $11.00 and gave the company a "neutral" rating in a research note on Wednesday. Stifel Nicolaus upped their target price on shares of Patterson-UTI Energy from $9.00 to $11.00 and gave the company a "buy" rating in a research report on Friday, February 6th. Finally, Susquehanna raised their price target on Patterson-UTI Energy from $10.00 to $13.00 and gave the stock a "positive" rating in a research report on Tuesday, April 7th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $9.67.

Patterson-UTI Energy Stock 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 stock has a market cap of $3.52 billion, a price-to-earnings ratio of -37.14 and a beta of 0.57. The stock's fifty day moving average is $9.63 and its 200-day moving average is $7.45.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last announced 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. The company had revenue of $1.15 billion during the quarter, compared to analyst estimates of $1.10 billion. Patterson-UTI Energy had a negative net margin of 1.94% and a negative return on equity of 1.50%. The firm's revenue was down 1.0% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.13) EPS. On average, analysts forecast that Patterson-UTI Energy, Inc. will post -0.1 EPS for the current year.

Patterson-UTI Energy Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, March 16th. Stockholders of record on Monday, March 2nd were given a dividend of $0.10 per share. This is an increase 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 4.3%. The ex-dividend date of this dividend was Monday, March 2nd. Patterson-UTI Energy's payout ratio is -160.00%.

Insider Buying and Selling at Patterson-UTI Energy

In related news, Director Robert Wayne Drummond, Jr. sold 164,775 shares of the business's stock in a transaction that occurred 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 document filed with the Securities & Exchange Commission, which is available through this link. 2.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in PTEN. O Shaughnessy Asset Management LLC lifted its position in Patterson-UTI Energy by 11.4% in the 4th quarter. O Shaughnessy Asset Management LLC now owns 13,901 shares of the oil and gas company's stock valued at $85,000 after acquiring an additional 1,420 shares in the last quarter. Aster Capital Management DIFC Ltd raised its stake in shares of Patterson-UTI Energy by 21.6% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 8,717 shares of the oil and gas company's stock valued at $53,000 after purchasing an additional 1,547 shares during the period. Sage Rhino Capital LLC lifted its holdings in shares of Patterson-UTI Energy by 6.6% in the fourth quarter. Sage Rhino Capital LLC now owns 25,371 shares of the oil and gas company's stock valued at $155,000 after purchasing an additional 1,575 shares in the last quarter. The Manufacturers Life Insurance Company boosted its position in shares of Patterson-UTI Energy by 0.5% during the second quarter. The Manufacturers Life Insurance Company now owns 370,476 shares of the oil and gas company's stock worth $2,197,000 after buying an additional 1,915 shares during the period. Finally, First Horizon Corp boosted its position in shares of 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 worth $34,000 after buying an additional 2,049 shares during the period. Institutional investors and hedge funds own 97.91% of the company's stock.

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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