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

Key Points

• Patterson-UTI (PTEN) gapped down, opening at $11.55 vs a prior close of $12.41 and trading down about 6.7% amid heavy volume; analysts are mixed with an average "Hold" rating and an average target of $11.30 despite several recent target upgrades.
• Q1 results slightly beat expectations—EPS of ($0.06) vs ($0.10) estimate and revenue of $1.12B vs $1.11B—but revenue fell 12.7% year-over-year and the company remains unprofitable with a projected -$0.22 EPS for the fiscal year.
• Significant insider selling occurred recently (CEO sold 250,000 shares; a director sold 61,475), with insiders offloading about 798,949 shares worth ~$9.26M over the last quarter while insiders still own 2.20% of the stock.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $12.41, but opened at $11.55. Patterson-UTI Energy shares last traded at $11.7770, with a volume of 1,295,679 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages have weighed in on PTEN. Royal Bank Of Canada upped their target price on shares of Patterson-UTI Energy from $12.00 to $14.00 and gave the stock an "outperform" rating in a research report on Friday, April 24th. Piper Sandler boosted their price target on Patterson-UTI Energy from $10.00 to $12.00 and gave the stock a "neutral" rating in a research note on Monday, April 27th. The Goldman Sachs Group upped their price target on 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 Patterson-UTI Energy from an "equal weight" rating to an "overweight" rating and set a $12.00 price objective for the company in a research note on Monday, April 20th. Finally, Barclays boosted their target price on Patterson-UTI Energy from $8.00 to $10.00 and gave the stock an "equal weight" rating in a research report on Monday, April 27th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Patterson-UTI Energy has an average rating of "Hold" and an average target price of $11.30.

Patterson-UTI Energy Trading Down 6.7%

The company has a market cap of $4.40 billion, a price-to-earnings ratio of -37.35 and a beta of 0.64. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.84 and a quick ratio of 1.63. The business's 50-day simple moving average is $10.27 and its 200-day simple moving average is $7.91.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last posted its quarterly earnings data on Wednesday, April 22nd. The oil and gas company reported ($0.06) EPS for the quarter, beating analysts' consensus estimates of ($0.10) by $0.04. The business had revenue of $1.12 billion for 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 revenue was down 12.7% on a year-over-year basis. Research analysts predict that Patterson-UTI Energy, Inc. will post -0.22 earnings per share for the current fiscal year.

Patterson-UTI Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be paid a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 3.5%. The ex-dividend date of this dividend is Monday, June 1st. Patterson-UTI Energy's dividend payout ratio (DPR) is currently -129.03%.

Insider Transactions at Patterson-UTI Energy

In related news, CEO William Andrew Hendricks, Jr. sold 250,000 shares of the firm's stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $11.85, for a total transaction of $2,962,500.00. Following the sale, the chief executive officer owned 2,823,103 shares in the company, valued at approximately $33,453,770.55. This trade represents a 8.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Robert Wayne Drummond, Jr. sold 61,475 shares of Patterson-UTI Energy stock in a transaction that occurred 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 directly owned 1,128,773 shares of the company's stock, valued at $13,567,851.46. The trade was a 5.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 798,949 shares of company stock valued at $9,264,135. Insiders own 2.20% of the company's stock.

Institutional Investors Weigh In On Patterson-UTI Energy

Several hedge funds have recently made changes to their positions in the business. Assetmark Inc. increased its stake in Patterson-UTI Energy by 8.1% in the first quarter. Assetmark Inc. now owns 23,797 shares of the oil and gas company's stock valued at $258,000 after purchasing an additional 1,786 shares during the last quarter. Independent Financial Group LLC acquired a new stake in Patterson-UTI Energy in the 1st quarter worth about $408,000. Sanctuary Advisors LLC purchased a new stake in Patterson-UTI Energy in the 1st quarter valued at about $122,000. Bleakley Financial Group LLC purchased a new stake in Patterson-UTI Energy in the 1st quarter valued at about $219,000. Finally, Archer Investment Corp acquired a new position in shares of Patterson-UTI Energy during the 1st quarter valued at about $412,000. 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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