Patterson-UTI Energy (NASDAQ:PTEN) Shares Up 6.2% - Should You Buy?

Key Points

• Patterson-UTI Energy's shares rose 6.2% recently, reaching a trading price of $6.13, although trading volume was down 47% from the average.
• Analysts have set mixed ratings on the stock, with three ratings at Buy, nine at Hold, and one at Sell, and the average price target sits at $7.80.
• The company announced a quarterly dividend of $0.08 per share, representing an annual yield of 5.2%, despite a negative net margin of 21.49%.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report) was up 6.2% on Tuesday . The stock traded as high as $6.12 and last traded at $6.13. Approximately 5,661,751 shares were traded during mid-day trading, a decline of 47% from the average daily volume of 10,722,679 shares. The stock had previously closed at $5.77.

Analysts Set New Price Targets

A number of analysts have recently commented on PTEN shares. Susquehanna cut their price objective on Patterson-UTI Energy from $8.00 to $7.00 and set a "positive" rating for the company in a research report on Wednesday, September 3rd. Stifel Nicolaus decreased their target price on Patterson-UTI Energy from $12.00 to $10.00 and set a "buy" rating on the stock in a research note on Friday, July 25th. Weiss Ratings restated a "sell (d)" rating on shares of Patterson-UTI Energy in a report on Wednesday, October 8th. Piper Sandler began coverage on Patterson-UTI Energy in a report on Tuesday, July 15th. They issued a "neutral" rating and a $7.00 price target for the company. Finally, Zacks Research upgraded Patterson-UTI Energy from a "strong sell" rating to a "hold" rating in a research note on Thursday, September 25th. Three equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $7.80.

Patterson-UTI Energy Price Performance

The business has a 50-day moving average price of $5.57 and a 200 day moving average price of $5.83. The company has a market cap of $2.37 billion, a price-to-earnings ratio of -2.23 and a beta of 1.23. The company has a current ratio of 1.73, a quick ratio of 1.50 and a debt-to-equity ratio of 0.37.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last announced its quarterly earnings results on Tuesday, March 21st. The oil and gas company reported ($0.38) EPS for the quarter. Patterson-UTI Energy had a negative return on equity of 1.94% and a negative net margin of 21.49%.The business had revenue of $191.70 million for the quarter. As a group, research analysts expect that Patterson-UTI Energy, Inc. will post -0.1 earnings per share for the current fiscal year.

Patterson-UTI Energy Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were paid a $0.08 dividend. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $0.32 annualized dividend and a yield of 5.2%. Patterson-UTI Energy's dividend payout ratio is presently -11.59%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sourcerock Group LLC boosted its position in shares of Patterson-UTI Energy by 109.2% in the second quarter. Sourcerock Group LLC now owns 13,803,775 shares of the oil and gas company's stock worth $81,856,000 after purchasing an additional 7,205,652 shares during the period. Norges Bank bought a new position in Patterson-UTI Energy during the 2nd quarter worth about $25,987,000. Holocene Advisors LP increased its position in shares of Patterson-UTI Energy by 7,113.3% during the second quarter. Holocene Advisors LP now owns 3,336,066 shares of the oil and gas company's stock worth $19,783,000 after purchasing an additional 3,289,817 shares in the last quarter. American Century Companies Inc. raised its position in shares of Patterson-UTI Energy by 23.4% in the 2nd quarter. American Century Companies Inc. now owns 14,463,590 shares of the oil and gas company's stock valued at $85,769,000 after purchasing an additional 2,746,159 shares during the last quarter. Finally, Nuveen LLC acquired a new stake in Patterson-UTI Energy during the 1st quarter valued at approximately $22,563,000. 97.91% of the stock is currently owned by hedge funds and other institutional investors.

Patterson-UTI Energy Company Profile

Patterson-UTI Energy, Inc, through its subsidiaries, engages in the provision of contract drilling services to oil and natural gas operators in the United States and internationally. It operates through three segments: Drilling Services, Completion Services, and Drilling Products. The Contract Drilling Services segment provides contract and directional drilling services in onshore oil and natural gas basins, as well as engages in the service and re-certification of equipment for drilling contractors, and provision of electrical controls and automation to the energy, marine and mining industries.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.