Patterson-UTI Energy (NASDAQ:PTEN) Shares Up 7.5% - What's Next?

Key Points

• Patterson-UTI Energy shares rose 7.5% in Tuesday trading, reaching an intraday high of $9.18 and closing near $9.20 on volume below average.
• Analyst sentiment is mixed: several firms recently adjusted price targets, and the stock currently carries an average Hold rating with a consensus target price of $12.35.
• The company most recently beat earnings expectations, posting -$0.06 EPS versus the expected -$0.10, while revenue of $1.12 billion slightly topped forecasts; it also pays a quarterly dividend of $0.10 per share, yielding about 4.3%.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report) shares shot up 7.5% during trading on Tuesday . The stock traded as high as $9.18 and last traded at $9.1990. 5,629,676 shares traded hands during mid-day trading, a decline of 46% from the average daily volume of 10,382,104 shares. The stock had previously closed at $8.56.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on PTEN shares. Royal Bank Of Canada lifted their target price on shares of Patterson-UTI Energy from $14.00 to $15.00 and gave the stock an "outperform" rating in a research report 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. Piper Sandler lifted their price objective on shares of Patterson-UTI Energy from $12.00 to $13.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 27th. The Goldman Sachs Group increased their target price on Patterson-UTI Energy from $11.00 to $13.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Finally, Citigroup lowered their price target on Patterson-UTI Energy from $11.00 to $10.50 and set a "neutral" rating on the stock in a report on Monday, June 29th. Eight equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $12.35.

Patterson-UTI Energy Stock Performance

The firm's fifty day moving average is $11.17 and its 200 day moving average is $9.46. The firm has a market capitalization of $3.49 billion, a price-to-earnings ratio of -29.72 and a beta of 0.62. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.84 and a quick ratio of 1.63.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last released its earnings results on Wednesday, April 22nd. The oil and gas company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.10) by $0.04. The company had revenue of $1.12 billion during the quarter, compared to the consensus estimate of $1.11 billion. Patterson-UTI Energy had a negative net margin of 2.56% and a negative return on equity of 2.32%. The company's revenue was down 12.7% on a year-over-year basis. On average, analysts predict that Patterson-UTI Energy, Inc. will post -0.14 EPS for the current fiscal year.

Patterson-UTI Energy Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were given a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 4.3%. The ex-dividend date of this dividend was Monday, June 1st. Patterson-UTI Energy's dividend payout ratio is presently -129.03%.

Insider Activity at Patterson-UTI Energy

In related news, Director Robert Wayne Drummond, Jr. sold 61,475 shares of the stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $12.02, for a total value of $738,929.50. Following the transaction, the director owned 1,128,773 shares in the company, valued at approximately $13,567,851.46. This represents a 5.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Cesar Jaime sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $12.29, for a total transaction of $122,900.00. Following the transaction, the director directly owned 77,462 shares in the company, valued at approximately $952,007.98. The trade was a 11.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 1,007,844 shares of company stock worth $11,922,302. 2.20% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of PTEN. Quarry LP increased its position in Patterson-UTI Energy by 360.3% during the third quarter. Quarry LP now owns 4,934 shares of the oil and gas company's stock worth $26,000 after buying an additional 3,862 shares during the last quarter. First Horizon Corp boosted its stake in shares of Patterson-UTI Energy by 58.5% during the 4th quarter. First Horizon Corp now owns 5,554 shares of the oil and gas company's stock worth $34,000 after acquiring an additional 2,049 shares in the last quarter. Rockefeller Capital Management L.P. boosted its stake 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 in the last quarter. Torren Management LLC acquired a new position in shares of Patterson-UTI Energy during the 4th quarter valued at about $44,000. Finally, EverSource Wealth Advisors LLC raised its stake in shares of Patterson-UTI Energy by 494.6% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 8,621 shares of the oil and gas company's stock valued at $51,000 after acquiring an additional 7,171 shares in the last quarter. 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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