Patterson-UTI Energy (NASDAQ:PTEN) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley raised its price target on Patterson-UTI to $10 (from $7) but kept an "equal weight" rating, while the analyst consensus remains a Hold with an average target of $9.44, reflecting mixed sentiment despite several recent target upgrades.
• PTEN traded at about $10.04 (+1.6%) after reporting quarterly results that beat estimates—EPS of ($0.02) vs. ($0.11) expected and revenue of $1.15B vs. $1.10B—but the company still shows a negative net margin and ROE and is expected to post roughly -0.1 EPS for the fiscal year.
• A director sold 164,775 shares for about $1.68M, insiders own 2.3% of the stock, and institutional investors hold roughly 97.9%, indicating heavy institutional ownership despite insider selling.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) had its target price upped by equities researchers at Morgan Stanley from $7.00 to $10.00 in a report issued on Wednesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the oil and gas company's stock. Morgan Stanley's price target indicates a potential downside of 0.35% from the stock's current price.

Several other equities research analysts also recently issued reports on PTEN. Citigroup boosted their price objective on shares of Patterson-UTI Energy from $7.00 to $9.00 and gave the stock a "neutral" rating in a research note on Monday, February 9th. The Goldman Sachs Group boosted their price objective on shares of Patterson-UTI Energy from $7.00 to $9.00 and gave the stock a "buy" rating in a research note on Wednesday, March 4th. Bank of America reiterated a "buy" rating on shares of Patterson-UTI Energy in a research note on Monday, March 2nd. Susquehanna boosted their price objective on shares of Patterson-UTI Energy from $10.00 to $13.00 and gave the stock a "positive" rating in a research note on Tuesday, April 7th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Patterson-UTI Energy in a research note on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, five have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Patterson-UTI Energy presently has a consensus rating of "Hold" and an average target price of $9.44.

Patterson-UTI Energy Trading Up 1.6%

PTEN traded up $0.16 during trading on Wednesday, hitting $10.04. 4,167,496 shares of the company's stock were exchanged, compared to its average volume of 11,223,053. The company has a current ratio of 1.64, a quick ratio of 1.46 and a debt-to-equity ratio of 0.38. Patterson-UTI Energy has a 1 year low of $5.10 and a 1 year high of $11.75. The stock has a 50 day moving average price of $9.55 and a 200 day moving average price of $7.41. The firm has a market cap of $3.81 billion, a P/E ratio of -40.10 and a beta of 0.57.

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

Insider Buying and Selling

In other Patterson-UTI Energy news, Director Robert Wayne Drummond, Jr. sold 164,775 shares of the stock in a transaction on Monday, March 16th. The shares were sold at an average price of $10.18, for a total transaction of $1,677,409.50. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 2.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Quarry LP boosted its stake in Patterson-UTI Energy by 360.3% during the 3rd quarter. Quarry LP now owns 4,934 shares of the oil and gas company's stock valued at $26,000 after acquiring an additional 3,862 shares during the last quarter. First Horizon Corp boosted its stake in 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 valued at $34,000 after acquiring an additional 2,049 shares during the last quarter. Versant Capital Management Inc boosted its stake in Patterson-UTI Energy by 127.3% during the 3rd quarter. Versant Capital Management Inc now owns 5,970 shares of the oil and gas company's stock valued at $31,000 after acquiring an additional 3,343 shares during the last quarter. Rockefeller Capital Management L.P. boosted its stake in 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 valued at $40,000 after acquiring an additional 4,299 shares during the last quarter. Finally, Aster Capital Management DIFC Ltd bought a new position in Patterson-UTI Energy during the 3rd quarter valued at $37,000. 97.91% of the stock is currently owned by institutional investors.

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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