Patterson-UTI Energy (NASDAQ:PTEN) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Patterson-UTI Energy (NASDAQ:PTEN) from a “strong-buy” to a “hold,” even as other analysts remain mixed on the stock. The consensus rating from MarketBeat data is also “Hold,” with an average price target of $12.40.
• The stock was down 2.9% and opened at $10.35, below its recent 50-day average of $11.41 but above its 200-day average of $9.13. PTEN has traded between $5.10 and $13.08 over the past year.
• Recent earnings beat expectations, but results were weak year over year: the company reported a loss of $0.06 per share versus estimates for a loss of $0.10, while revenue of $1.12 billion slightly topped forecasts. However, revenue fell 12.7% from a year earlier and analysts expect a loss of $0.15 per share for the full year.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

Several other equities research analysts have also recently weighed in on the stock. Barclays upgraded shares of Patterson-UTI Energy from an "equal weight" rating to an "overweight" rating and increased their price objective for the stock from $10.00 to $15.00 in a research report on Thursday, May 7th. Morgan Stanley raised their price target on shares of Patterson-UTI Energy from $7.00 to $10.00 and gave the stock an "equal weight" rating in a report on Wednesday, April 15th. Piper Sandler raised their price target on shares of Patterson-UTI Energy from $12.00 to $13.00 and gave the stock a "neutral" rating in a report on Wednesday, May 27th. Bank of America restated a "buy" rating on shares of Patterson-UTI Energy in a report on Monday, March 2nd. Finally, Susquehanna raised their price target on shares of Patterson-UTI Energy from $13.00 to $14.00 and gave the stock a "positive" rating in a report on Wednesday, May 27th. Eight equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $12.40.

Patterson-UTI Energy Trading Down 2.9%

PTEN opened at $10.35 on Monday. Patterson-UTI Energy has a twelve month low of $5.10 and a twelve month high of $13.08. The company has a quick ratio of 1.63, a current ratio of 1.84 and a debt-to-equity ratio of 0.39. The company has a fifty day moving average of $11.41 and a 200-day moving average of $9.13. The stock has a market cap of $3.93 billion, a PE ratio of -33.39 and a beta of 0.61.

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) earnings per share for the quarter, topping the consensus estimate of ($0.10) by $0.04. Patterson-UTI Energy had a negative net margin of 2.56% and a negative return on equity of 2.32%. The company had revenue of $1.12 billion during the quarter, compared to analysts' expectations of $1.11 billion. Patterson-UTI Energy's revenue for the quarter was down 12.7% on a year-over-year basis. On average, sell-side analysts predict that Patterson-UTI Energy will post -0.15 EPS for the current year.

Insider Transactions at Patterson-UTI Energy

In other Patterson-UTI Energy news, Director Robert Wayne Drummond, Jr. sold 322,699 shares of the firm's stock in a transaction on Friday, May 1st. The shares were sold at an average price of $12.04, for a total value of $3,885,295.96. Following the transaction, the director directly owned 1,190,248 shares of the company's stock, valued at approximately $14,330,585.92. This trade represents a 21.33% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Cesar Jaime sold 10,000 shares of the firm's stock in a transaction 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 completion of the transaction, the director directly owned 77,462 shares in the company, valued at $952,007.98. This trade represents a 11.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 1,007,844 shares of company stock valued at $11,922,302. Corporate insiders own 2.20% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in PTEN. Sourcerock Group LLC raised its position in 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 acquiring an additional 7,205,652 shares during the period. Holocene Advisors LP raised its position in Patterson-UTI Energy by 176.6% in the third quarter. Holocene Advisors LP now owns 9,228,022 shares of the oil and gas company's stock worth $47,801,000 after acquiring an additional 5,891,956 shares during the period. Goldman Sachs Group Inc. raised its position in Patterson-UTI Energy by 110.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 10,559,219 shares of the oil and gas company's stock worth $64,517,000 after acquiring an additional 5,551,276 shares during the period. UBS Group AG raised its position in Patterson-UTI Energy by 121.2% in the fourth quarter. UBS Group AG now owns 8,320,544 shares of the oil and gas company's stock worth $50,839,000 after acquiring an additional 4,558,445 shares during the period. Finally, Millennium Management LLC raised its position in Patterson-UTI Energy by 97.7% in the third quarter. Millennium Management LLC now owns 8,989,351 shares of the oil and gas company's stock worth $46,565,000 after acquiring an additional 4,442,700 shares during the period. 97.91% of the stock is owned by institutional investors.

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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