Patterson-UTI Energy (NASDAQ:PTEN) Trading Up 9.3% - Time to Buy?

Key Points

• Patterson-UTI Energy shares jumped about 9.3% to roughly $10.78, although trading volume was 91% below the stock’s average daily volume.
• Analyst sentiment is broadly positive: the stock carries a “Moderate Buy” consensus rating, with an average price target of $12.95 versus its recent trading price.
• The company declared a quarterly dividend of $0.10 per share, equivalent to a 3.7% annualized yield; however, insiders sold more than 363,000 shares in the past 90 days, while institutional investors own 97.91% of the stock.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report)'s stock price traded up 9.3% during trading on Monday . The company traded as high as $10.70 and last traded at $10.7840. 885,078 shares were traded during trading, a decline of 91% from the average daily volume of 10,176,545 shares. The stock had previously closed at $9.87.

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on the company. Zacks Research upgraded Patterson-UTI Energy from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 29th. Capital One Financial raised Patterson-UTI Energy from an "equal weight" rating to an "overweight" rating and set a $12.00 price target on the stock in a research note on Monday, April 20th. Piper Sandler upgraded Patterson-UTI Energy from a "neutral" rating to an "overweight" rating and set a $13.00 price objective on the stock in a report on Tuesday, July 14th. Royal Bank Of Canada upped their price objective on shares of Patterson-UTI Energy from $14.00 to $15.00 and gave the company an "outperform" rating in a research note on Friday, May 29th. Finally, Stifel Nicolaus raised their target price on shares of Patterson-UTI Energy from $14.00 to $15.00 and gave the stock a "buy" rating in a report on Tuesday, June 16th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Patterson-UTI Energy presently has an average rating of "Moderate Buy" and an average target price of $12.95.

Patterson-UTI Energy Trading Up 9.6%

The firm has a market cap of $4.12 billion, a price-to-earnings ratio of -47.02 and a beta of 0.63. The company has a 50-day moving average price of $10.16 and a 200 day moving average price of $10.04. The company has a quick ratio of 1.57, a current ratio of 1.75 and a debt-to-equity ratio of 0.40.

Patterson-UTI Energy Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be given a dividend of $0.10 per share. The ex-dividend date is Tuesday, September 1st. This represents a $0.40 dividend on an annualized basis and a yield of 3.7%. Patterson-UTI Energy's dividend payout ratio (DPR) is presently -173.91%.

Insider Buying and Selling at Patterson-UTI Energy

In related news, CEO William Andrew Hendricks, Jr. sold 200,000 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $11.64, for a total transaction of $2,328,000.00. Following the completion of the sale, the chief executive officer directly owned 2,542,474 shares in the company, valued at approximately $29,594,397.36. This trade represents a 7.29% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, COO James Michael Holcomb sold 150,000 shares of the company's stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $11.47, for a total transaction of $1,720,500.00. Following the completion of the transaction, the chief operating officer owned 421,523 shares in the company, valued at approximately $4,834,868.81. This represents a 26.25% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 363,670 shares of company stock valued at $4,212,677 in the last 90 days. 2.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Patterson-UTI Energy

A number of institutional investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in shares of Patterson-UTI Energy during the 2nd quarter valued at $577,234,000. Deutsche Bank AG purchased a new stake in shares of Patterson-UTI Energy during the second quarter worth $3,455,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in Patterson-UTI Energy during the second quarter valued at $32,000. Monaco Asset Management SAM acquired a new stake in Patterson-UTI Energy during the second quarter valued at $918,000. Finally, Global Retirement Partners LLC purchased a new position in Patterson-UTI Energy in the second quarter valued at about $100,000. 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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