Patterson-UTI Energy (NASDAQ:PTEN) Upgraded to "Overweight" at Barclays

Key Points

• Barclays upgraded Patterson-UTI Energy to "Overweight" with a $15.00 target, implying roughly a 29.5% upside from the stock's current price.
• Several other brokers have raised targets and MarketBeat's consensus is a "Moderate Buy" with a $11.80 price target; PTEN opened near $11.58 after Q1 EPS of -$0.06 (beat -$0.10) and revenue of $1.12B, down 12.7% year-over-year.
• Notable insider selling occurred (director and CEO sold large blocks on May 1; ~798,949 shares worth $9.26M sold last quarter), even as hedge funds and institutions have materially increased positions—institutional ownership is ~97.9%.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) was upgraded by equities researchers at Barclays from an "equal weight" rating to an "overweight" rating in a research report issued on Thursday. The brokerage presently has a $15.00 target price on the oil and gas company's stock. Barclays's target price suggests a potential upside of 29.53% from the stock's current price.

A number of other research firms also recently issued reports on PTEN. Citigroup lifted their price objective on Patterson-UTI Energy from $9.00 to $11.00 and gave the stock a "neutral" rating in a research note on Wednesday, April 15th. The Goldman Sachs Group increased their target price on Patterson-UTI Energy from $9.00 to $11.00 and gave the company a "buy" rating in a research report on Wednesday, April 15th. Zacks Research raised shares of Patterson-UTI Energy from a "hold" rating to a "strong-buy" rating in a report on Friday, April 10th. Piper Sandler boosted their price target on shares of Patterson-UTI Energy from $10.00 to $12.00 and gave the stock a "neutral" rating in a research report on Monday, April 27th. Finally, Susquehanna upped their price target on shares of Patterson-UTI Energy from $10.00 to $13.00 and gave the company a "positive" rating in a research note on Tuesday, April 7th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Patterson-UTI Energy currently has a consensus rating of "Moderate Buy" and a consensus price target of $11.80.

Patterson-UTI Energy Stock Down 6.7%

Shares of PTEN stock opened at $11.58 on Thursday. The company's fifty day simple moving average is $10.33 and its two-hundred day simple moving average is $7.95. Patterson-UTI Energy has a 52 week low of $5.10 and a 52 week high of $12.62. The stock has a market cap of $4.40 billion, a P/E ratio of -37.35 and a beta of 0.64. The company has a quick ratio of 1.63, a current ratio of 1.84 and a debt-to-equity ratio of 0.39.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) last issued its earnings results on Wednesday, April 22nd. The oil and gas company reported ($0.06) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.10) by $0.04. The firm had revenue of $1.12 billion for the quarter, compared to analysts' expectations of $1.11 billion. Patterson-UTI Energy had a negative return on equity of 2.32% and a negative net margin of 2.56%.Patterson-UTI Energy's revenue for the quarter was down 12.7% compared to the same quarter last year. Analysts predict that Patterson-UTI Energy will post -0.22 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Robert Wayne Drummond, Jr. sold 322,699 shares of the firm's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $12.04, for a total value of $3,885,295.96. Following the completion of the sale, the director directly owned 1,190,248 shares in the company, valued at $14,330,585.92. This trade represents a 21.33% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO William Andrew Hendricks, Jr. sold 250,000 shares of Patterson-UTI Energy stock in a transaction on Friday, May 1st. The stock was sold at an average price of $11.85, for a total transaction of $2,962,500.00. Following the transaction, the chief executive officer directly owned 2,823,103 shares of the company's stock, valued at $33,453,770.55. The trade was a 8.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 798,949 shares of company stock valued at $9,264,135. Company insiders own 2.20% of the company's stock.

Hedge Funds Weigh In On Patterson-UTI Energy

A number of large investors have recently made changes to their positions in the company. Sourcerock Group LLC raised its position in Patterson-UTI Energy by 109.2% in the 2nd 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. Holocene Advisors LP grew its stake in shares of Patterson-UTI Energy by 176.6% during the third quarter. Holocene Advisors LP now owns 9,228,022 shares of the oil and gas company's stock valued at $47,801,000 after buying an additional 5,891,956 shares during the last quarter. Goldman Sachs Group Inc. grew its stake in shares of Patterson-UTI Energy by 110.8% during the fourth quarter. Goldman Sachs Group Inc. now owns 10,559,219 shares of the oil and gas company's stock valued at $64,517,000 after buying an additional 5,551,276 shares during the last quarter. UBS Group AG raised its holdings in shares of 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 buying an additional 4,558,445 shares during the period. Finally, Millennium Management LLC raised its holdings in shares of 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 buying an additional 4,442,700 shares during the period. 97.91% of the stock is owned by hedge funds and other 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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