Patterson-UTI Energy (NASDAQ:PTEN) Shares Gap Up - Here's Why

Key Points

• Patterson-UTI Energy shares opened higher, rising from a prior close of $12.43 to $12.90 before last trading near $12.65.
• Analyst sentiment remains moderately positive: nine analysts rate the stock a Buy, five a Hold and one a Sell, producing a consensus “Moderate Buy” rating and an average price target of $12.95.
• The company declared a quarterly dividend of $0.10 per share, equivalent to an annualized $0.40 payout and a 3.2% yield. Meanwhile, insiders sold 420,670 shares worth approximately $4.9 million over the past quarter.

Shares of Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report) gapped up before the market opened on Monday . The stock had previously closed at $12.43, but opened at $12.90. Patterson-UTI Energy shares last traded at $12.6450, with a volume of 575,331 shares changing hands.

Analyst Ratings Changes

A number of equities analysts have recently commented on PTEN shares. Weiss Ratings reissued a "sell (d+)" rating on shares of Patterson-UTI Energy in a research note on Friday, August 21st. JPMorgan Chase & Co. raised shares of Patterson-UTI Energy from an "underweight" rating to a "neutral" rating and set a $12.00 price target for the company in a research report on Friday, July 31st. Susquehanna increased their price target on Patterson-UTI Energy from $12.00 to $13.00 and gave the company a "positive" rating in a report on Monday, August 3rd. Zacks Research lowered Patterson-UTI Energy from a "strong-buy" rating to a "hold" rating in a research report on Thursday. Finally, Royal Bank Of Canada upped their target price on Patterson-UTI Energy from $14.00 to $15.00 and gave the stock an "outperform" rating in a research report on Friday, May 29th. Nine investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Patterson-UTI Energy currently has a consensus rating of "Moderate Buy" and an average target price of $12.95.

Patterson-UTI Energy Stock Performance

The company has a quick ratio of 1.57, a current ratio of 1.75 and a debt-to-equity ratio of 0.40. The company has a 50 day moving average of $10.30 and a 200 day moving average of $10.47. The firm has a market cap of $4.74 billion, a price-to-earnings ratio of -54.00 and a beta of 0.63.

Patterson-UTI Energy Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a dividend of $0.10 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $0.40 dividend on an annualized basis and a dividend yield of 3.2%. Patterson-UTI Energy's dividend payout ratio (DPR) is presently -173.91%.

Insider Buying and Selling

In other Patterson-UTI Energy news, CEO William Andrew Hendricks, Jr. sold 200,000 shares of the firm's stock in a transaction 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 transaction, the chief executive officer directly owned 2,542,474 shares of the company's stock, valued at $29,594,397.36. This trade represents a 7.29% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Forrest C. Robinson sold 13,670 shares of the business's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $12.01, for a total transaction of $164,176.70. Following the completion of the sale, the chief accounting officer directly owned 56,842 shares of the company's stock, valued at $682,672.42. The trade was a 19.39% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 420,670 shares of company stock worth $4,880,957. Insiders own 2.20% of the company's stock.

Institutional Trading of Patterson-UTI Energy

Several institutional investors and hedge funds have recently bought and sold shares of the company. Convergence Investment Partners LLC acquired a new stake in shares of Patterson-UTI Energy during the 1st quarter valued at approximately $1,325,000. Principal Financial Group Inc. boosted its holdings in Patterson-UTI Energy by 92.6% in the fourth quarter. Principal Financial Group Inc. now owns 8,515,581 shares of the oil and gas company's stock worth $52,030,000 after purchasing an additional 4,093,636 shares during the period. Prescott Group Capital Management L.L.C. bought a new stake in Patterson-UTI Energy during the fourth quarter valued at $1,161,000. Gagnon Securities LLC increased its stake in Patterson-UTI Energy by 69.0% during the fourth quarter. Gagnon Securities LLC now owns 352,777 shares of the oil and gas company's stock valued at $2,155,000 after purchasing an additional 144,080 shares during the last quarter. Finally, Quantinno Capital Management LP raised its holdings in shares of Patterson-UTI Energy by 163.5% during the first quarter. Quantinno Capital Management LP now owns 503,916 shares of the oil and gas company's stock worth $5,457,000 after purchasing an additional 312,680 shares during the period. Institutional investors and hedge funds own 97.91% of the company's stock.

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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