Patterson-UTI Energy (NASDAQ:PTEN) Stock Price Down 4.1% - Here's What Happened

Key Points

• Patterson-UTI Energy shares fell 4.1% to approximately $11.55 in midday trading, with volume down 88% from the average daily level.
• Analyst sentiment remains generally positive: nine analysts rate the stock a Buy and six rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $13.14.
• Company insiders sold more than 1 million shares worth approximately $12.7 million over the past 90 days, while institutional investors own 97.91% of the stock; the company also maintains a quarterly dividend of $0.10 per share.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report) was down 4.1% during mid-day trading on Tuesday. The stock traded as low as $11.58 and last traded at $11.5530. Approximately 1,151,067 shares changed hands during trading, a decline of 88% from the average daily volume of 9,520,760 shares. The stock had previously closed at $12.05.

Analyst Ratings Changes

A number of research analysts recently commented on PTEN shares. Piper Sandler reaffirmed an "overweight" rating on shares of Patterson-UTI Energy in a report on Friday, August 21st. Susquehanna upped their price objective on Patterson-UTI Energy from $12.00 to $13.00 and gave the company a "positive" rating in a research report on Monday, August 3rd. UBS Group assumed coverage on Patterson-UTI Energy in a research note on Friday, October 2nd. They issued a "neutral" rating and a $13.00 price objective for the company. Barclays lifted their target price on Patterson-UTI Energy from $15.00 to $16.00 and gave the stock an "overweight" rating in a report on Wednesday, August 5th. Finally, Zacks Research lowered Patterson-UTI Energy from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 27th. Nine analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $13.14.

Patterson-UTI Energy Trading Down 3.8%

The company's 50 day simple moving average is $11.80 and its 200-day simple moving average is $11.08. The firm has a market cap of $4.42 billion, a P/E ratio of -50.43 and a beta of 0.77. 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 was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were given a $0.10 dividend. This represents a $0.40 annualized dividend and a yield of 3.4%. The ex-dividend date of this dividend was Tuesday, September 1st. Patterson-UTI Energy's dividend payout ratio is -173.91%.

Insiders Place Their Bets

In related news, EVP Seth Wexler sold 120,000 shares of Patterson-UTI Energy stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $12.75, for a total transaction of $1,530,000.00. Following the completion of the sale, the executive vice president owned 404,582 shares in the company, valued at $5,158,420.50. This trade represents a 22.88% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Robert Wayne Drummond, Jr. sold 198,395 shares of the business's stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $12.85, for a total transaction of $2,549,375.75. Following the completion of the sale, the director directly owned 928,773 shares of the company's stock, valued at approximately $11,934,733.05. This trade represents a 17.60% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 1,027,000 shares of company stock worth $12,698,780. 2.20% of the stock is currently owned by company insiders.

Institutional Trading of Patterson-UTI Energy

Several institutional investors and hedge funds have recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in shares of Patterson-UTI Energy in the 2nd quarter worth $577,234,000. Dimensional Fund Advisors LP raised its stake in Patterson-UTI Energy by 14.9% in the first quarter. Dimensional Fund Advisors LP now owns 21,211,576 shares of the oil and gas company's stock valued at $229,732,000 after buying an additional 2,745,872 shares during the last quarter. Principal Financial Group Inc. raised its stake in Patterson-UTI Energy by 11.0% in the first quarter. Principal Financial Group Inc. now owns 9,450,347 shares of the oil and gas company's stock valued at $102,347,000 after buying an additional 934,766 shares during the last quarter. Webs Creek Capital Management LP purchased a new stake in Patterson-UTI Energy in the second quarter valued at about $53,729,934. Finally, Bank of America Corp DE acquired a new stake in Patterson-UTI Energy in the second quarter worth about $52,132,000. Institutional investors own 97.91% of the company's stock.

Patterson-UTI Energy Company Profile

Patterson-UTI Energy, Inc is an oilfield services company that provides drilling, completion and production-related services to oil and natural gas exploration and production companies. Its operations are primarily focused on onshore oil and gas development in the United States.

The company provides contract land drilling services through a fleet of rigs, as well as directional drilling and related technologies used to guide wellbores. Patterson-UTI also offers pressure pumping and hydraulic fracturing, wireline, well-completion, equipment rental and other services that support the development and maintenance of unconventional wells.

Patterson-UTI expanded its completion-services business through its 2023 merger with NexTier Oilfield Solutions.

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