Patterson-UTI Energy (NASDAQ:PTEN) Stock Price Down 4.4% - Should You Sell?

Key Points

• Patterson-UTI Energy shares fell 4.4% to about $12.15, with trading volume well below its average; the stock remains above its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $13.25 price target. Nine analysts rate the stock a Buy, five a Hold, and one a Sell.
• The company pays a quarterly dividend of $0.10 per share, or $0.40 annually, representing a 3.2% yield. However, insiders sold 777,000 shares worth approximately $9.7 million over the past 90 days.

Patterson-UTI Energy, Inc. (NASDAQ:PTEN - Get Free Report)'s share price dropped 4.4% on Wednesday . The stock traded as low as $12.22 and last traded at $12.1450. 743,730 shares were traded during trading, a decline of 92% from the average daily volume of 9,801,393 shares. The stock had previously closed at $12.71.

Wall Street Analyst Weigh In

A number of research firms recently commented on PTEN. Stifel Nicolaus lifted their target price on Patterson-UTI Energy from $14.00 to $15.00 and gave the stock a "buy" rating in a report on Tuesday, June 16th. Piper Sandler restated an "overweight" rating on shares of Patterson-UTI Energy in a research note on Friday, August 21st. 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 report on Friday, May 29th. JPMorgan Chase & Co. upgraded shares of Patterson-UTI Energy from an "underweight" rating to a "neutral" rating and set a $12.00 price objective on the stock in a research note on Friday, July 31st. Finally, The Goldman Sachs Group boosted their target price on shares of Patterson-UTI Energy from $11.00 to $13.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. Nine equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $13.25.

Patterson-UTI Energy Stock Down 3.0%

The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.57 and a current ratio of 1.75. The firm has a market cap of $4.70 billion, a price-to-earnings ratio of -53.54 and a beta of 0.66. The business's 50 day moving average price is $11.12 and its 200 day moving average price is $10.85.

Patterson-UTI Energy Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a dividend of $0.10 per share. The ex-dividend date was 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 -173.91%.

Insiders Place Their Bets

In other news, Director Robert Wayne Drummond, Jr. sold 198,395 shares of Patterson-UTI Energy stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $12.85, for a total value of $2,549,375.75. Following the sale, the director directly owned 928,773 shares of the company's stock, valued at $11,934,733.05. The trade was a 17.60% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director James Stewart sold 207,000 shares of Patterson-UTI Energy stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $11.54, for a total transaction of $2,388,780.00. The SEC filing for this sale provides additional information. Insiders have sold 777,000 shares of company stock valued at $9,721,280 over the last ninety days. 2.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Convergence Investment Partners LLC acquired a new position in shares of Patterson-UTI Energy in the 1st quarter worth approximately $1,325,000. Prescott Group Capital Management L.L.C. acquired a new stake in Patterson-UTI Energy in the 4th quarter valued at approximately $1,161,000. Gagnon Securities LLC raised its position in Patterson-UTI Energy by 69.0% in 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 period. Quantinno Capital Management LP raised its position in Patterson-UTI Energy by 163.5% in the first quarter. Quantinno Capital Management LP now owns 503,916 shares of the oil and gas company's stock valued at $5,457,000 after purchasing an additional 312,680 shares during the period. Finally, Pictet Asset Management Holding SA lifted its stake in Patterson-UTI Energy by 686.1% during the first quarter. Pictet Asset Management Holding SA now owns 475,726 shares of the oil and gas company's stock worth $5,152,000 after purchasing an additional 415,209 shares in the last quarter. 97.91% of the stock is owned by hedge funds and other institutional investors.

Patterson-UTI Energy Company Profile

Patterson-UTI Energy, Inc NASDAQ: PTEN is an energy-services company that provides drilling, completion, and production-related services to oil and natural gas operators. Its operations support the development of unconventional and other onshore energy resources, primarily in North America.

The company's offerings include contract land drilling, pressure pumping, well completion services, directional drilling, downhole tools, and related drilling technologies. Patterson-UTI also provides equipment, technical services, and other solutions used throughout the well-construction and completion process.

Patterson-UTI traces its history to the late 1970s and expanded its service platform through acquisitions and strategic combinations.

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