The Goldman Sachs Group Issues Positive Forecast for Patterson-UTI Energy (NASDAQ:PTEN) Stock Price

Key Points

• Goldman Sachs raised its price target on Patterson-UTI Energy from $11 to $13 and kept a Buy rating, implying modest upside from the prior close.
• Other analysts have also turned more positive on PTEN, with several recent upgrades and a consensus rating of Moderate Buy and an average target price of $12.30.
• The company’s latest earnings beat expectations on both EPS and revenue, but results were still weak overall with year-over-year revenue down 12.7% and insider selling adding a cautious note.

Patterson-UTI Energy (NASDAQ:PTEN - Get Free Report) had its price objective upped by research analysts at The Goldman Sachs Group from $11.00 to $13.00 in a research note issued to investors on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the oil and gas company's stock. The Goldman Sachs Group's target price would suggest a potential upside of 5.57% from the company's previous close.

PTEN has been the topic of a number of other reports. Zacks Research upgraded shares of Patterson-UTI Energy from a "hold" rating to a "strong-buy" rating in a research report on Friday, April 10th. Morgan Stanley boosted their price objective on Patterson-UTI Energy from $7.00 to $10.00 and gave the stock an "equal weight" rating in a research note on Wednesday, April 15th. Citigroup boosted 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. Barclays raised Patterson-UTI Energy from an "equal weight" rating to an "overweight" rating and boosted their price objective for the stock from $10.00 to $15.00 in a research note on Thursday, May 7th. Finally, KeyCorp upgraded shares of Patterson-UTI Energy to an "overweight" rating in a research report on Wednesday, May 27th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $12.30.

Patterson-UTI Energy Price Performance

Shares of Patterson-UTI Energy stock traded up $0.30 during trading on Thursday, hitting $12.31. 4,515,603 shares of the company's stock traded hands, compared to its average volume of 10,351,543. The company has a debt-to-equity ratio of 0.39, a current ratio of 1.84 and a quick ratio of 1.63. The firm's fifty day moving average price is $11.30 and its 200 day moving average price is $8.77. Patterson-UTI Energy has a twelve month low of $5.10 and a twelve month high of $13.08. The company has a market cap of $4.67 billion, a PE ratio of -39.69 and a beta of 0.61.

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 for the quarter, beating the consensus estimate of ($0.10) by $0.04. Patterson-UTI Energy had a negative net margin of 2.56% and a negative return on equity of 2.32%. The business had revenue of $1.12 billion for the quarter, compared to analyst estimates of $1.11 billion. Patterson-UTI Energy's revenue for the quarter was down 12.7% on a year-over-year basis. Analysts forecast that Patterson-UTI Energy will post -0.16 earnings per share for the current year.

Insider Activity at Patterson-UTI Energy

In other news, Director Robert Wayne Drummond, Jr. sold 61,475 shares of the stock in a transaction on Monday, May 4th. The shares were sold at an average price of $12.02, for a total transaction of $738,929.50. Following the completion of the sale, the director owned 1,128,773 shares of the company's stock, valued at $13,567,851.46. This represents a 5.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Cesar Jaime sold 10,000 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $12.29, for a total transaction of $122,900.00. Following the sale, the director directly owned 77,462 shares of the company's stock, valued at $952,007.98. This represents a 11.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 958,949 shares of company stock worth $11,107,535 over the last three months. 2.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Quarry LP grew its position in Patterson-UTI Energy by 360.3% in the third quarter. Quarry LP now owns 4,934 shares of the oil and gas company's stock valued at $26,000 after purchasing an additional 3,862 shares in the last quarter. First Horizon Corp grew its position in Patterson-UTI Energy by 58.5% in the fourth quarter. First Horizon Corp now owns 5,554 shares of the oil and gas company's stock valued at $34,000 after purchasing an additional 2,049 shares in the last quarter. Rockefeller Capital Management L.P. grew its position in Patterson-UTI Energy by 187.6% in the fourth quarter. Rockefeller Capital Management L.P. now owns 6,591 shares of the oil and gas company's stock valued at $40,000 after purchasing an additional 4,299 shares in the last quarter. Aster Capital Management DIFC Ltd bought a new position in Patterson-UTI Energy in the third quarter valued at $37,000. Finally, Torren Management LLC bought a new position in Patterson-UTI Energy in the fourth quarter valued at $44,000. 97.91% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Patterson-UTI Energy

Here are the key news stories impacting Patterson-UTI Energy this week:

• Positive Sentiment: Zacks Research lifted its near-term and longer-term EPS estimates for Patterson-UTI Energy, including higher forecasts for FY2026, FY2027, FY2028, and several 2026-2027 quarters, suggesting analysts see improving profitability ahead.
• Positive Sentiment: The firm maintained a Strong-Buy rating, reinforcing a constructive view on PTEN despite the company still expected to post losses in the near term.
• Neutral Sentiment: Recent earnings data showed Patterson-UTI beat expectations on both EPS and revenue, which continues to support investor confidence, although revenue was still down year over year.
• Negative Sentiment: Even with the improved estimates, Zacks still projects negative EPS for most of the next several quarters and for FY2026/FY2027, so the turnaround remains incomplete.
• Negative Sentiment: An insider sale by COO James Michael Holcomb may be a mild headwind for sentiment, as investors often view large insider selling cautiously.

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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