Patterson-UTI Energy (NASDAQ:PTEN) Shares Gap Down After Analyst Downgrade

Patterson-UTI Energy, Inc. (NASDAQ:PTEN)’s share price gapped down before the market opened on Monday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock had previously closed at $11.49, but opened at $10.70. Patterson-UTI Energy shares last traded at $10.8350, with a volume of 923,526 shares trading hands.

A number of other equities analysts have also weighed in on PTEN. Piper Sandler upped their price target on shares of Patterson-UTI Energy from $12.00 to $13.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 27th. Bank of America restated a “buy” rating on shares of Patterson-UTI Energy in a research note on Monday, March 2nd. Susquehanna increased their price target on Patterson-UTI Energy from $13.00 to $14.00 and gave the stock a “positive” rating in a research note on Wednesday, May 27th. KeyCorp upgraded Patterson-UTI Energy to an “overweight” rating in a research report on Wednesday, May 27th. Finally, Morgan Stanley upped 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. Eight research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $12.40.

Insiders Place Their Bets

In other news, CEO William Andrew Hendricks, Jr. sold 200,000 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was 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 in the company, valued at approximately $29,594,397.36. This represents a 7.29% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Forrest C. Robinson sold 13,670 shares of the firm’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $12.01, for a total transaction of $164,176.70. Following the completion of the transaction, the chief accounting officer directly owned 56,842 shares of the company’s stock, valued at approximately $682,672.42. This trade represents a 19.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 1,007,844 shares of company stock worth $11,922,302. Insiders own 2.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Lazard Asset Management LLC raised its position in Patterson-UTI Energy by 6.2% during the first quarter. Lazard Asset Management LLC now owns 21,339 shares of the oil and gas company’s stock valued at $231,000 after purchasing an additional 1,255 shares during the period. O Shaughnessy Asset Management LLC raised its holdings in Patterson-UTI Energy by 11.4% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 13,901 shares of the oil and gas company’s stock valued at $85,000 after buying an additional 1,420 shares during the period. Aster Capital Management DIFC Ltd raised its holdings in Patterson-UTI Energy by 21.6% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 8,717 shares of the oil and gas company’s stock valued at $53,000 after buying an additional 1,547 shares during the period. Sage Rhino Capital LLC lifted its position in Patterson-UTI Energy by 6.6% in the fourth quarter. Sage Rhino Capital LLC now owns 25,371 shares of the oil and gas company’s stock worth $155,000 after buying an additional 1,575 shares during the last quarter. Finally, Assetmark Inc. lifted its position in Patterson-UTI Energy by 8.1% in the first quarter. Assetmark Inc. now owns 23,797 shares of the oil and gas company’s stock worth $258,000 after buying an additional 1,786 shares during the last quarter. Hedge funds and other institutional investors own 97.91% of the company’s stock.

Patterson-UTI Energy Price Performance

The company has a quick ratio of 1.63, a current ratio of 1.84 and a debt-to-equity ratio of 0.39. The firm’s 50 day simple moving average is $11.41 and its 200 day simple moving average is $9.13. The company has a market capitalization of $3.93 billion, a PE ratio of -33.39 and a beta of 0.61.

Patterson-UTI Energy (NASDAQ:PTEN) last released its quarterly earnings results on Wednesday, April 22nd. The oil and gas company reported ($0.06) EPS for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $1.12 billion during the quarter, compared to analysts’ expectations of $1.11 billion. The firm’s quarterly revenue was down 12.7% on a year-over-year basis. As a group, research analysts anticipate that Patterson-UTI Energy, Inc. will post -0.15 EPS for the current fiscal year.

Patterson-UTI Energy Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were paid a dividend of $0.10 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $0.40 dividend on an annualized basis and a dividend yield of 3.9%. Patterson-UTI Energy’s dividend payout ratio is currently -129.03%.

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.