Patterson-UTI Energy (NASDAQ:PTEN) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Patterson-UTI Energy (NASDAQ:PTEN) had its price objective lifted by equities researchers at Royal Bank Of Canada from $15.00 to $17.00 in a report released on Friday, Benzinga reports. The brokerage currently has an “outperform” rating on the oil and gas company’s stock. Royal Bank Of Canada‘s price objective suggests a potential upside of 29.52% from the company’s current price.

Several other analysts have also issued reports on PTEN. Zacks Research lowered shares of Patterson-UTI Energy from a “strong-buy” rating to a “hold” rating in a research note on Thursday, August 27th. Susquehanna boosted their target price on Patterson-UTI Energy from $13.00 to $15.00 and gave the stock a “positive” rating in a research report on Friday. Piper Sandler reiterated an “overweight” rating on shares of Patterson-UTI Energy in a research report on Friday, August 21st. Weiss Ratings upgraded shares of Patterson-UTI Energy from a “sell (d+)” rating to a “hold (c-)” rating in a report on Thursday, October 8th. Finally, Barclays raised their price objective on shares of Patterson-UTI Energy from $16.00 to $17.00 and gave the stock an “overweight” rating in a report on Friday. Nine analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, Patterson-UTI Energy has a consensus rating of “Moderate Buy” and an average target price of $13.59.

Patterson-UTI Energy Stock Up 3.4%

Shares of PTEN stock traded up $0.43 on Friday, reaching $13.12. 3,276,625 shares of the company were exchanged, compared to its average volume of 9,431,620. The company has a debt-to-equity ratio of 0.40, a current ratio of 1.75 and a quick ratio of 1.57. Patterson-UTI Energy has a one year low of $5.24 and a one year high of $13.39. The company has a 50-day moving average of $11.87 and a 200-day moving average of $10.48. The company has a market cap of $5.01 billion, a price-to-earnings ratio of -218.92 and a beta of 0.77.

Patterson-UTI Energy (NASDAQ:PTEN) last issued its earnings results on Wednesday, October 28th. The oil and gas company reported $0.07 earnings per share for the quarter, topping analysts’ consensus estimates of $0.04 by $0.03. Patterson-UTI Energy had a negative return on equity of 0.58% and a negative net margin of 0.52%. The company had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same period in the prior year, the firm earned ($0.10) earnings per share. Patterson-UTI Energy’s revenue for the quarter was up 14.1% on a year-over-year basis. Analysts anticipate that Patterson-UTI Energy will post 0.01 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Robert Drummond Jr. sold 198,395 shares of the firm’s stock in a transaction dated 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 transaction, the director owned 928,773 shares of the company’s stock, valued at $11,934,733.05. This trade represents a 17.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Seth Wexler sold 120,000 shares of Patterson-UTI Energy stock in a transaction that occurred on 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 transaction, the executive vice president directly owned 404,582 shares in the company, valued at $5,158,420.50. This represents a 22.88% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 1,027,000 shares of company stock worth $12,698,780. Corporate insiders own 2.20% of the company’s stock.

Hedge Funds Weigh In On Patterson-UTI Energy

Several institutional investors have recently bought and sold shares of the stock. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in Patterson-UTI Energy in the 2nd quarter worth $32,000. Rockefeller Capital Management L.P. boosted its stake in Patterson-UTI Energy by 187.6% during 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 buying an additional 4,299 shares during the last quarter. Nykredit A S bought a new stake in Patterson-UTI Energy in the 2nd quarter worth approximately $56,000. Reyes Financial Architecture Inc. bought a new position in shares of Patterson-UTI Energy during the 3rd quarter valued at approximately $60,000. Finally, Farther Finance Advisors LLC grew its holdings in shares of Patterson-UTI Energy by 39.7% in the third quarter. Farther Finance Advisors LLC now owns 6,096 shares of the oil and gas company’s stock valued at $67,000 after purchasing an additional 1,732 shares in the last quarter. 97.91% of the stock is owned by hedge funds and other institutional investors.

Patterson-UTI Energy News Summary

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

• Positive Sentiment: Q3 earnings and revenue beat expectations. Patterson-UTI reported adjusted earnings of $0.07 per share versus the $0.04 consensus estimate, while revenue increased 14.1% year over year to $1.34 billion, above the $1.31 billion forecast. The company also improved from a $0.10-per-share loss in the prior-year quarter. Patterson-UTI Energy quarterly earnings report
• Positive Sentiment: Management maintained a constructive outlook. Patterson-UTI expects fourth-quarter drilling services adjusted gross profit of approximately $150 million and plans to keep full-year 2026 capital expenditures below $600 million. The combination of projected profitability and spending discipline is supportive for cash flow and valuation. Patterson-UTI Q4 outlook
• Positive Sentiment: Analysts raised their price targets. Barclays increased its target from $16 to $17 and reaffirmed an “overweight” rating, implying roughly 30% upside from the referenced price. Susquehanna raised its target from $13 to $15 and assigned a “positive” rating, indicating additional bullish sentiment from Wall Street.
• Positive Sentiment: The quarterly dividend provides income support. Patterson-UTI declared a $0.10-per-share quarterly dividend, or $0.40 annualized, representing an approximately 3.2% yield at the referenced price. The dividend is payable December 15 to shareholders of record December 1.
• Neutral Sentiment: Profitability remains modest. Despite the earnings beat, the company reported a negative net margin of 0.52% and negative return on equity of 0.58%, underscoring that sustained improvement in drilling activity and margins remains important.

About Patterson-UTI Energy

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.