Patterson-UTI Energy (NASDAQ:PTEN) Shares Gap Down – Time to Sell?

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) shares gapped down prior to trading on Wednesday . The stock had previously closed at $12.41, but opened at $11.55. Patterson-UTI Energy shares last traded at $11.7770, with a volume of 1,295,679 shares.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Bank of America reaffirmed a “buy” rating on shares of Patterson-UTI Energy in a research report on Monday, March 2nd. Barclays boosted their price objective on shares of Patterson-UTI Energy from $8.00 to $10.00 and gave the company an “equal weight” rating in a research note on Monday, April 27th. Zacks Research upgraded Patterson-UTI Energy from a “hold” rating to a “strong-buy” rating in a report on Friday, April 10th. The Goldman Sachs Group increased their target price on Patterson-UTI Energy from $9.00 to $11.00 and gave the stock a “buy” rating in a research report on Wednesday, April 15th. Finally, Piper Sandler lifted their target price on Patterson-UTI Energy from $10.00 to $12.00 and gave the company a “neutral” rating in a report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, five have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Patterson-UTI Energy has an average rating of “Hold” and an average price target of $11.30.

Patterson-UTI Energy Stock Down 6.7%

The firm’s 50-day moving average price is $10.27 and its 200-day moving average price is $7.91. 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 company has a market cap of $4.40 billion, a price-to-earnings ratio of -37.35 and a beta of 0.64.

Patterson-UTI Energy (NASDAQ:PTEN) last posted 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. The business’s revenue was down 12.7% compared to the same quarter last year. Sell-side analysts forecast that Patterson-UTI Energy, Inc. will post -0.22 earnings per share for the current fiscal year.

Patterson-UTI Energy Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be paid a dividend of $0.10 per share. This represents a $0.40 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Monday, June 1st. Patterson-UTI Energy’s payout ratio is currently -129.03%.

Insider Activity

In related news, CEO William Andrew Hendricks, Jr. sold 250,000 shares of the business’s stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $11.85, for a total transaction of $2,962,500.00. Following the transaction, the chief executive officer directly owned 2,823,103 shares of the company’s stock, valued at approximately $33,453,770.55. The trade was a 8.14% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Robert Wayne Drummond, Jr. sold 61,475 shares of the company’s stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $12.02, for a total value of $738,929.50. Following the completion of the transaction, the director owned 1,128,773 shares of the company’s stock, valued at approximately $13,567,851.46. This represents a 5.16% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 798,949 shares of company stock valued at $9,264,135 in the last ninety days. Company insiders own 2.20% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. O Shaughnessy Asset Management LLC grew 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 purchasing an additional 1,420 shares in the last quarter. Aster Capital Management DIFC Ltd lifted its holdings in Patterson-UTI Energy by 21.6% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 8,717 shares of the oil and gas company’s stock worth $53,000 after buying an additional 1,547 shares in the last quarter. Sage Rhino Capital LLC lifted its holdings in Patterson-UTI Energy by 6.6% in the 4th 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 in the last quarter. Assetmark Inc. boosted its position in Patterson-UTI Energy by 8.1% in the 1st quarter. Assetmark Inc. now owns 23,797 shares of the oil and gas company’s stock valued at $258,000 after buying an additional 1,786 shares during the last quarter. Finally, The Manufacturers Life Insurance Company boosted its position in Patterson-UTI Energy by 0.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 370,476 shares of the oil and gas company’s stock valued at $2,197,000 after buying an additional 1,915 shares during the last quarter. 97.91% of the stock is owned by institutional investors and hedge funds.

About Patterson-UTI Energy

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.