Patterson-UTI Energy (NASDAQ:PTEN) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Monday.

According to Zacks, “Patterson-UTI's business is set to benefit from the recovery in land rig count and the bullishness in activity and pricing. As it is, PTEN’s proprietary design and technologically advanced ‘Apex’ rigs are better suited for the new demands of the exploration business thereby commanding higher dayrates and utilization than rigs from other land drillers. Further, the strategic acquisitions of Seventy Seven and MS Energy have not only bolstered PTENs scale and customer base but will also provide a huge impetus to the earnings and revenues in the coming quarters. However, PTEN's sluggish pressure pumping operations on the back of oversupply and operational delays is expected to be a drag throughout 2018. PTEN’s increase in direct operating costs and declining cash balance are concerns as well. Hence, Patterson-UTI warrants a cautious stance from the investors.”

Several other equities analysts have also recently issued reports on PTEN. BidaskClub upgraded shares of Patterson-UTI Energy from a “buy” rating to a “strong-buy” rating in a research report on Friday, May 18th. ValuEngine cut shares of Patterson-UTI Energy from a “hold” rating to a “sell” rating in a research report on Saturday, May 26th. Guggenheim cut shares of Patterson-UTI Energy from a “buy” rating to a “neutral” rating in a research report on Friday, July 6th. BMO Capital Markets set a $23.00 price target on shares of Patterson-UTI Energy and gave the company a “buy” rating in a research report on Wednesday, July 11th. Finally, Macquarie upgraded shares of Patterson-UTI Energy from an “underperform” rating to a “neutral” rating in a research report on Thursday, July 26th. One analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have given a buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average target price of $24.31.

PTEN stock opened at $17.25 on Monday. Patterson-UTI Energy has a 12-month low of $14.60 and a 12-month high of $25.03. The stock has a market capitalization of $3.77 billion, a price-to-earnings ratio of -21.38 and a beta of 1.17. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.54 and a current ratio of 1.68.

Patterson-UTI Energy (NASDAQ:PTEN) last announced its quarterly earnings results on Thursday, July 26th. The oil and gas company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.04) by ($0.01). Patterson-UTI Energy had a net margin of 3.72% and a negative return on equity of 2.64%. The company had revenue of $854.42 million for the quarter, compared to analysts’ expectations of $866.96 million. During the same quarter in the prior year, the firm earned ($0.46) EPS. Patterson-UTI Energy’s quarterly revenue was up 47.5% compared to the same quarter last year. equities analysts predict that Patterson-UTI Energy will post -0.37 EPS for the current year.

A number of large investors have recently bought and sold shares of the stock. Bank of New York Mellon Corp boosted its stake in Patterson-UTI Energy by 8.3% during the second quarter. Bank of New York Mellon Corp now owns 3,764,590 shares of the oil and gas company’s stock worth $67,762,000 after acquiring an additional 289,056 shares in the last quarter. Advisors Asset Management Inc. boosted its stake in Patterson-UTI Energy by 8.0% during the second quarter. Advisors Asset Management Inc. now owns 65,236 shares of the oil and gas company’s stock worth $1,174,000 after acquiring an additional 4,856 shares in the last quarter. Energy Opportunities Capital Management LLC boosted its stake in Patterson-UTI Energy by 20.3% during the second quarter. Energy Opportunities Capital Management LLC now owns 373,655 shares of the oil and gas company’s stock worth $6,726,000 after acquiring an additional 62,950 shares in the last quarter. Green Square Capital LLC bought a new stake in Patterson-UTI Energy during the second quarter worth about $638,000. Finally, Jane Street Group LLC bought a new stake in Patterson-UTI Energy during the second quarter worth about $552,000. 96.27% of the stock is currently owned by institutional investors and hedge funds.

About Patterson-UTI Energy

Patterson-UTI Energy, Inc, through its subsidiaries, provides onshore contract drilling services to oil and natural gas operators in the United States and Canada. It operates through two segments, Contract Drilling and Pressure Pumping. The Contract Drilling segment markets its contract drilling services primarily in Texas, southeastern New Mexico, northern Louisiana, Colorado, Wyoming, North Dakota, western Oklahoma, Pennsylvania, Ohio, West Virginia, and western Canada.

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Analyst Recommendations for Patterson-UTI Energy (NASDAQ:PTEN)

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