Zacks Investment Research downgraded shares of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) from a hold rating to a sell rating in a research note released on Thursday.

According to Zacks, “Despite early signs of recovery in North America, the current oilfield environment remains one of the most difficult. With new competitors entering the market and drilling contractors too rattled to make new investment decisions, oilfield machineries and equipment suppliers like Patterson-UTI Energy have seen their pricing fall drastically. As it is, the ongoing weakness in commodity prices – despite the OPEC-driven recovery – has curtailed energy drilling and equipment demand thereby affecting Patterson-UTI’s revenues, earnings and cash flow. Given these headwinds, we see PTEN as a risky bet that ordinary investors should exit.”

PTEN has been the subject of several other research reports. Deutsche Bank AG lowered their price objective on Patterson-UTI Energy from $31.00 to $28.00 and set a hold rating for the company in a research note on Friday, April 28th. BidaskClub raised Patterson-UTI Energy from a sell rating to a hold rating in a research note on Tuesday, June 13th. BMO Capital Markets reaffirmed a hold rating and issued a $28.00 price objective on shares of Patterson-UTI Energy in a research note on Thursday, April 13th. Tudor Pickering raised Patterson-UTI Energy from a hold rating to a buy rating in a research note on Monday, April 3rd. Finally, Evercore ISI reaffirmed an outperform rating and issued a $35.00 price objective on shares of Patterson-UTI Energy in a research note on Tuesday, June 6th. Three investment analysts have rated the stock with a sell rating, fourteen have assigned a hold rating and fifteen have assigned a buy rating to the company. Patterson-UTI Energy currently has a consensus rating of Hold and a consensus target price of $26.84.

Shares of Patterson-UTI Energy (PTEN) traded down 0.77% during midday trading on Thursday, hitting $19.36. 528,074 shares of the stock traded hands. The firm’s 50-day moving average is $20.11 and its 200 day moving average is $23.63. Patterson-UTI Energy has a 52 week low of $17.61 and a 52 week high of $29.76. The company’s market capitalization is $3.19 billion.

Patterson-UTI Energy (NASDAQ:PTEN) last posted its earnings results on Thursday, July 27th. The oil and gas company reported ($0.21) EPS for the quarter, topping analysts’ consensus estimates of ($0.30) by $0.09. Patterson-UTI Energy had a negative net margin of 23.78% and a negative return on equity of 11.28%. The firm had revenue of $579 million during the quarter, compared to analysts’ expectations of $556.47 million. During the same quarter in the prior year, the business earned ($0.58) earnings per share. The business’s revenue for the quarter was up 198.5% compared to the same quarter last year. Equities analysts forecast that Patterson-UTI Energy will post ($1.04) earnings per share for the current year.

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The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 21st. Shareholders of record on Thursday, September 7th will be paid a dividend of $0.02 per share. This represents a $0.08 annualized dividend and a yield of 0.41%. The ex-dividend date of this dividend is Wednesday, September 6th. Patterson-UTI Energy’s dividend payout ratio (DPR) is presently -4.06%.

A number of institutional investors have recently modified their holdings of the stock. Russell Investments Group Ltd. boosted its position in shares of Patterson-UTI Energy by 14.0% in the first quarter. Russell Investments Group Ltd. now owns 199,723 shares of the oil and gas company’s stock valued at $4,847,000 after buying an additional 24,511 shares during the period. Nikko Asset Management Americas Inc. boosted its position in shares of Patterson-UTI Energy by 0.7% in the first quarter. Nikko Asset Management Americas Inc. now owns 13,500 shares of the oil and gas company’s stock valued at $328,000 after buying an additional 100 shares during the period. First Mercantile Trust Co. bought a new position in shares of Patterson-UTI Energy during the first quarter valued at $263,000. ProShare Advisors LLC boosted its position in shares of Patterson-UTI Energy by 6.8% in the first quarter. ProShare Advisors LLC now owns 28,449 shares of the oil and gas company’s stock valued at $690,000 after buying an additional 1,818 shares during the period. Finally, Nationwide Fund Advisors boosted its position in shares of Patterson-UTI Energy by 4.1% in the first quarter. Nationwide Fund Advisors now owns 336,211 shares of the oil and gas company’s stock valued at $8,160,000 after buying an additional 13,091 shares during the period. Institutional investors and hedge funds own 85.05% of the company’s stock.

Patterson-UTI Energy Company Profile

Patterson-UTI Energy, Inc is an oilfield services company. The Company owns and operates a fleet of land-based drilling rigs and a fleet of pressure pumping equipment in the United States. The Company’s segments include Contract Drilling, Pressure Pumping and Other operations. The Contract Drilling segment markets its contract drilling services to independent and other oil and natural gas operators.

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

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