Zacks Investment Research downgraded shares of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) from a buy rating to a hold rating in a research note issued to investors on Monday.
According to Zacks, “Patterson-UTI displays impressive pricing strength and earnings surprise history. PTEN reported year-over-year growth in earnings and revenues in Q3 owing to solid contribution from Pressure Pumping segment. The company’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 Patterson-UTI's scale and customer base but will also provide a huge impetus to the company’s earnings and revenues in the coming quarters. However, we are concerned of the PTEN’s increasing expenses and lower rig margins. As it is, weakness in commodity pricing has curtailed drilling and equipment demand. Therefore we take a cautious stance on the stock. “
PTEN has been the topic of a number of other research reports. Credit Suisse Group decreased their target price on shares of Patterson-UTI Energy from $22.00 to $20.00 and set a neutral rating on the stock in a research note on Friday, September 22nd. Deutsche Bank AG initiated coverage on shares of Patterson-UTI Energy in a research note on Tuesday, October 10th. They set a buy rating and a $25.00 target price on the stock. Societe Generale initiated coverage on shares of Patterson-UTI Energy in a research note on Thursday, August 31st. They set a buy rating and a $22.00 target price on the stock. Royal Bank Of Canada reaffirmed a buy rating and set a $29.00 target price on shares of Patterson-UTI Energy in a research note on Thursday, July 20th. Finally, Jefferies Group LLC set a $26.00 target price on shares of Patterson-UTI Energy and gave the stock a buy rating in a research note on Saturday, July 29th. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and eighteen have given a buy rating to the stock. Patterson-UTI Energy has a consensus rating of Buy and a consensus price target of $26.62.
Patterson-UTI Energy (NASDAQ:PTEN) traded up 0.30% on Monday, reaching $19.81. The company’s stock had a trading volume of 3,173,579 shares. Patterson-UTI Energy has a 12 month low of $14.83 and a 12 month high of $29.76. The firm’s 50 day moving average is $19.73 and its 200-day moving average is $19.78. The firm’s market cap is $4.19 billion.
Patterson-UTI Energy (NASDAQ:PTEN) last posted its earnings results on Thursday, October 26th. The oil and gas company reported ($0.13) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.17) by $0.04. The firm had revenue of $684.99 million for the quarter, compared to analysts’ expectations of $688.05 million. Patterson-UTI Energy had a negative net margin of 14.73% and a negative return on equity of 7.80%. The company’s revenue was up 232.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.58) earnings per share. On average, equities research analysts anticipate that Patterson-UTI Energy will post ($0.86) EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 21st. Stockholders of record on Thursday, December 7th will be given a dividend of $0.02 per share. This represents a $0.08 annualized dividend and a dividend yield of 0.41%. The ex-dividend date of this dividend is Wednesday, December 6th. Patterson-UTI Energy’s payout ratio is presently -5.16%.
Large investors have recently bought and sold shares of the company. Riverhead Capital Management LLC grew its position in Patterson-UTI Energy by 86.2% in the 2nd quarter. Riverhead Capital Management LLC now owns 10,053 shares of the oil and gas company’s stock worth $203,000 after purchasing an additional 4,653 shares in the last quarter. PNC Financial Services Group Inc. grew its position in Patterson-UTI Energy by 11.7% in the 2nd quarter. PNC Financial Services Group Inc. now owns 10,392 shares of the oil and gas company’s stock worth $210,000 after purchasing an additional 1,089 shares in the last quarter. Madden Advisory Services Inc. bought a new stake in Patterson-UTI Energy in the 2nd quarter worth about $236,000. Gluskin Sheff & Assoc Inc. grew its position in Patterson-UTI Energy by 7.1% in the 2nd quarter. Gluskin Sheff & Assoc Inc. now owns 11,740 shares of the oil and gas company’s stock worth $237,000 after purchasing an additional 780 shares in the last quarter. Finally, Pacad Investment Ltd. bought a new stake in Patterson-UTI Energy in the 2nd quarter worth about $246,000. 98.70% of the stock is owned by institutional investors.
About Patterson-UTI Energy
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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