Patterson-UTI Energy, Inc. (NASDAQ:PTEN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Tuesday. The firm currently has a $22.00 target price on the oil and gas company’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 11.22% from the company’s current price.
According to Zacks, “We are upgrading our investment thesis on Patterson-UTI to ‘Buy’ following the reported year-over-year growth in earnings and revenues in Q3 owing to solid contribution from Pressure Pumping segment and synergies from the acquisitions of Seventy Seven. PTEN displays impressive pricing strength and earnings surprise history. The company’s 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. The recent acquisition of MS Energy will also provide a huge impetus to the company’s earnings in the coming quarters. PTEN currently displays a much cleaner balancesheet with debt to capital ratio of just around 15% providing it with ample financial flexibility. As such we view higher dividends, share buybacks and more strategic M&A deals. Thus we take a bullish stance on the stock.”
Several other research firms have also issued reports on PTEN. Piper Jaffray Companies reissued a “neutral” rating and set a $20.50 target price (down from $22.00) on shares of Patterson-UTI Energy in a research note on Wednesday, July 12th. 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 Thursday, October 5th. Capital One Financial Corporation lowered shares of Patterson-UTI Energy from an “overweight” rating to an “equal weight” rating in a research note on Thursday, July 27th. Royal Bank Of Canada reissued 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, Credit Suisse Group increased their target price on shares of Patterson-UTI Energy from $17.00 to $21.00 and gave the stock a “neutral” rating in a research note on Friday, October 27th. One research analyst has rated the stock with a sell rating, ten have given a hold rating and eighteen have issued a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and an average price target of $26.71.
Patterson-UTI Energy (NASDAQ:PTEN) last posted its quarterly earnings results on Thursday, October 26th. The oil and gas company reported ($0.13) EPS for the quarter, beating the consensus estimate of ($0.17) by $0.04. Patterson-UTI Energy had a negative net margin of 14.73% and a negative return on equity of 7.80%. The company had revenue of $684.99 million for the quarter, compared to analyst estimates of $688.05 million. During the same period in the prior year, the company earned ($0.58) earnings per share. The firm’s revenue was up 232.3% on a year-over-year basis.
Several large investors have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its position in shares of Patterson-UTI Energy by 22.8% during the 2nd quarter. Vanguard Group Inc. now owns 16,761,217 shares of the oil and gas company’s stock worth $338,409,000 after purchasing an additional 3,115,388 shares during the period. BlackRock Inc. boosted its position in Patterson-UTI Energy by 11.5% in the 2nd quarter. BlackRock Inc. now owns 16,122,084 shares of the oil and gas company’s stock valued at $325,506,000 after buying an additional 1,660,164 shares during the period. Van ECK Associates Corp boosted its position in Patterson-UTI Energy by 6.2% in the 2nd quarter. Van ECK Associates Corp now owns 9,547,599 shares of the oil and gas company’s stock valued at $192,766,000 after buying an additional 559,430 shares during the period. JPMorgan Chase & Co. boosted its position in Patterson-UTI Energy by 39.4% in the 2nd quarter. JPMorgan Chase & Co. now owns 7,866,364 shares of the oil and gas company’s stock valued at $158,823,000 after buying an additional 2,224,128 shares during the period. Finally, State Street Corp boosted its position in Patterson-UTI Energy by 9.3% in the 2nd quarter. State Street Corp now owns 4,984,030 shares of the oil and gas company’s stock valued at $100,628,000 after buying an additional 423,443 shares during the period. 98.70% of the stock is owned by hedge funds and other institutional investors.
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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