Patterson-UTI Energy Inc. (NASDAQ: PTEN): The Best-Of-Breed For Investing?


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Patterson-UTI Energy Inc. (NASDAQ:PTEN). The institutional investor has increased its shareholding in the Energy company by 10.46% to 19.83 million shares with purchase of 1.88 million shares. This fresh investment now brings its stake to 10.58% valued currently at $76.83 million. In addition, BlackRock Fund Advisors raised its holdings by 0.28 million to 19.05 million shares. And Renaissance Technologies LLC has lifted its position by 1.06% or 0.13 million shares – to 12.68 million shares.

    With over 2.97 million Patterson-UTI Energy Inc. (PTEN) shares trading Monday and a closing price of $3.85 on the day, the dollar volume was approximately $11.43 million. The shares have shown a negative weekly performance of -2.78% and its price on 08/31/20 lost nearly -3.02%. Currently, there are 186.63M common shares owned by the public and among those 181.84M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 24 analysts who have offered their price forecasts for PTEN have a consensus price objective of $4.03. The analysts have set the share’s price value over the next 12 months at a high of $6.00 and a low of $2.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Patterson-UTI Energy Inc. stock is 3.10 for the next 12 months. The average price target is -24.19% below its last price level and a downside to the estimated low will see the stock lose -92.5% over that period. But an upside of 35.83% will see the stock hit the forecast high price target while mean target price for the stock is $4.00.

    Insiders at the company have transacted a total of 34 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 24 of these insider trades were purchases, accounting for 1,495,628 shares. Insider sales of the common stock occurred on 10 occasions, with total insider shares sold totaling 49,026 shares.

    The top 3 mutual fund holders in Patterson-UTI Energy Inc. are iShares Core S&P Small Cap ETF, Undiscovered Managers Behavioral, and DFA US Small Cap Value Portfolio. iShares Core S&P Small Cap ETF owns 11.61 million shares of the company’s stock, all valued at over $44.98 million. The company bought an additional 0.81 million shares recently to bring their total holdings to about 6.19% of the shares outstanding. Undiscovered Managers Behavioral bought 0.3 million shares to see its total holdings expand to 6.7 million shares valued at over $25.96 million and representing 3.58% of the shares outstanding. DFA US Small Cap Value Portfolio bought 0.45 million shares to bring its total holdings to over 5.47 million shares at a value of $21.18 million. DFA US Small Cap Value Portfolio now owns shares totaling to 2.92% of the shares outstanding.

    Shares of Patterson-UTI Energy Inc. (NASDAQ: PTEN) opened at $3.97, unchanged from a prior closing price of $3.97. However, the script later closed the day at $3.85, down -3.02%. The company’s stock has a 5-day price change of -2.78% and -8.11% over the past three months. PTEN shares are trading -63.33% year to date (YTD), with the 12-month market performance down to -55.49% lower. It has a 12-month low price of $1.61 and touched a high of $11.19 over the same period. Currently, 2.97 million shares have been traded, compared to an average intraday trading volume of 6.61 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -7.26%, -0.65%, and -29.77% respectively.

    Institutional ownership of Patterson-UTI Energy Inc. (NASDAQ: PTEN) 186.63M shares outstanding. Mutual fund holders own 47.83%, while other institutional holders and individual stakeholders account for 62.91% and 4.61% respectively.

    It has a market capitalization of $699.70M and a beta (3y monthly) value of 2.76. The earnings-per-share (ttm) stands at -$4.84. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.00% over the week and 5.95% over the month.

    Analysts forecast that Patterson-UTI Energy Inc. (PTEN) will achieve an EPS of -$0.63 for the current quarter, -$0.63 for the next quarter and -$2.32 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.75 while analysts give the company a high EPS estimate of -$0.57. Comparatively, EPS for the current quarter was -$0.27 a year ago. Earnings per share for the fiscal year are expected to decrease by -42.60%, and -3.50% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 24 brokerage firm advisors rate Patterson-UTI Energy Inc. (PTEN) as a “Hold” at a consensus score of 3.10. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 13 of the 24 advise that investors “hold,” and 6 rated it as a “Sell.”

    Looking at the support for the PTEN, a number of firms have released research notes about the stock. Scotiabank stated their Sector Underperform rating for the stock in a research note on July 16, 2020, with the firm’s price target at. Gabelli & Co coverage for the Patterson-UTI Energy Inc. (PTEN) stock in a research note released on April 27, 2020 offered a Hold rating with a price target of. Cowen was of a view on April 14, 2020 that the stock is Market Perform, while Bernstein gave the stock Mkt Perform rating on April 06, 2020, issuing a price target of. Wolfe Research on their part issued Underperform rating on March 19, 2020.


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