Patterson-UTI Energy (NASDAQ:PTEN) Shares Gap Down – Here’s Why

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) shares gapped down prior to trading on Wednesday . The stock had previously closed at $12.41, but opened at $11.55. Patterson-UTI Energy shares last traded at $11.7770, with a volume of 1,295,679 shares traded.

Key Patterson-UTI Energy News

Here are the key news stories impacting Patterson-UTI Energy this week:

• Positive Sentiment: Zacks Research raised earnings estimates across multiple periods, including FY2026-FY2028, and now sees PTEN reaching positive EPS by FY2028. The firm also keeps a Strong-Buy rating, which is a bullish signal for investors. Zacks estimate revisions
• Positive Sentiment: Barclays upgraded Patterson-UTI Energy from equal weight to overweight and lifted its price target to $15, suggesting analysts see further upside from recent levels. Barclays upgrade
• Neutral Sentiment: PTEN reported April drilling activity of 88 average U.S. rigs operating. This indicates steady operations, but it is mostly a routine update and does not by itself change the earnings outlook. Drilling activity report
• Negative Sentiment: Director Cesar Jaime sold 10,000 shares on May 5, which can weigh on sentiment because insider selling sometimes raises questions about management confidence. SEC filing

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on PTEN. Morgan Stanley boosted their price target on Patterson-UTI Energy from $7.00 to $10.00 and gave the stock an “equal weight” rating in a research report on Wednesday, April 15th. Capital One Financial upgraded shares of Patterson-UTI Energy from an “equal weight” rating to an “overweight” rating and set a $12.00 price objective for the company in a report on Monday, April 20th. Stifel Nicolaus boosted their price objective on shares of Patterson-UTI Energy from $11.00 to $14.00 and gave the stock a “buy” rating in a report on Friday, April 24th. Barclays upgraded shares of Patterson-UTI Energy from an “equal weight” rating to an “overweight” rating and boosted their price objective for the stock from $10.00 to $15.00 in a report on Thursday. Finally, Zacks Research upgraded shares of Patterson-UTI Energy from a “hold” rating to a “strong-buy” rating in a report on Friday, April 10th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $11.80.

Patterson-UTI Energy Stock Performance

The company has a market capitalization of $4.34 billion, a PE ratio of -36.84 and a beta of 0.64. The business’s fifty day moving average is $10.39 and its two-hundred day moving average is $7.99. The company has a current ratio of 1.84, a quick ratio of 1.63 and a debt-to-equity ratio of 0.39.

Patterson-UTI Energy (NASDAQ:PTEN) last announced its quarterly earnings data on Wednesday, April 22nd. The oil and gas company reported ($0.06) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.10) by $0.04. Patterson-UTI Energy had a negative net margin of 2.56% and a negative return on equity of 2.32%. The company had revenue of $1.12 billion during the quarter, compared to analyst estimates of $1.11 billion. Patterson-UTI Energy’s revenue was down 12.7% on a year-over-year basis. Equities research analysts predict that Patterson-UTI Energy, Inc. will post -0.22 earnings per share for the current year.

Patterson-UTI Energy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be issued a dividend of $0.10 per share. This represents a $0.40 annualized dividend and a dividend yield of 3.5%. The ex-dividend date of this dividend is Monday, June 1st. Patterson-UTI Energy’s dividend payout ratio is presently -129.03%.

Insider Activity

In other news, CEO William Andrew Hendricks, Jr. sold 250,000 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $11.85, for a total transaction of $2,962,500.00. Following the transaction, the chief executive officer directly owned 2,823,103 shares of the company’s stock, valued at $33,453,770.55. This represents a 8.14% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Cesar Jaime sold 10,000 shares of the stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $12.29, for a total value of $122,900.00. Following the transaction, the director directly owned 77,462 shares in the company, valued at $952,007.98. The trade was a 11.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 808,949 shares of company stock valued at $9,387,035 in the last ninety days. 2.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Patterson-UTI Energy

Several hedge funds and other institutional investors have recently modified their holdings of the company. Baader Bank Aktiengesellschaft bought a new position in shares of Patterson-UTI Energy during the 1st quarter valued at $216,000. Convergence Investment Partners LLC bought a new position in shares of Patterson-UTI Energy during the 1st quarter valued at $1,325,000. Dimensional Fund Advisors LP lifted its holdings in shares of Patterson-UTI Energy by 14.9% during the 1st quarter. Dimensional Fund Advisors LP now owns 21,211,576 shares of the oil and gas company’s stock valued at $229,732,000 after buying an additional 2,745,872 shares during the period. Assetmark Inc. lifted its holdings in shares of Patterson-UTI Energy by 8.1% during the 1st quarter. Assetmark Inc. now owns 23,797 shares of the oil and gas company’s stock valued at $258,000 after buying an additional 1,786 shares during the period. Finally, Independent Financial Group LLC bought a new position in shares of Patterson-UTI Energy during the 1st quarter valued at $408,000. 97.91% of the stock is owned by institutional investors.

Patterson-UTI Energy Company Profile

Patterson-UTI Energy provides a comprehensive suite of onshore contract drilling and pressure pumping services to exploration and production companies in North America. The company’s core offerings include land-based drilling rigs, directional drilling, hydraulic fracturing services, downhole tool rental and well-servicing equipment. By integrating drilling and completion capabilities, Patterson-UTI Energy offers operators a streamlined solution designed to improve operational efficiency and well performance.

Headquartered in Houston, Texas, Patterson-UTI Energy traces its origins to its founding in 1978 and was later incorporated in Delaware in 1996.