Zacks Investment Research Upgrades Patterson-UTI Energy (PTEN) to Hold

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Patterson-UTI Energy (NASDAQ:PTEN) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued on Friday.

According to Zacks, “Patterson-UTI's business is set to benefit from the recovery in land rig count and the bullishness in activity and pricing. As it is, PTEN’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 PTENs scale and customer base but will also provide a huge impetus to the earnings and revenues in the coming quarters. However, PTEN's sluggish pressure pumping operations on the back of oversupply and operational delays is expected to be a drag throughout 2018. PTEN’s increase in direct operating costs and declining cash balance are concerns as well. Hence, Patterson-UTI warrants a cautious stance from the investors.”

PTEN has been the subject of several other reports. BidaskClub upgraded shares of Patterson-UTI Energy from a “hold” rating to a “buy” rating in a research report on Saturday, April 28th. Societe Generale cut shares of Patterson-UTI Energy from a “buy” rating to a “hold” rating and set a $22.00 price objective for the company. in a research report on Thursday, April 19th. BMO Capital Markets set a $23.00 price objective on shares of Patterson-UTI Energy and gave the stock a “buy” rating in a research report on Wednesday, July 11th. ValuEngine cut shares of Patterson-UTI Energy from a “hold” rating to a “sell” rating in a report on Saturday, May 26th. Finally, Citigroup raised their price target on shares of Patterson-UTI Energy from $24.00 to $25.00 and gave the stock a “buy” rating in a report on Monday, April 30th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and seventeen have assigned a buy rating to the stock. Patterson-UTI Energy currently has an average rating of “Buy” and a consensus target price of $24.31.

PTEN opened at $16.99 on Friday. Patterson-UTI Energy has a twelve month low of $14.60 and a twelve month high of $25.03. The company has a quick ratio of 1.54, a current ratio of 1.68 and a debt-to-equity ratio of 0.29. The firm has a market cap of $3.72 billion, a PE ratio of -21.24 and a beta of 1.16.

Patterson-UTI Energy (NASDAQ:PTEN) last posted its quarterly earnings data on Thursday, July 26th. The oil and gas company reported ($0.05) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of ($0.04) by ($0.01). Patterson-UTI Energy had a negative return on equity of 2.64% and a net margin of 3.72%. The firm had revenue of $854.42 million for the quarter, compared to analyst estimates of $866.96 million. During the same quarter last year, the company earned ($0.46) earnings per share. The company’s quarterly revenue was up 47.5% compared to the same quarter last year. research analysts anticipate that Patterson-UTI Energy will post -0.37 earnings per share for the current fiscal year.

Large investors have recently bought and sold shares of the business. Point72 Asia Hong Kong Ltd lifted its stake in shares of Patterson-UTI Energy by 2,863.0% in the first quarter. Point72 Asia Hong Kong Ltd now owns 6,815 shares of the oil and gas company’s stock valued at $119,000 after buying an additional 6,585 shares in the last quarter. WINTON GROUP Ltd bought a new position in shares of Patterson-UTI Energy in the first quarter valued at $180,000. Wealthsource Partners LLC bought a new position in shares of Patterson-UTI Energy in the second quarter valued at $198,000. Edgestream Partners L.P. bought a new position in shares of Patterson-UTI Energy in the second quarter valued at $210,000. Finally, Tokio Marine Asset Management Co. Ltd. bought a new position in shares of Patterson-UTI Energy in the first quarter valued at $236,000. Institutional investors and hedge funds own 97.92% of the company’s stock.

About Patterson-UTI Energy

Patterson-UTI Energy, Inc, through its subsidiaries, provides onshore contract drilling services to oil and natural gas operators in the United States and Canada. It operates through two segments, Contract Drilling and Pressure Pumping. The Contract Drilling segment markets its contract drilling services primarily in Texas, southeastern New Mexico, northern Louisiana, Colorado, Wyoming, North Dakota, western Oklahoma, Pennsylvania, Ohio, West Virginia, and western Canada.

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