Is Patterson-UTI Energy, Inc. (PTEN) In An Encouraging Spot?

Patterson-UTI Energy, Inc. (NASDAQ:PTEN) receieved a new analyst call from BofA/Merrill, which initiated the stock at Buy on October 18. Analysts at Wolfe Research, started covering the stock on October 10 with a Peer Perform rating. Analysts at Bernstein, made their first call about the stock on October 05, recommending it is Outperform.

Patterson-UTI Energy, Inc. (PTEN) grew as high as $13.3 on Thursday before closing at $12.82. The -5.87 percent plunge dragged its market cap to $2.96B. The shares went down as low as $12.55 before recovering. Trading activity significantly improved as the volume at ready counter increased to 5,283,011 shares versus 3,032,870 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 3,527,808 shares. The stock is now -5.67% above against its bear-market low of $13.59 on December 06, 2018. It has retreated -95.24% since it’s 52-week high of $25.03 reached in January. Now the market price is down -39.7% on the year and down -44.29% YTD.

PTEN’s 50 day simple moving average (SMA 50) price is $15.95 and its 200-day simple moving average (SMA 200) price is $18.01. The company’s stock currently has a total float of 212.35M shares. Its weekly volatility is hovering around 5.37% and felt 4.69% volatility in price over a month. On the upside, the share price will test short term resistance at around $13.23. On a downside, the stock is likely to find some support, which begins at $12.48. The failure to get near-term support could push it to $12.14.

Separately, it has been reported that multiple insider activity took place at Patterson-UTI Energy, Inc. (PTEN). Director Hunt Terry H sold 10,000 shares for $50,491 in transaction occurred on 2018/03/13. After making this transaction, the Director owns a direct stake of 194,600 shares, worth $647,295, as per the last closing price. On 2018/01/02 Thom Tiffany J, Director at PTEN, dumped 2,574 shares at an average price of $23.08 per share. The selling total is valued at $198,710.

Director, Conlon Michael W had invested in 3,000 shares for $15,000 through a trade on 2014/10/29. Following this activity, the insider holds 69,990 shares worth $192,300 as of recent close. Wall Street’s most bullish Patterson-UTI Energy, Inc. (NASDAQ:PTEN) analysts are predicting the share price to blow past $28 per share during the next 12 months. The current median share price forecast by them is $21, suggesting that the stock could increase 63.81% in that time frame. The average price target of $21.19 calls for a nearly 65.29% increase in the stock price.

Also, it is trading at rather inexpensive levels at just over 0.74x price/book and 0.89x price/sales. Compared to others, Patterson-UTI Energy, Inc. is in a different league with regards to profitability, having net margins of 2.3%. To put some perspective around this, the industry’s average net margin is -74%. PTEN’s ROE is 1.9%, which is also considerably better than the industry’s ROE of -47.92%. It’s also very liquid in the near term, with a current ratio of 1.7. The stock has a debt/capital of 0.3.

Shares of Patterson-UTI Energy, Inc. (PTEN) have dropped -2.3% since the company’s last earnings report. Over the past 12 fiscal quarters, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has topped consensus earnings estimates in 8 quarters (66%), missed earnings in 3 quarters (25%), whereas at 1 occasion EPS met analyst expectations. PTEN last reported earnings on October 25, 2018 when it released Sep-18 results that exceeded expectations. The company raked in -$0.1 per share, -99.27% change on the same period last year. That was better than consensus for -$0.12. Revenue for the recent quarter stood at $867.48 million, up 27% on last year and above the $846.06 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $778.85 million to $843 million, which should be compared with $841.9 million generated last year. EPS is seen in a range of -$0.19 to -$0.11, against the 0 reported a year ago.