Patterson-UTI Energy (PTEN) Downgraded to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Patterson-UTI Energy (NASDAQ:PTEN) from a hold rating to a sell rating in a research report sent to investors on Tuesday.

According to Zacks, “Despite the recovery in North America, the current oilfield environment remains one of the most difficult. We remain particularly worried by the increasing costs incurred by the company which is affecting its earnings and financials. We are also concerned about the company’s expected increase in average daily rig operating cost in the first quarter which may weigh on earnings. New rig contracts are expected to be signed at rates that are 30-40% less than the pre-downturn levels. This will result in lower rig margins. Considering these headwinds, we expect Patterson-UTI to perform below the industry, which gives investors little reason to hold the stock.”

A number of other analysts have also weighed in on PTEN. Jefferies Group set a $25.00 target price on Patterson-UTI Energy and gave the company a buy rating in a research note on Friday, February 9th. BMO Capital Markets set a $24.00 price target on Patterson-UTI Energy and gave the company a hold rating in a report on Friday, February 9th. Guggenheim set a $25.00 price target on Patterson-UTI Energy and gave the company a buy rating in a report on Thursday, February 15th. Cowen reiterated a market perform rating and issued a $23.00 price target (down previously from $30.00) on shares of Patterson-UTI Energy in a report on Friday, February 9th. Finally, Seaport Global Securities reiterated a hold rating and issued a $24.00 price target on shares of Patterson-UTI Energy in a report on Monday, February 12th. Three analysts have rated the stock with a sell rating, five have assigned a hold rating and twenty have issued a buy rating to the stock. Patterson-UTI Energy presently has a consensus rating of Buy and an average target price of $26.21.

Shares of Patterson-UTI Energy (NASDAQ:PTEN) opened at $17.96 on Tuesday. Patterson-UTI Energy has a 12 month low of $14.83 and a 12 month high of $28.73. The firm has a market capitalization of $4,000.00, a price-to-earnings ratio of 21.13 and a beta of 1.02. The company has a quick ratio of 1.16, a current ratio of 1.23 and a debt-to-equity ratio of 0.17.

Patterson-UTI Energy (NASDAQ:PTEN) last announced its earnings results on Thursday, February 8th. The oil and gas company reported ($0.10) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($0.08) by ($0.02). Patterson-UTI Energy had a net margin of 0.25% and a negative return on equity of 5.07%. The business had revenue of $787.33 million during the quarter, compared to analyst estimates of $764.84 million. During the same quarter last year, the business posted ($0.53) earnings per share. The business’s quarterly revenue was up 218.9% compared to the same quarter last year. sell-side analysts predict that Patterson-UTI Energy will post 0.01 EPS for the current year.

The business also recently announced a quarterly dividend, which will be paid on Thursday, March 22nd. Shareholders of record on Thursday, March 8th will be issued a dividend of $0.02 per share. This represents a $0.08 dividend on an annualized basis and a yield of 0.45%. The ex-dividend date is Wednesday, March 7th. Patterson-UTI Energy’s dividend payout ratio (DPR) is currently 9.41%.

In other Patterson-UTI Energy news, Director Tiffany J. Thom sold 2,574 shares of the firm’s stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $23.08, for a total transaction of $59,407.92. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. 4.60% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently modified their holdings of PTEN. PNC Financial Services Group Inc. boosted its holdings in Patterson-UTI Energy by 11.7% during the second quarter. PNC Financial Services Group Inc. now owns 10,392 shares of the oil and gas company’s stock worth $210,000 after buying an additional 1,089 shares during the last quarter. State Street Corp boosted its holdings in Patterson-UTI Energy by 9.3% during the second quarter. State Street Corp now owns 4,984,030 shares of the oil and gas company’s stock worth $100,628,000 after buying an additional 423,443 shares during the last quarter. The Manufacturers Life Insurance Company boosted its holdings in Patterson-UTI Energy by 1.3% during the second quarter. The Manufacturers Life Insurance Company now owns 446,475 shares of the oil and gas company’s stock worth $9,014,000 after buying an additional 5,552 shares during the last quarter. Raymond James Financial Services Advisors Inc. boosted its holdings in Patterson-UTI Energy by 8.6% during the second quarter. Raymond James Financial Services Advisors Inc. now owns 60,561 shares of the oil and gas company’s stock worth $1,223,000 after buying an additional 4,808 shares during the last quarter. Finally, California State Teachers Retirement System boosted its holdings in Patterson-UTI Energy by 15.0% during the second quarter. California State Teachers Retirement System now owns 383,913 shares of the oil and gas company’s stock worth $7,751,000 after buying an additional 50,038 shares during the last quarter. Hedge funds and other institutional investors own 95.41% of the company’s stock.

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About Patterson-UTI Energy

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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