Taking on analysts’ expectations and winning: Patterson-UTI Energy Inc. (PTEN)

Patterson-UTI Energy Inc. (NASDAQ: PTEN) stock jumped 0.81% on Tuesday to $16.25 against a previous-day closing price of $16.12. With 2.43 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.49 million shares. During the session, the Oil & Gas Drilling company that operates in wider Energy sector, reached to the highest price of $16.43 whereas the lowest price it dropped to was $15.76. The 52-week range on PTEN shows that it touched its highest point at $20.53 and its lowest point at $8.77 during that stretch. It currently has a 1-year price target of $23.32. With its current market cap of 3.51 billion, PTEN has annualized dividend of $0.32 while the current yield stands at 1.97%. Beta for the stock currently stands at 2.36.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of PTEN was down-trending over the past week, with a drop of -5.41%, but this was down by -2.23% over a month. Three-month performance surged to 8.62% while six-month performance rose 13.16%. The stock gained 72.87% in the past year, while it has lost -3.50% so far this year. A look at the trailing 12-month EPS for PTEN yields -1.45 with Next year EPS estimates of 2.25. For the next quarter, that number is 0.41. This implies an EPS growth rate of 21.20% for this year and 252.03% for next year.

Float and Shares Shorts:

At present, 216.82 million PTEN shares are outstanding with a float of 212.38 million shares on hand for trading. On Oct 13, 2022, short shares totaled 9.05 million, which was 4.17% higher than short shares on Sep 14, 2022. In addition to Mr. William Andrew Hendricks Jr. as the firm’s Pres, CEO & Director, Mr. C. Andrew Smith serves as its Exec. VP & CFO.

Institutional Ownership:

Through their ownership of 99.83% of PTEN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.56% of PTEN, in contrast to 35.01% held by mutual funds. Shares owned by individuals account for 3.99%. As the largest shareholder in PTEN with 15.57% of the stake, BlackRock Fund Advisors holds 33,751,687 shares worth 33,751,687. A second-largest stockholder of PTEN, The Vanguard Group, Inc., holds 25,170,552 shares, controlling over 11.61% of the firm’s shares. Macquarie Investment Management B is the third largest shareholder in PTEN, holding 13,888,001 shares or 6.41% stake. With a 7.39% stake in PTEN, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 16,013,503 shares are owned by the mutual fund manager. The VanEck Oil Services ETF, which owns about 3.38% of PTEN stock, is the second-largest Mutual Fund holder. It holds 7,318,312 shares valued at 123.24 million. Vanguard Total Stock Market Index holds 3.04% of the stake in PTEN, owning 6,591,042 shares worth 110.99 million.


Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PTEN since 17 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With PTEN analysts setting a high price target of $28.00 and a low target of $18.00, the average target price over the next 12 months is $23.32. Based on these targets, PTEN could surge 72.31% to reach the target high and rise by 10.77% to reach the target low. Reaching the average price target will result in a growth of 43.51% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. PTEN will report FY 2022 earnings on 02/08/2024. Analysts have provided yearly estimates in a range of $0.72 being high and $0.48 being low. For PTEN, this leads to a yearly average estimate of $0.64. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Patterson-UTI Energy Inc. surprised analysts by $0.11 when it reported $0.29 EPS against a consensus estimate of $0.18. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is $0.49 and the low estimate is $0.27. The average estimate for the next quarter is thus $0.41.


Dividends & Yield:

In terms of dividends, PTEN has a current ratio of $0.32, which is $0.32 over the trailing 12-months, while a dividend of $0.12 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and PTEN currently yields $1.23. In the past year, PTEN’s dividend yield has been $1.23, but when looking at the stock over the past five years, its yield has been $1.55. Accordingly, PTEN has a current buyback yield of $0.44. This was $0.44 for the TTM, and it was $7.64 for the past five years.

Summary of Insider Activity:

Insiders traded PTEN stock several times over the past three months with 7 Buys and 2 Sells. In these transactions, 75,707 shares were bought while 75,001 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 59 over the past year. The total number of shares bought during that period was 1,414,189 while 2,687,326 shares were sold.

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