Patterson-UTI Energy, Inc. (PTEN) Upgraded by Zacks Investment Research to Buy
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The firm currently has a $22.00 price target on the oil and gas company’s stock. Zacks Investment Research‘s target price would indicate a potential upside of 11.45% from the stock’s previous close.
According to Zacks, “We are upgrading our investment thesis on Patterson-UTI to ‘Buy’ following the reported year-over-year growth in earnings and revenues in Q3 owing to solid contribution from Pressure Pumping segment and synergies from the acquisitions of Seventy Seven. PTEN displays impressive pricing strength and earnings surprise history. The company’s 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. The recent acquisition of MS Energy will also provide a huge impetus to the company’s earnings in the coming quarters. PTEN currently displays a much cleaner balancesheet with debt to capital ratio of just around 15% providing it with ample financial flexibility. As such we view higher dividends, share buybacks and more strategic M&A deals. Thus we take a bullish stance on the stock.”
A number of other equities analysts have also recently commented on PTEN. Royal Bank Of Canada reiterated a “buy” rating and set a $29.00 price target on shares of Patterson-UTI Energy in a report on Thursday, July 20th. Jefferies Group LLC set a $26.00 price target on Patterson-UTI Energy and gave the stock a “buy” rating in a report on Thursday, October 5th. Deutsche Bank AG initiated coverage on Patterson-UTI Energy in a report on Tuesday, October 10th. They set a “buy” rating and a $25.00 price target for the company. Citigroup Inc. set a $24.00 price target on Patterson-UTI Energy and gave the stock a “buy” rating in a report on Thursday, October 5th. Finally, SunTrust Banks, Inc. reiterated a “buy” rating and set a $25.00 price target (down previously from $33.00) on shares of Patterson-UTI Energy in a report on Tuesday, October 3rd. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating and eighteen have issued a buy rating to the company. Patterson-UTI Energy has a consensus rating of “Buy” and an average price target of $26.62.
Shares of Patterson-UTI Energy (NASDAQ:PTEN) traded down 0.20% on Tuesday, reaching $19.71. The company’s stock had a trading volume of 1,708,205 shares. Patterson-UTI Energy has a 52-week low of $14.83 and a 52-week high of $29.76. The company’s market cap is $4.17 billion. The company has a 50 day moving average price of $19.73 and a 200 day moving average price of $19.78.
Patterson-UTI Energy (NASDAQ:PTEN) last released its earnings results on Thursday, October 26th. The oil and gas company reported ($0.13) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.17) by $0.04. The business had revenue of $684.99 million for the quarter, compared to the consensus estimate of $688.05 million. Patterson-UTI Energy had a negative return on equity of 7.80% and a negative net margin of 14.73%. Patterson-UTI Energy’s quarterly revenue was up 232.3% on a year-over-year basis. During the same quarter in the previous year, the business earned ($0.58) earnings per share. On average, analysts anticipate that Patterson-UTI Energy will post ($0.89) earnings per share for the current fiscal year.
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Large investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. increased its holdings in shares of Patterson-UTI Energy by 7.9% during the first quarter. PNC Financial Services Group Inc. now owns 9,303 shares of the oil and gas company’s stock worth $225,000 after buying an additional 683 shares in the last quarter. Riverhead Capital Management LLC increased its holdings in Patterson-UTI Energy by 86.2% in the second quarter. Riverhead Capital Management LLC now owns 10,053 shares of the oil and gas company’s stock valued at $203,000 after purchasing an additional 4,653 shares during the period. Madden Advisory Services Inc. acquired a new stake in Patterson-UTI Energy in the second quarter valued at $236,000. Gluskin Sheff & Assoc Inc. increased its holdings in Patterson-UTI Energy by 7.1% in the second quarter. Gluskin Sheff & Assoc Inc. now owns 11,740 shares of the oil and gas company’s stock valued at $237,000 after purchasing an additional 780 shares during the period. Finally, Pacad Investment Ltd. acquired a new stake in Patterson-UTI Energy in the second quarter valued at $246,000. Institutional investors own 98.70% of the company’s stock.
Patterson-UTI Energy Company Profile
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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