The Benchmark Company has recently reduced Patterson-UTI Energy, Inc. (PTEN) stock to Hold rating, as announced on January 16, 2024, according to Finviz. Earlier, on December 19, 2023, Goldman had initiated the stock to Neutral, setting a price target of $12. Morgan Stanley also reduced rating with a price target of $17. Additionally, BofA Securities raised Buy rating on October 16, 2023, with a target price of $16. Citigroup analysts, in their report published on October 9, 2023, also raised Buy rating and set a price target of $18 for Patterson-UTI Energy, Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Patterson-UTI Energy, Inc. (PTEN) Stock Trading Recap
On Thursday, Patterson-UTI Energy, Inc. (PTEN) stock saw a decline, ending the day at $7.67 which represents a decrease of $-0.18 or -2.29% from the prior close of $7.85. The stock opened at $7.91 and touched a low of $7.64 during the day, reaching a high of $8.01. The volume of shares traded was 10.01 million exceeding the average volume of 7.57 million.
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PTEN Stock Performance and Moving Averages
In recent trading, Patterson-UTI Energy, Inc. (PTEN) stock price has shown some volatility, fluctuating -3.76% over the last five trades and -4.24% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -27.57%, and it has plunged by -20.68% in the previous three months. Currently, PTEN is trading at -4.58%, -6.92%, and -24.38% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, PTEN, a Energy sector stock, is trading -41.63% below its 52-week high but remains 3.02% above its 52-week low. The Average True Range (ATR) (14 days) of 0.32 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Patterson-UTI Energy, Inc.’s Profitability and Valuation Ratios
Patterson-UTI Energy, Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 2.79% and a profit margin of -14.73%, with a gross margin of -27.57%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Patterson-UTI Energy, Inc.’s market capitalization stands at $2.99 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 173.29. Additionally, the Price-to-Sales Ratio is 0.52, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.84, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 9.80% of Patterson-UTI Energy, Inc. (PTEN)’s shares, while financial institutions hold 94.58%.
Notable insider trades include Gillard Matthew, President-Completions at Patterson-UTI Energy, Inc. (PTEN), who sold 60000 shares on Jun 18 ’24, at $9.87 each, totaling $0.59 million. On May 20 ’24, Drummond Robert Wayne Jr, Director, sold 150000 shares for $11.55 each, amounting to $1.73 million. Additionally, on Feb 29 ’24, Drummond Robert Wayne Jr sold 187916 shares at $11.73 each, generating $2.20 million.
