why Patterson-UTI Energy Inc. [PTEN] is a Good Choice for Investors After New Price Target of $3.10

Patterson-UTI Energy Inc. [NASDAQ: PTEN] loss -1.90% or -0.07 points to close at $3.88 with a heavy trading volume of 6567457 shares. The company report on July 23, 2020 that Patterson-UTI Energy Reports Financial Results for the Three and Six Months Ended June 30, 2020.

PATTERSON-UTI ENERGY, INC. (NASDAQ: PTEN) today reported financial results for the three and six months ended June 30, 2020 . The Company reported a net loss of $150 million , or $0.81 per share, for the second quarter of 2020, compared to a net loss of $49.4 million , or $0.24 per share, for the second quarter of 2019. Excluding items discussed below, the net loss for the second quarter would have been $105 million , or $0.56 per share. Revenues for the second quarter of 2020 were $250 million , compared to $676 million for the second quarter of 2019.

For the six months ended June 30, 2020 , the Company reported a net loss of $585 million , or $3.10 per share, compared to a net loss of $78.1 million , or $0.37 per share, for the six months ended June 30 , 2019. Revenues for the six months ended June 30, 2020 were $696 million , compared to $1.4 billion for the same period in 2019.

It opened the trading session at $3.90, the shares rose to $3.95 and dropped to $3.7511, the range by which the price of stock traded the whole day. The daily chart for PTEN points out that the company has recorded -51.20% loss over the past six months. However, it is still -140.99% lower than its most recent low trading price.

If we look at the average trading volume of 7.58M shares, PTEN reached to a volume of 6567457 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Patterson-UTI Energy Inc. [PTEN]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PTEN shares is $3.10 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PTEN stock is a recommendation set at 3.10. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Scotiabank have made an estimate for Patterson-UTI Energy Inc. shares, keeping their opinion on the stock as Sector Underperform, with their previous recommendation back on July 16, 2020. The new note on the price target was released on April 27, 2020, representing the official price target for Patterson-UTI Energy Inc. stock. Previously, the target price had yet another raise to $3, while Cowen analysts kept a Market Perform rating on PTEN stock.

The Average True Range (ATR) for Patterson-UTI Energy Inc. is set at 0.31, with the Price to Sales ratio for PTEN stock in the period of the last 12 months amounting to 0.41. The Price to Book ratio for the last quarter was 0.32, with the Price to Cash per share for the same quarter was set at 1.29. Price to Free Cash Flow for PTEN in the course of the last twelve months was 2.75 with Quick ratio for the last quarter at 1.80.

Trading performance analysis for PTEN stock

Patterson-UTI Energy Inc. [PTEN] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.27. With this latest performance, PTEN shares gained by 19.05% in over the last four-week period, additionally sinking by -51.20% over the last 6 months – not to mention a drop of -62.85% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PTEN stock in for the last two-week period is set at 51.05, with the RSI for the last a single of trading hit 52.31, and the three-weeks RSI is set at 50.91 for Patterson-UTI Energy Inc. [PTEN]. The present Moving Average for the last 50 days of trading for this stock 4.03, while it was recorded at 4.01 for the last single week of trading, and 5.94 for the last 200 days.

Patterson-UTI Energy Inc. [PTEN]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Patterson-UTI Energy Inc. [PTEN] shares currently have an operating margin of -18.21 and a Gross Margin at -12.42. Patterson-UTI Energy Inc.’s Net Margin is presently recorded at -17.23.

Return on Total Capital for PTEN is now -10.63, given the latest momentum, and Return on Invested Capital for the company is -10.07. Return on Equity for this stock declined to -13.43, with Return on Assets sitting at -8.28. When it comes to the capital structure of this company, Patterson-UTI Energy Inc. [PTEN] has a Total Debt to Total Equity ratio set at 35.40. Additionally, PTEN Total Debt to Total Capital is recorded at 26.15, with Total Debt to Total Assets ending up at 22.59. Long-Term Debt to Equity for the company is recorded at 35.05, with the Long-Term Debt to Total Capital now at 25.89.

Reflecting on the efficiency of the workforce at the company, Patterson-UTI Energy Inc. [PTEN] managed to generate an average of -$73,397 per employee. Receivables Turnover for the company is 5.44 with a Total Asset Turnover recorded at a value of 0.48.Patterson-UTI Energy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.80 and a Current Ratio set at 1.90.

Patterson-UTI Energy Inc. [PTEN]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Patterson-UTI Energy Inc. posted -0.27/share EPS, while the average EPS was predicted by analysts to be reported at -0.3/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 10.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PTEN.

An analysis of insider ownership at Patterson-UTI Energy Inc. [PTEN]

There are presently around $802 million, in the hands of institutional investors. The top three institutional holders of PTEN stocks are: BLACKROCK INC. with ownership of 20,870,896, which is approximately 5.917% of the company’s market cap and around 3.10% of the total institutional ownership; VANGUARD GROUP INC, holding 18,239,640 shares of the stock with an approximate value of $70.68 million in PTEN stocks shares; and DIMENSIONAL FUND ADVISORS LP, currently with $55.74 million in PTEN stock with ownership of nearly 4.905% of the company’s market capitalization.

Positions in Patterson-UTI Energy Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 137 institutional holders increased their position in Patterson-UTI Energy Inc. [NASDAQ:PTEN] by around 32,735,298 shares. Additionally, 136 investors decreased positions by around 23,966,427 shares, while 34 investors held positions by with 150,220,989 shares. The mentioned changes placed institutional holdings at 206,922,714 shares, according to the latest SEC report filing. PTEN stock had 39 new institutional investments in for a total of 5,788,062 shares, while 51 institutional investors sold positions of 7,614,175 shares during the same period.

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