Patterson-UTI Energy, Inc. (PTEN) Maybe More Attractive Than It Looks

Considering all key technical indicators, a 80% Buy signal has occurred for Patterson-UTI Energy, Inc. (NASDAQ:PTEN). The stock is also flashing a Buy from the Barchart TrendSpotter trading system. Traders hoping to speculate on the PTEN’s short-term trajectory should know that short terms indicators for the stock averaged 80% Buy with an average daily trading volume over the past 20 days at 3315130 shares. PTEN stock has overall a 1% Buy signal considering medium term indicators and the 50-day average daily volume remained almost 3874582 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was shares, is 33% Buy on the basis of long term indicators.

The share price is currently staying around the first support level of $13.94. Below this, the next support is placed in the zone of $13.79. Till the time, the PTEN stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 59.16 on daily chart, which may remain a cause for concern. If the price breaks below $13.79 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $14.26 mark may result into a pull-back move towards $14.43 level.

Patterson-UTI Energy, Inc. (PTEN) is projected to climb by 23.72 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $28-month high price target. This represents a whopping 98.86 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $17, which represents a return potential of 20.74 percent when compared to the closing price of the stock of $14.08 on Thursday, March 14. The lowest price target for the stock is $12 — slightly more than -14.77 percent from PTEN’s current share price.

Here’s a rundown of insider trading activity for sense of Patterson-UTI Energy, Inc. (NASDAQ:PTEN).

PTEN shares accumulated 0.16 points or 1.15 percent on Thursday to $14.08 with a light trade volume of 2.586 million shares. After opening the session at $13.97, the shares went as high as $14.29 and as low as $13.97, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.05 billion and now has 216.67 million shares outstanding. Patterson-UTI Energy, Inc. (PTEN) stock has gained 4.53 percent of market value in 21 trading days.

Analysts at Goldman, assumed coverage of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) with Neutral recommendation, according to their opinion released on March 11. JP Morgan analysts have downgraded their rating of PTEN stock from Overweight to Neutral in a separate flash note to investors on January 17. Analysts at Societe Generale issued an upgrade from Hold to Buy for the stock, in a research note that dated back to December 20.

PTEN stock has a trailing 3-year beta of 1.35, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.48 a share in the trailing twelve months. The stock’s value has surged 36.04 percent year to date (YTD) against a decline of -27.01 percent in 12 month’s time. The company’s shares still trade -41.31 percent away from its 1-year high of $23.99 and 48.37 percent up from 52-week low of $9.49. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Patterson-UTI Energy, Inc. (PTEN) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry PTEN operates in has an average P/E of 11.59. Its P/E ratio went as low as 14.98X and as high as 14.98 over the 5-year span. Further, it is sporting a 0.92 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.16. 27.8 percent is the gross profit margin for Patterson-UTI Energy, Inc. and operating margin sits at -9.7 percent. Along with this, the net profit margin is -9.7 percent.