Citigroup Issues an Upgrade on Patterson-UTI (NASDAQ:PTEN) Shares. What’s Next?


Patterson-UTI (NASDAQ:PTEN) Stock Upgrade

In analysts report revealed to investors and clients today, Citigroup increased shares of Patterson-UTI (NASDAQ:PTEN) to a solid “Buy” rating from their previous “Neutral” rating.

From a total of 22 analysts covering Patterson-UTI Energy Inc (NASDAQ:PTEN) stock, 16 rate it a ”Buy”, 1 a “Sell”, and 11 a ”Hold”. This means that 57% of the ratings are positive. The highest target price is $24 while the lowest target price is $10. The mean of all analyst targets is $17.23 with a 9.41% above today’s ($14.87) stock price. Patterson-UTI Energy Inc was the topic of 19 analyst reports since July 28, 2015 according to the firm StockzIntelligence Inc. Guggenheim upgraded shares on November 30 to “Buy” rating. Credit Suisse maintained shares with “Neutral” rating and $13 target share price in a report from a September 4. Citigroup maintained PTEN stock in a recent report from October 5 with “Neutral” rating. Global Hunter Securities downgraded the rating on July 28. Global Hunter Securities has a “Accumulate” rating and a $18 price target on shares. Finally, BMO Capital Markets maintained the stock with “Outperform” rating in a report issued on a September 4.

Approximately 3.13 million shares of stock traded hands. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has declined 31.36% since May 8, 2015 and is downtrending. It has underperformed by 28.34% the S&P500.

The overall sentiment of institutions has decreased to 1.05 in Q2 2015. Its down 0.28, from 1.33 in 2015Q2. The ratio dropped, as 58 institutions have sold all the shares of Patterson-UTI Energy, Inc. that they owned while 77 funds have taken shares off the table. 34 funds have purchased shares for the first time while 108 added to their positions. These institutions now hold 153.19 million shares or 5.15% more than the 145.69 million shares they owned in 2015Q2.

The Fund Energy Opportunities Capital Management Llc currently is holding shares equating to 4.16% of its total portfolio in Patterson-UTI Energy, Inc. representing a total of 967,279 shares. Another fund,Elm Ridge Management Llc, is holding a total of 1.74 million shares equating to 3.32% of their holdings. Additionally, Kiltearn Partners Llp has a 5.24 million share stake in Patterson-UTI Energy, Inc. which represents 3.19% of their total portfolio. The Fund, Intrepid Capital Management Inc, based out of Florida, has also built up a stake in the stock, which represents a total of 1.79% of their total portfolio. Finally Ivory Investment Management. L.P., a fund which is based in the state of California reported a total holdings of 3.52 million shares.

Patterson-UTI Energy, Inc. owns and operates fleets of land drilling rigs and a fleet of pressure pumping equipment in the United States. The company has a market cap of $2.24 billion. The Firm operates in three divisions: Contract Drilling; Pressure Pumping, and Oil and Natural Gas. It currently has negative earnings. The Firm markets its contract drilling services to oil and natural gas operators in the continental United States, and western and northern Canada.

According to Zacks Investment Research, “Patterson is one of the leading providers of domestic land drilling services to major & independent oil & natural gas companies. The Company focuses its operations in Texas & southeast New Mexico. The Company currently has a drilling fleet of 114 drilling rigs, 108 of which are currently operable. The Company is also engaged in the development, exploration, acquisition & production of oil and natural gas; however, due to the substantial growth in the Company’s drilling contract operations, the oil & natural gas operations are no longer material to the Company’s overall operations.” Get a free copy of the Zacks research report on Patterson-UTI Energy, Inc. (PTEN).