Patterson-UTI Energy Inc. (PTEN) shares are trading at lower $5.13 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $3.85.
To add more color to this target, the company’s high over the last year is $10.95 and the low is $1.61. Over the last 52 weeks, PTEN is down -47.44% while the S&P 500 is up 17.22%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, PTEN reported a profit of 114.57 million. Patterson-UTI Energy Inc. also saw revenues decrease to $207.14 million. In addition, PTEN has free cash flow of $148.24 million as of 09-2020. The company’s EBITDA came in at $42.98 million which compares well with its peers.
PTEN booked profit margins of -56.10%, its Return on Equity (ROE) is -32.80%, and its Return on Assets is -20.30%. All told, it is clear that, PTEN needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. PTEN has a short ratio of 5.51 and outstanding shares of 187.28M.
PTEN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.3 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -4.13. Patterson-UTI Energy Inc. PTEN also noted assets of $3.47 billion at the end of the last quarter. Investors should also keep an eye on sector updates as PTEN has historically followed its peers on positive news.
All told, Patterson-UTI Energy Inc. PTEN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PTEN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Patterson-UTI Energy Inc. PTEN is now commanding a market cap of 900.47M and a float of 181.92M. PTEN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of PTEN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in PTEN, either long or short, and we have not been compensated for this article.