Patterson-UTI Energy Recent Insider Activity

Disclosed on May 22, Wayne Robert Drummond Jr, Director at Patterson-UTI Energy PTEN, executed a substantial insider sell as per the latest SEC filing.

What Happened: Jr's decision to sell 150,000 shares of Patterson-UTI Energy was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,732,500.

At Wednesday morning, Patterson-UTI Energy shares are down by 1.13%, trading at $11.34.

Get to Know Patterson-UTI Energy Better

Patterson-UTI Energy is one of the largest land rig drilling contractors in the United States. Its 2023 merger with NexTier greatly expanded its pressure pumping operations, as well, and the firm now controls nearly 20% of the North American market for drilling and completions services. It also provides directional drilling services and tool rental services in most US onshore oil and gas basins.

Understanding the Numbers: Patterson-UTI Energy's Finances

Revenue Growth: Patterson-UTI Energy displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 90.75%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.

Exploring Profitability:

• Gross Margin: With a low gross margin of 10.48%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Patterson-UTI Energy's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.13.

Debt Management: Patterson-UTI Energy's debt-to-equity ratio is below the industry average at 0.28, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Overview:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.24, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.77 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Patterson-UTI Energy's EV/EBITDA ratio at 4.8 suggests potential undervaluation, falling below industry averages.

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

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The Importance of Insider Transactions

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Deep Dive into Insider Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Patterson-UTI Energy's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.