The Case for and Against Patterson-UTI Energy, Inc. (PTEN)

Patterson-UTI Energy, Inc. (PTEN) is an interesting player in the Basic Materials space, with a focus on Oil & Gas Drilling & Exploration. The stock has been active on the tape, currently trading at $27.06, down from yesterday’s close by -2.17%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Patterson-UTI Energy, Inc. (PTEN) currently trades with a market capitalization of $4.56 Billion. That value represents a market adjusting for revenues that have been falling by -27.08 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For PTEN, the company currently has $35.15 Million of cash on the books, which is offset by $- current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $185.23 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $-0.45 on a per share basis this quarter. Perhaps, that suggests something about why 2.74% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Patterson-UTI Energy, Inc. recorded a 52-week high of $29.76. It is now trading 2.7% off that level. The stock is trading $27.66 its 50-day moving average by 0.6%. The stock carved out a 52-week low down at $13.81.

In recent action, Patterson-UTI Energy, Inc. (PTEN) has made a move of +0.22% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 23.12, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 14.76% with $163.07 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of PTEN.

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