Patterson-UTI Energy Inc. (NASDAQ:PTEN) Undervalued? Fundamentals Hard To Beat?

Patterson-UTI Energy Inc. (NASDAQ:PTEN) shares fell to a low of $5.15 before closing at $5.61. Intraday shares traded counted 6.08 million, which was -86.53% lower than its 30-day average trading volume of 3.26M. PTEN’s previous close was $5.18 while the outstanding shares total 187.28M. The firm has a beta of 3.18. The stock’s Relative Strength Index (RSI) is 74.63, with weekly volatility at 8.61% and ATR at 0.38. The PTEN stock’s 52-week price range has touched low of $1.61 and a $10.95 high. The stock traded higher over the last trading session, gaining 8.30% on 12/10/20.

Investors have identified the Oil & Gas Drilling company Patterson-UTI Energy Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $984.72 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Patterson-UTI Energy Inc. (PTEN) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 532.11 million total, with 263.4 million as their total liabilities.

PTEN were able to record 148.24 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 129.56 million. In cash movements, the company had a total of 283.29 million as operating cash flow.

Potential earnings growth for Patterson-UTI Energy Inc. (PTEN)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, Patterson-UTI Energy Inc. recorded a total of 207.14 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -188.91% coming in sequential stages and their sales for the Q3 2020 quarter reducing by -20.87%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 321.71 million trying to sell their products during the last quarter, with the result yielding a gross income of -114.57 million. This allows shareholders to hold on to 187.28M with the recently reported earning now reading -0.60 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (-0.60 cents a share).

Having a look at the company’s valuation, the company is expected to record -2.27 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on PTEN sounds very interesting.

Is the stock of PTEN attractive?

In related news, Director, Judah Janeen S bought 25,000 shares of the company’s stock in a transaction that recorded on Mar 12. The purchase was performed at an average price of 2.12, for a total value of 53,000. As the purchase deal closes, the President & CEO, Hendricks William Andrew JR now bought 50,000 shares of the company’s stock, valued at 102,165. Also, Director, HUFF CURTIS W bought 70,000 shares of the company’s stock in a deal that was recorded on Mar 11. The shares were cost at an average price of 2.06 per share, with a total market value of 144,088. Following this completion of disposal, the Director, Conlon Michael W now holds 25,000 shares of the company’s stock, valued at 50,250. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.

4 out of 21 analysts covering the stock have rated it a Buy, while 11 have maintained a Hold recommendation on Patterson-UTI Energy Inc.. 4 analysts has assigned a Sell rating on the PTEN stock. The 12-month mean consensus price target for the company’s shares has been set at $3.85.

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