Patterson-UTI Energy Insiders Sold US$4.1m Of Shares Suggesting Hesitancy

Patterson-UTI Energy, Inc. +0.29%

Patterson-UTI Energy, Inc.

PTEN

10.44

+0.29%

Many Patterson-UTI Energy, Inc. (NASDAQ:PTEN) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Patterson-UTI Energy

The Last 12 Months Of Insider Transactions At Patterson-UTI Energy

In the last twelve months, the biggest single sale by an insider was when the Director, Robert Drummond, sold US$3.0m worth of shares at a price of US$11.76 per share. That means that even when the share price was slightly below the current price of US$11.94, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 9.6% of Robert Drummond's stake.

Insiders in Patterson-UTI Energy didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:PTEN Insider Trading Volume March 30th 2024

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Patterson-UTI Energy Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at Patterson-UTI Energy. In total, Director Robert Drummond dumped US$3.0m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Patterson-UTI Energy Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Patterson-UTI Energy insiders own 1.6% of the company, worth about US$80m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Patterson-UTI Energy Insider Transactions Indicate?

An insider hasn't bought Patterson-UTI Energy stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Patterson-UTI Energy makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Patterson-UTI Energy. To that end, you should learn about the 4 warning signs we've spotted with Patterson-UTI Energy (including 1 which is concerning).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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