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Patterson-UTI Energy’s Stock Price Is Bearish

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Patterson-UTI Energy 

On November 13, 2017, Patterson-UTI Energy (PTEN) was trading at $20.58. It has fallen ~24% since the beginning of 2017. We’ll analyze Patterson-UTI Energy’s drivers in this series. Patterson-UTI Energy is an OFS (oilfield equipment and services) company with multiservices businesses.

Baker Hughes, a GE company (BHGE), is Patterson-UTI Energy’s OFS peer. It has fallen 30% YTD (year-to-date). The VanEck Vectors Oil Services ETF (OIH) has fallen 24% YTD. National Oilwell Varco (NOV) has fallen 12% since the beginning of the year. The S&P 500 Index (SPX-INDEX) has risen 15.5% YTD.

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Stock price movement 

Since November 2016, Patterson-UTI Energy’s stock price has risen briefly. It reached a one-year high in February 2017. Since then, its stock price has fallen. It hasn’t recovered fully yet, despite crude oil’s price rise since June 2017. Patterson-UTI Energy continued to report net losses in the past ten quarters. It has been operating cash flow negative in the past three quarters. It explains why the crude oil price has outperformed PTEN’s stock price in recent times. Read Has Your Energy Portfolio Captured Oil’s Gain? to learn more about energy prices.

Patterson-UTI Energy’s moving averages

On November 13, 2017, Patterson-UTI Energy’s stock price was trading at 5% premium to its 50-day moving average. However, it’s trading 4% below its 200-day moving average. Moving averages exhibit a smoother trend following the stock’s price movement.

Patterson-UTI Energy’s long-run moving average has been running above its stock price since mid-April 2017, which exhibits longer-term weakness in the stock price. However, Patterson-UTI Energy’s stock price moved above the short-run moving average in September 2017, which indicates a short-term tailwind to its stock price.

In this series

In this series, we’ll discuss industry indicators, Patterson-UTI Energy’s top-line and bottom-line growth, and its balance sheet. We’ll start with management’s comments on the outlook.

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