Recent insider trends for Patterson-UTI Energy, Inc. (NASDAQ:PTEN) have caught the attention of investors. Analysts study insider data to get a sense of sense of what key shareholders think about the outlook for a particular stock. In the case of PTEN, the data has some interesting implications for where the stock might be headed.
Institutions own 100.57% of Patterson-UTI Energy, Inc. (PTEN)’s shares. The total value of these holdings, in millions, is $4,578. Among active positions in the latest quarter, 193 holders increased their positions by a total of 57.09 million shares, 134 holders decreased the positions by a total of 22.45 million shares, and 38 holders held their positions. This works out to a net increase in ownership of 34.64 million shares, and suggests that institutions are feeling bullish about the stock.
Among new and sold out positions, 50 holders initiated new positions by a total of 17.03 million shares and 50 holders exited their positions by a total of 10.56 million shares. This nets out to an increase of 6.48 million shares and is a bullish sign for PTEN.
In the last three months, insiders executed a total of 1 trades. 1 were sells. Insider ownership decreased by a total of 5127 shares, which suggests that PTEN’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 11 buys and 7 sells, and ownership increased by a net of 818040 shares.
The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the number of a stock’s shares currently being shorted, captures what the market as a whole feels about a stock. Patterson-UTI Energy, Inc. (NASDAQ:PTEN)’s short interest is 16.6 million shares, or 11.55% of the float. This represents an increase of 1% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.
Ownership trends and trading patterns can be useful tools for predicting a stock’s performance, but it’s also important to consider the technicals in order to form a more comprehensive view. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that PTEN is a Weak buy, which implies that PTEN is expected to outperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is undervalued.