Have Insiders Sold Patterson-UTI Energy Shares Recently?
Some Patterson-UTI Energy, Inc. (NASDAQ:PTEN) shareholders may be a little concerned to see that the President, William Hendricks, recently sold a substantial US$3.2m worth of stock at a price of US$12.93 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 9.8%.
The Last 12 Months Of Insider Transactions At Patterson-UTI Energy
Over the last year, we can see that the biggest insider sale was by the Independent Vice Chairman of the Board, Robert Drummond, for US$4.6m worth of shares, at about US$12.04 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$12.42. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 26% of Robert Drummond's stake.
In the last year Patterson-UTI Energy insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Patterson-UTI Energy
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Patterson-UTI Energy
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Patterson-UTI Energy insiders own about US$90m worth of shares. That equates to 1.9% of the company. 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 Does This Data Suggest About Patterson-UTI Energy Insiders?
Insiders sold Patterson-UTI Energy shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Patterson-UTI Energy and understanding them should be part of your investment process.
Of course Patterson-UTI Energy may not be the best stock to buy. So you may wish to see this free collection of high quality 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.