Yahoo Finance The Patterson-UTI Energy (NASDAQ:PTEN) Share Price Is Down 63% So Some Shareholders Are Wishing They Sold
Patterson-UTI Energy, Inc. (NASDAQ:PTEN) shareholders should be happy to see the share price up 27% in the last quarter. But that is small recompense for the exasperating returns over three years. Indeed, the share price is down a tragic 63% in the last three years. So it is really good to see an improvement. Perhaps the company has turned over a new leaf.
See our latest analysis for Patterson-UTI Energy
Patterson-UTI Energy wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over three years, Patterson-UTI Energy grew revenue at 38% per year. That is faster than most pre-profit companies. The share price has moved in quite the opposite direction, down 29% over that time, a bad result. It seems likely that the market is worried about the continual losses. But a share price drop of that magnitude could well signal that the market is overly negative on the stock.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling Patterson-UTI Energy stock, you should check out this free report showing analyst profit forecasts.
What about the Total Shareholder Return (TSR)?
We'd be remiss not to mention the difference between Patterson-UTI Energy's total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that Patterson-UTI Energy's TSR, which was a 62% drop over the last 3 years, was not as bad as the share price return.
A Different Perspective
While the broader market gained around 34% in the last year, Patterson-UTI Energy shareholders lost 2.0% (even including dividends) . However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. However, the loss over the last year isn't as bad as the 5.5% per annum loss investors have suffered over the last half decade. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Patterson-UTI Energy by clicking this link.
Patterson-UTI Energy is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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