Don't Ignore The Insider Selling In Patterson-UTI Energy

Some Patterson-UTI Energy, Inc. (NASDAQ:PTEN) shareholders may be a little concerned to see that the Independent Vice Chairman of the Board, Robert Drummond, recently sold a substantial US$2.0m worth of stock at a price of US$8.89 per share. That sale reduced their total holding by 10% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Patterson-UTI Energy

Patterson-UTI Energy Insider Transactions Over The Last Year

Notably, that recent sale by Independent Vice Chairman of the Board Robert Drummond was not the only time they sold Patterson-UTI Energy shares this year. Earlier in the year, they fetched US$11.76 per share in a -US$3.0m sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$8.86. So it may not tell us anything about how insiders feel about the current share price.

Patterson-UTI Energy insiders didn't buy any shares over the last year. 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!

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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 1.8% of Patterson-UTI Energy shares, worth about US$62m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Patterson-UTI Energy Insiders?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Patterson-UTI Energy. You'd be interested to know, that we found 2 warning signs for Patterson-UTI Energy and we suggest you have a look.

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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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.