Have Insiders Sold Patterson-UTI Energy Shares Recently?

We wouldn't blame Patterson-UTI Energy, Inc. (NASDAQ:PTEN) shareholders if they were a little worried about the fact that Robert Drummond, the Independent Vice Chairman of the Board recently netted about US$1.7m selling shares at an average price of US$11.55. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 6.3%.

See our latest analysis for Patterson-UTI Energy

Patterson-UTI Energy Insider Transactions Over The Last Year

In fact, the recent sale by Independent Vice Chairman of the Board Robert Drummond was not their only sale of Patterson-UTI Energy shares this year. Earlier in the year, they fetched US$11.76 per share in a -US$3.0m sale. That means that an insider was selling shares at around the current price of US$10.74. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last year Patterson-UTI Energy insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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).

Does Patterson-UTI Energy Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Patterson-UTI Energy insiders own about US$77m worth of shares. That equates to 1.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Patterson-UTI Energy Tell Us?

An insider sold Patterson-UTI Energy shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. 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. Case in point: We've spotted 5 warning signs for Patterson-UTI Energy you should be aware of, and 1 of these is a bit unpleasant.

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.