Whilst it may not be a huge deal, we thought it was good to see that the Patterson-UTI Energy, Inc. (NASDAQ:PTEN) Lead Director, Curtis Huff, recently bought US$94k worth of stock, for US$2.36 per share. That purchase might not be huge but it did increase their holding by 25%.
The Last 12 Months Of Insider Transactions At Patterson-UTI Energy
Notably, that recent purchase by Lead Director Curtis Huff was not the only time they bought Patterson-UTI Energy shares this year. Earlier in the year, they paid US$8.08 per share in a US$202k purchase. That means that even when the share price was higher than US$2.10 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Curtis Huff was the only individual insider to buy over the year.
Curtis Huff bought 65.00k shares over the last 12 months at an average price of US$4.56. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Patterson-UTI Energy Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data indicates that Patterson-UTI Energy insiders own about US$8.1m worth of shares (which is 2.0% of the company). We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Patterson-UTI Energy Insiders?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we’d like to see, the history of transactions imply that Patterson-UTI Energy insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Patterson-UTI Energy. To help with this, we’ve discovered 3 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Patterson-UTI Energy.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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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