Should I Buy PTEN? PTEN 2026 Analysis

Should You Buy Patterson-UTI Energy Inc (PTEN) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

7.330

1 Day change

-1.48%

52 Week Range

9.210

Analysis Updated At

2026/01/26

Patterson-UTI Energy Inc (PTEN) is not a strong buy for a beginner long-term investor at this moment. The company's weak financial performance, lack of recent positive news, and mixed analyst ratings do not support a compelling investment case. While hedge funds are buying, insider selling and a cautious outlook on the energy services sector add to the uncertainty. For a long-term strategy, it may be better to wait for clearer signs of financial recovery or stronger growth prospects.

Technical Analysis

The technical indicators show a mixed picture. The MACD is positive and contracting, suggesting some bullish momentum. The RSI is neutral at 68.216, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key resistance levels are at 7.561 and 7.802, with support at 6.782 and 6.541. However, the pre-market price change of 0.27% is minimal, indicating no strong immediate trend.

Options Data

Bullish

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

The low Option Volume Put-Call Ratio of 0.08 indicates a strong preference for calls over puts, suggesting bullish sentiment among options traders. However, the Open Interest Put-Call Ratio of 0.74 shows a more balanced long-term sentiment.

Technical Summary

Sell

Buy

Positive Catalysts

Hedge funds have increased their buying activity by 186.35% over the last quarter, indicating institutional interest. The stock has a 60% chance to gain 5.13% in the next week based on historical candlestick patterns.

Neutral/Negative Catalysts

Insiders are selling heavily, with a 1148.08% increase in selling activity over the last month. The energy services sector faces headwinds due to constrained upstream spending and a challenging macro environment. No recent positive news or events have been reported.

Financial Performance

The company's Q3 2025 financials show significant declines: revenue dropped by 13.36% YoY to $1.18 billion, net income plummeted by 96.28% YoY to -$36.4 million, EPS fell by 96% YoY to -0.1, and gross margin dropped by 322.69% YoY to 4.81. These metrics highlight a weak financial position and declining profitability.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have mixed views. Morgan Stanley recently raised its price target to $7 from $6.50 but maintained an Equal Weight rating, reflecting a neutral stance. JPMorgan downgraded the stock to Underweight with a price target of $6, citing sector headwinds and a challenging macro environment. Overall, analysts appear cautious about the stock's prospects.

9 Analyst Rating

Wall Street analysts forecast PTEN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for PTEN is 7.22 USD with a low forecast of 6 USD and a high forecast of 9 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

4 Buy

4 Hold

1 Sell

Moderate Buy

Current: 7.440

Low

Averages

7.22

High

Current: 7.440

Low

Averages

7.22

High

Morgan Stanley

Equal Weight

maintain

AI Analysis

2026-01-21

Reason

Morgan Stanley

Price Target

AI Analysis

2026-01-21

maintain

Equal Weight

Reason

Morgan Stanley raised the firm's price target on Patterson-UTI to $7 from $6.50 and keeps an Equal Weight rating on the shares. Heading into Q4 results, the firm's forecasts are roughly in-line with consensus for its energy services and equipment coverage overall on Q4 and 2026 EBITDA estimates, the analyst tells investors in a preview for the group.

Morgan Stanley

Equal Weight

initiated

2025-12-15

Reason

Morgan Stanley

Price Target

2025-12-15

initiated

Equal Weight

Reason

Morgan Stanley assumed coverage of Patterson-UTI with an Equal Weight rating and a price target of $6.50, up from $6. Energy Services stocks have rallied off the lows, pushing valuations higher, but against an uncertain oil backdrop the firm expects shorter cycle North American onshore spending to remain constrained and views it as "too early to step in," the analyst tells investors while assuming coverage of North America Energy Services & Equipment.

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PTEN Should I Buy

PTEN Should I Buy

Should You Buy Patterson-UTI Energy Inc (PTEN) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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