Patterson-UTI Energy Inc. (PTEN) stock down despite upgrade at Stephens

Patterson-UTI Energy Inc. (NASDAQ: PTEN) shares slid back in value Tuesday Dec 13 with lighter trade volume than normal after a number of analysts weighed in on the investing value of the stock with a upgraded rating.

Meanwhile, the Dow DJIA, +0.47% climbed 106 points, or 0.6%, to 19,905. If the Dow finishes higher, it will notch its seventh straight gain.

The S&P 500 index SPX, +0.56% gained 10.45 points, or 0.5%, to 2,267 and the tech-heavy Nasdaq Composite Index COMP, +1.02% added 48 points, or 0.9%, to 5,461.

Both the S&P 500 index SPX, +0.56% and Nasdaq Composite COMP, +1.02% ended lower on Monday, with investors appearing reluctant to push shares higher ahead of the Fed meeting

Analysts at Stephens upgraded shares of Patterson-UTI Energy Inc. (NASDAQ: PTEN) from Underweight to Equal Weight today. Stephens currently has a rating of Equal Weight on the stock. A number of other analysts have commented on the stock recently, and Patterson-UTI Energy Inc. has secured a consensus one-year price target of $24.98, lower than the opening price of $27.06. Patterson-UTI Energy Inc. stock has a 52-week high of $29.56. Usually, after analysts publish an upgrade report on a stock, they will subsequently issue sporadic updates, often followed by a price target change.

Patterson-UTI Energy Inc. (NASDAQ: PTEN) shares last traded at $26.90, which is a dip of $1.77 per share or -6.17% compared to the previous closing price. Opening at $27.06, they fluctuated from $26.75 and $27.97 throughout the day.

Patterson-UTI Energy Inc. (NASDAQ: PTEN) currently has a market cap of 3.94B.

Patterson-UTI Energy Inc. (NASDAQ: PTEN) Average Daily Trading Volume

2,459,332 shares traded hands yesterday, below the average, out of a total float 143,280,000. Look for trading volume to pick up in the coming days as momentum traders often use increases in trading volume to pinpoint heavy volume aggregation or circulation by institutional investors.

However, a single day of significant buy side trading is not enough to affirm a trend. As such, market traders will continue to watch for institutional sponsorship as a cue that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These professional investors have substantial teams of analysts researching thousands of stocks. Thus, watching their interests is a good way to ensure you are buying the right stocks.

Patterson-UTI Energy Inc. (NASDAQ: PTEN) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

By following the activity of these professional investors—and the moving averages they influence—it allows for traders to make more useful judgments on trades.

Trades for Patterson-UTI Energy Inc. (NASDAQ: PTEN) have ranged from $10.94 – 29.56, and the stock now has a 50-day MA of $24.36 and 200-day MA of $21.59. Today’s last price is 9.00%% under the 52 week high of $29.56.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors watch for companies that have increased their earnings by at least 25% over the past 3 years.

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