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%.
The Last 12 Months Of Insider Transactions At Patterson-UTI Energy
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. So what is clear is that an insider saw fit to sell 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.
Insiders in Patterson-UTI Energy didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Patterson-UTI Energy better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does Patterson-UTI Energy Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. 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. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Patterson-UTI Energy Insiders?
An insider sold Patterson-UTI Energy shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 5 warning signs for Patterson-UTI Energy (1 doesn't sit too well with us!) that we believe deserve your full attention.
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.