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. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 25%.
The Last 12 Months Of Insider Transactions At Patterson-UTI Energy
In fact, the recent purchase by Lead Director Curtis Huff was not their only acquisition of Patterson-UTI Energy shares this year. They previously made an even bigger purchase of US$202k worth of shares at a price of US$8.08 per share. 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. In our view, the price an insider pays for shares is very important. 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 shares in the last twelve months.
Curtis Huff purchased 65.00k shares over the year. The average price per share was US$4.56. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Patterson-UTI Energy is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Patterson-UTI Energy Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Patterson-UTI Energy insiders own 2.0% of the company, worth about US$8.1m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Do The Patterson-UTI Energy Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Patterson-UTI Energy insiders are expecting a bright future. 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. To that end, you should learn about the 3 warning signs we've spotted with Patterson-UTI Energy (including 1 which shouldn't be ignored).
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.
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