Are Market Conditions Favorable for Patterson-UTI Energy (PTEN)?

Bernzott Capital Advisors, an investment management firm, published its “US Small Cap Value Fund” first-quarter 2023 investor letter, a copy of which can be downloaded here. In the first quarter, the fund was flat on a net basis (-0.06%) compared to R2000V’s decline of -0.7% and R2500V’s rise of +1.4%. Financials was the leading contributor towards the fund’s relative performance in the quarter with positive stock selection while Health Care and Information Technology detracted from the performance.  In addition, please check the fund’s top five holdings to know its best picks in 2023.

Bernzott Capital Advisors US Small Cap Value Fund highlighted stocks like Patterson-UTI Energy, Inc. (NASDAQ:PTEN) in the first quarter 2023 investor letter. Headquartered in Houston, Texas, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) provides drilling services to the energy industry. On April 24, 2023, Patterson-UTI Energy, Inc. (NASDAQ:PTEN) stock closed at $12.47 per share. One-month return of Patterson-UTI Energy, Inc. (NASDAQ:PTEN) was 5.59%, and its shares lost 21.57% of their value over the last 52 weeks. Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has a market capitalization of $2.597 billion.

Bernzott Capital Advisors US Small Cap Value made the following comment about Patterson-UTI Energy, Inc. (NASDAQ:PTEN) in its Q1 2023 investor letter:

Patterson-UTI Energy, Inc. (NASDAQ:PTEN): PTEN is a leading supplier of contract land drilling and pressure pumping services primarily in the United States. Their portfolio of high-spec rigs should garner superior day rates driving robust return of capital in the form of dividends and share repurchases. The disciplined nature of capital deployment overall in the industry should keep market conditions very favorable for the foreseeable future.”

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Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Patterson-UTI Energy, Inc. (NASDAQ:PTEN) at the end of the fourth quarter which was 28 in the previous quarter.

We discussed Patterson-UTI Energy, Inc. (NASDAQ:PTEN) in another article and shared the list of most promising energy stocks according to analysts. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.