Smart Money Is Fleeing Patterson-UTI Energy, Inc. (PTEN)

Seeing as Patterson-UTI Energy, Inc. (NASDAQ:PTEN) has witnessed a declination in interest from the aggregate hedge fund industry, we can see that there were a few hedgies that slashed their full holdings by the end of the third quarter. Interestingly, Brian Taylor’s Pine River Capital Management cut the biggest investment of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $15.7 million in stock, and Kyle Bass’ Hayman Advisors was right behind this move, as the fund cut about $13.1 million worth of shares. These transactions are interesting, as aggregate hedge fund interest fell by 10 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Patterson-UTI Energy, Inc. (NASDAQ:PTEN) but similarly valued. We will take a look at Sterling Bancorp (NYSE:STL), Diebold Incorporated (NYSE:DBD), Tootsie Roll Industries, Inc. (NYSE:TR), and Nimble Storage Inc (NYSE:NMBL). This group of stocks’ market values match Patterson-UTI Energy, Inc.’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
STL 21 245040 1
DBD 10 267619 -5
TR 9 79318 0
NMBL 18 151621 -1

As you can see these stocks had an average of 14.5 hedge funds with bullish positions and the average amount invested in these stocks was $186 million. That figure was $346 million in Patterson-UTI Energy, Inc.’s case. Sterling Bancorp (NYSE:STL) is the most popular stock in this table. On the other hand Tootsie Roll Industries, Inc. (NYSE:TR) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Patterson-UTI Energy, Inc. (NASDAQ:PTEN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and have more money invested in it, it may be a good idea to analyze it in detail and potentially include it in your portfolio, bearing in mind that a lot of top investors did flee the stock in Q3.