Cactus, Inc. (NYSE:WHD) Receives Consensus Rating of “Moderate Buy” from Brokerages

Shares of Cactus, Inc. (NYSE:WHD) have been given a consensus recommendation of “Moderate Buy” by the seven research firms that are covering the stock, MarketBeat.com reports. Three investment analysts have rated the stock with a hold recommendation and four have given a buy recommendation to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $64.40.

A number of research analysts have recently issued reports on the company. Weiss Ratings upgraded Cactus from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, June 11th. Barclays upped their price objective on Cactus from $62.00 to $70.00 and gave the stock an “overweight” rating in a research note on Monday, May 11th. Piper Sandler raised their price objective on Cactus from $72.00 to $73.00 and gave the company an “overweight” rating in a research report on Tuesday, July 14th. Citigroup raised their price objective on Cactus from $65.00 to $67.00 and gave the company a “buy” rating in a research report on Thursday, June 18th. Finally, Stifel Nicolaus lifted their target price on Cactus from $68.00 to $72.00 and gave the company a “buy” rating in a research note on Friday.

Insider Transactions at Cactus

In related news, Director Michael Y. Mcgovern sold 12,000 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $56.57, for a total transaction of $678,840.00. Following the completion of the sale, the director owned 15,990 shares of the company’s stock, valued at $904,554.30. This represents a 42.87% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Alan Semple sold 10,206 shares of the stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $56.62, for a total transaction of $577,863.72. Following the sale, the director directly owned 29,444 shares of the company’s stock, valued at $1,667,119.28. The trade was a 25.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 35,506 shares of company stock valued at $1,989,135 in the last 90 days. Insiders own 12.91% of the company’s stock.

Hedge Funds Weigh In On Cactus

Several institutional investors and hedge funds have recently bought and sold shares of WHD. Advisors Asset Management Inc. increased its position in shares of Cactus by 113.8% during the first quarter. Advisors Asset Management Inc. now owns 1,020 shares of the company’s stock worth $47,000 after purchasing an additional 543 shares in the last quarter. AQR Capital Management LLC boosted its position in shares of Cactus by 101.1% in the 1st quarter. AQR Capital Management LLC now owns 11,427 shares of the company’s stock worth $524,000 after purchasing an additional 5,745 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Cactus by 4.6% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,685 shares of the company’s stock worth $1,819,000 after purchasing an additional 1,733 shares in the last quarter. United Services Automobile Association purchased a new position in Cactus during the 1st quarter worth $203,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Cactus by 26.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 226,931 shares of the company’s stock worth $10,400,000 after buying an additional 46,835 shares during the last quarter. 85.11% of the stock is owned by hedge funds and other institutional investors.

Cactus Stock Performance

Shares of WHD stock opened at $65.04 on Friday. The firm has a market cap of $5.21 billion, a price-to-earnings ratio of 55.59, a PEG ratio of 2.34 and a beta of 1.38. Cactus has a 52-week low of $33.20 and a 52-week high of $65.19. The company has a quick ratio of 1.71, a current ratio of 2.59 and a debt-to-equity ratio of 0.01. The company’s 50 day moving average is $55.52 and its 200 day moving average is $54.31.

Cactus (NYSE:WHD) last issued its quarterly earnings data on Wednesday, July 29th. The company reported $0.93 EPS for the quarter, topping analysts’ consensus estimates of $0.64 by $0.29. The company had revenue of $449.53 million during the quarter, compared to the consensus estimate of $400.82 million. Cactus had a net margin of 6.01% and a return on equity of 16.66%. Cactus’s revenue for the quarter was up 64.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.66 earnings per share. On average, sell-side analysts anticipate that Cactus will post 2.92 EPS for the current fiscal year.

Cactus Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Monday, August 31st will be issued a $0.15 dividend. The ex-dividend date is Monday, August 31st. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.9%. This is an increase from Cactus’s previous quarterly dividend of $0.14. Cactus’s dividend payout ratio (DPR) is 47.86%.

Key Headlines Impacting Cactus

Here are the key news stories impacting Cactus this week:

• Positive Sentiment: Cactus reported adjusted earnings of $0.93 per share, well above the $0.64-$0.71 analyst estimates and up from $0.66 a year earlier. Revenue increased 64.3% year over year to $449.5 million, also surpassing expectations. Cactus Q2 earnings and revenue report
• Positive Sentiment: Management cited strong international demand and growth in Pressure Control and Spoolable Technologies, which helped expand earnings and backlog. The company expects Spoolable Technologies revenue to rise approximately 15%-20% in the third quarter. WHD Q2 earnings beat estimates
• Positive Sentiment: Cactus raised its quarterly dividend by 7.1%, from $0.14 to $0.15 per share, signaling confidence in cash generation and strengthening the income appeal of the stock. Cactus raises dividend after Q2 results
• Neutral Sentiment: Analyst sentiment remains generally favorable, with a consensus rating of “Moderate Buy” and recent price-target increases from Citigroup, Barclays, Stifel and Piper Sandler. However, the average target of $63.60 suggests limited upside after the recent rally.
• Negative Sentiment: Management expects Pressure Control revenue to decline about 10% in the third quarter, partially offsetting Spoolable Technologies growth and highlighting uneven performance between business segments. Cactus third-quarter segment outlook
• Negative Sentiment: CEO Scott Bender sold 13,300 shares for approximately $732,000, reducing his direct ownership by 9.4%. The transaction may create a modest sentiment overhang, although it does not change the company’s operating outlook. Cactus CEO insider sale

About Cactus

Cactus, Inc, together with its subsidiaries, designs, manufactures, sells, and leases pressure control and spoolable pipes in the United States, Australia, Canada, the Middle East, and internationally. It operates through two segments, Pressure Control and Spoolable Technologies. The Pressure Control segment designs, manufactures, sells, and rents a range of wellhead and pressure control equipment under the Cactus Wellhead brand name through service centers. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells.