Cactus (NYSE:WHD) Given New $74.00 Price Target at Citigroup

Key Points

• Citigroup raised Cactus’s price target from $73 to $74 while maintaining a “neutral” rating, implying approximately 18.9% upside from the prior close.
• Analyst sentiment remains generally positive, with Cactus receiving three Buy and three Hold ratings; the consensus rating is “Moderate Buy” with a $74.75 average price target.
• Cactus exceeded quarterly EPS expectations, reporting $0.96 versus the $0.77 consensus estimate, although revenue of $430.89 million fell short of estimates. Insiders have sold 225,000 shares worth roughly $14.9 million over the past 90 days.

Cactus (NYSE:WHD - Get Free Report) had its target price lifted by analysts at Citigroup from $73.00 to $74.00 in a research note issued to investors on Tuesday, Benzinga reports. The brokerage presently has a "neutral" rating on the stock. Citigroup's price objective suggests a potential upside of 18.94% from the stock's previous close.

A number of other analysts also recently issued reports on WHD. Barclays increased their price target on shares of Cactus from $74.00 to $75.00 and gave the stock an "overweight" rating in a report on Thursday, October 15th. Wall Street Zen lowered shares of Cactus from a "buy" rating to a "hold" rating in a research note on Saturday. Piper Sandler raised their target price on Cactus from $75.00 to $78.00 and gave the company an "overweight" rating in a research report on Tuesday. Stifel Nicolaus lifted their price target on Cactus from $68.00 to $72.00 and gave the company a "buy" rating in a research note on Friday, July 31st. Finally, Weiss Ratings reaffirmed a "hold (c)" rating on shares of Cactus in a report on Tuesday, September 8th. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $74.75.

Cactus Stock Performance

WHD stock traded down $0.01 during trading on Tuesday, hitting $62.21. 112,271 shares of the company traded hands, compared to its average volume of 851,126. The stock's 50-day simple moving average is $65.75 and its 200 day simple moving average is $58.39. The company has a debt-to-equity ratio of 0.01, a current ratio of 2.59 and a quick ratio of 1.81. The company has a market cap of $4.99 billion, a PE ratio of 43.17, a P/E/G ratio of 1.71 and a beta of 1.42. Cactus has a 1 year low of $39.16 and a 1 year high of $74.07.

Cactus (NYSE:WHD - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The company reported $0.96 EPS for the quarter, topping the consensus estimate of $0.77 by $0.19. The business had revenue of $430.89 million for the quarter, compared to analyst estimates of $437.94 million. Cactus had a return on equity of 18.24% and a net margin of 6.69%. The business's quarterly revenue was up 63.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.67 EPS. On average, equities analysts expect that Cactus will post 3.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Scott Bender sold 100,000 shares of the business's stock in a transaction dated Thursday, October 1st. The shares were sold at an average price of $61.97, for a total transaction of $6,197,000.00. Following the transaction, the chief executive officer directly owned 120,527 shares in the company, valued at approximately $7,469,058.19. The trade was a 45.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Joel Bender sold 100,000 shares of the company's stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $70.37, for a total value of $7,037,000.00. Following the completion of the sale, the president owned 41,519 shares of the company's stock, valued at $2,921,692.03. This trade represents a 70.66% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 225,000 shares of company stock valued at $14,925,250 in the last 90 days. 12.91% of the stock is owned by insiders.

Institutional Trading of Cactus

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Squarepoint Ops LLC increased its holdings in Cactus by 104.5% in the 2nd quarter. Squarepoint Ops LLC now owns 369,645 shares of the company's stock valued at $18,937,000 after purchasing an additional 188,864 shares during the last quarter. Energy Income Partners LLC lifted its stake in Cactus by 48.4% during the first quarter. Energy Income Partners LLC now owns 300,759 shares of the company's stock worth $14,247,000 after purchasing an additional 98,124 shares in the last quarter. Morningstar Investment Management LLC purchased a new position in shares of Cactus during the first quarter worth $949,000. Jennison Associates LLC boosted its position in shares of Cactus by 202.3% during the first quarter. Jennison Associates LLC now owns 1,713,701 shares of the company's stock worth $81,178,000 after buying an additional 1,146,766 shares during the period. Finally, Bessemer Group Inc. grew its stake in shares of Cactus by 17.4% in the first quarter. Bessemer Group Inc. now owns 559,901 shares of the company's stock valued at $26,523,000 after buying an additional 83,080 shares in the last quarter. 85.11% of the stock is owned by institutional investors and hedge funds.

About Cactus

Cactus, Inc NYSE: WHD designs, manufactures, sells and rents wellhead and pressure-control equipment used in onshore oil and gas drilling and production. Its products are designed to help operators manage pressure and control access to wells during drilling, completion and production activities.

The company's offerings include wellhead systems, frac stacks, zipper manifolds and other pressure-control equipment. Cactus also provides field services, including equipment installation, maintenance and support, as well as rental services for selected products.

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