Cactus, Inc. (NYSE:WHD) Plans Quarterly Dividend of $0.14

Key Points

• Cactus announced a quarterly dividend of $0.14 per share (annualized $0.56), with record date June 1 and payment on June 18, implying a yield of about 1.0%.
• The dividend appears well-covered and sustainable: Cactus has raised its payout for four consecutive years, has a low payout ratio (~19.2%), and analysts project earnings that should keep the payout ratio low (expected ~16.3% next year).
• Recent results beat expectations—$0.70 EPS vs $0.65 estimate and revenue up 38.5% year-over-year—and the stock trades around $56 with a consensus analyst view of a "Moderate Buy" and a $56.33 target (several firms set higher targets up to $73).

Cactus, Inc. (NYSE:WHD - Get Free Report) announced a quarterly dividend on Thursday, May 7th. Shareholders of record on Monday, June 1st will be given a dividend of 0.14 per share on Thursday, June 18th. This represents a c) dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Monday, June 1st.

Cactus has increased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend annually for the last 4 consecutive years. Cactus has a payout ratio of 19.2% meaning its dividend is sufficiently covered by earnings. Research analysts expect Cactus to earn $3.44 per share next year, which means the company should continue to be able to cover its $0.56 annual dividend with an expected future payout ratio of 16.3%.

Cactus Trading Up 3.0%

Shares of NYSE:WHD opened at $56.14 on Friday. The company has a 50 day moving average of $51.13 and a 200-day moving average of $49.15. The firm has a market cap of $4.48 billion, a P/E ratio of 23.39, a P/E/G ratio of 2.08 and a beta of 1.37. Cactus has a twelve month low of $33.20 and a twelve month high of $59.25. The company has a current ratio of 5.81, a quick ratio of 4.13 and a debt-to-equity ratio of 0.01.

Cactus (NYSE:WHD - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The company reported $0.70 earnings per share for the quarter, topping analysts' consensus estimates of $0.65 by $0.05. The company had revenue of $388.35 million during the quarter, compared to analyst estimates of $380.42 million. Cactus had a net margin of 15.39% and a return on equity of 15.18%. The business's revenue for the quarter was up 38.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.73 EPS. As a group, analysts anticipate that Cactus will post 2.84 earnings per share for the current fiscal year.

Analysts Set New Price Targets

WHD has been the subject of a number of research analyst reports. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Cactus in a research note on Friday, March 27th. Piper Sandler initiated coverage on shares of Cactus in a research note on Tuesday, February 24th. They issued an "overweight" rating and a $73.00 price target for the company. Zacks Research lowered shares of Cactus from a "strong-buy" rating to a "hold" rating in a research note on Monday, January 26th. Citigroup upped their price target on shares of Cactus from $55.00 to $63.00 and gave the stock a "buy" rating in a research note on Tuesday, March 3rd. Finally, Barclays increased their target price on shares of Cactus from $56.00 to $62.00 and gave the company an "overweight" rating in a research note on Monday, March 2nd. Four research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Cactus currently has an average rating of "Moderate Buy" and a consensus target price of $56.33.

Cactus Company Profile

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.

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