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

Key Points

• Cactus, Inc. has raised its quarterly dividend to $0.14 per share, reflecting a 7.7% increase from the previous dividend of $0.13.
• The company reported a net margin of 16.78% and a return on equity of 18.99%, despite a revenue decline of 5.8% year-over-year.
• Analysts have lowered their price targets for Cactus, with Stifel Nicolaus adjusting their goal from $61.00 to $57.00 and maintaining a "buy" rating.

Cactus, Inc. (NYSE:WHD - Get Free Report) declared a quarterly dividend on Wednesday, July 30th, RTT News reports. Investors of record on Friday, August 29th will be given a dividend of 0.14 per share on Thursday, September 18th. This represents a c) annualized dividend and a yield of 1.4%. The ex-dividend date of this dividend is Friday, August 29th. This is a 7.7% increase from Cactus's previous quarterly dividend of $0.13.

Cactus has a dividend payout ratio of 17.9% meaning its dividend is sufficiently covered by earnings. Analysts expect Cactus to earn $3.22 per share next year, which means the company should continue to be able to cover its $0.52 annual dividend with an expected future payout ratio of 16.1%.

Cactus Trading Down 6.2%

WHD traded down $2.61 during midday trading on Friday, reaching $39.70. 1,222,798 shares of the company were exchanged, compared to its average volume of 547,781. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.47 and a current ratio of 4.85. Cactus has a one year low of $33.80 and a one year high of $70.01. The stock has a market capitalization of $3.17 billion, a P/E ratio of 14.98, a PEG ratio of 3.49 and a beta of 1.48. The stock's 50-day simple moving average is $44.61 and its 200 day simple moving average is $47.00.

Cactus (NYSE:WHD - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $0.66 EPS for the quarter, missing analysts' consensus estimates of $0.67 by ($0.01). The business had revenue of $273.58 million for the quarter, compared to analyst estimates of $280.28 million. Cactus had a return on equity of 17.34% and a net margin of 16.19%. The company's revenue for the quarter was down 5.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.81 EPS. As a group, analysts forecast that Cactus will post 3.08 earnings per share for the current fiscal year.

Institutional Trading of Cactus

Several institutional investors have recently added to or reduced their stakes in the company. Principal Financial Group Inc. lifted its position in shares of Cactus by 2.3% during the 1st quarter. Principal Financial Group Inc. now owns 365,477 shares of the company's stock valued at $16,750,000 after acquiring an additional 8,164 shares during the period. KBC Group NV increased its holdings in Cactus by 11.9% in the 1st quarter. KBC Group NV now owns 3,373 shares of the company's stock worth $155,000 after purchasing an additional 360 shares in the last quarter. SG Americas Securities LLC increased its holdings in Cactus by 535.8% in the 1st quarter. SG Americas Securities LLC now owns 14,413 shares of the company's stock worth $661,000 after purchasing an additional 12,146 shares in the last quarter. Teacher Retirement System of Texas acquired a new position in Cactus in the 1st quarter worth about $447,000. Finally, Kingsview Wealth Management LLC acquired a new position in Cactus in the 1st quarter worth about $2,586,000. 85.11% of the stock is currently owned by institutional investors.

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.