Cactus, Inc. (NYSE:WHD) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Cactus, Inc. (NYSE:WHD) has an average analyst rating of “Moderate Buy” from eight covering firms, with a consensus 12-month price target of $58.00.
• The company recently beat earnings expectations, reporting $0.70 EPS versus the $0.65 estimate and revenue of $388.35 million, up 38.5% year over year.
• Cactus also announced a quarterly dividend of $0.14 per share, while insider selling was notable, including share sales by two directors and 222,206 shares sold in the last quarter.

Cactus, Inc. (NYSE:WHD - Get Free Report) has earned an average recommendation of "Moderate Buy" from the eight ratings firms that are presently covering the firm, MarketBeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $58.00.

A number of brokerages have commented on WHD. Wall Street Zen cut shares of Cactus from a "buy" rating to a "hold" rating in a report on Saturday, March 21st. Barclays increased their price objective on shares of Cactus from $62.00 to $70.00 and gave the stock an "overweight" rating in a research note on Monday, May 11th. Piper Sandler began coverage on shares of Cactus in a research note on Tuesday, February 24th. They set an "overweight" rating and a $73.00 target price for the company. Citigroup lifted their price objective on shares of Cactus from $63.00 to $65.00 and gave the stock a "buy" rating in a research note on Monday, May 11th. Finally, Zacks Research lowered shares of Cactus from a "strong-buy" rating to a "hold" rating in a report on Monday, January 26th.

Cactus Trading Down 0.2%

Shares of NYSE WHD opened at $56.87 on Monday. The company has a market cap of $4.56 billion, a PE ratio of 53.65, a P/E/G ratio of 2.17 and a beta of 1.37. The firm's 50 day moving average price is $51.56 and its 200-day moving average price is $49.91. Cactus has a 52-week low of $33.20 and a 52-week high of $59.25. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.71 and a current ratio of 2.61.

Cactus (NYSE:WHD - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.70 earnings per share for the quarter, beating analysts' consensus estimates of $0.65 by $0.05. The company had revenue of $388.35 million for the quarter, compared to the consensus estimate of $380.42 million. Cactus had a net margin of 6.17% and a return on equity of 15.43%. The firm's revenue for the quarter was up 38.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.73 earnings per share. On average, equities research analysts expect that Cactus will post 2.84 EPS for the current fiscal year.

Cactus Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, June 18th. Stockholders of record on Monday, June 1st will be issued a $0.14 dividend. The ex-dividend date is Monday, June 1st. This represents a $0.56 annualized dividend and a dividend yield of 1.0%. Cactus's payout ratio is currently 52.83%.

Insider Activity

In other news, Director Alan Semple sold 10,206 shares of Cactus stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $56.62, for a total value of $577,863.72. Following the transaction, the director 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. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Michael Y. Mcgovern sold 12,000 shares of Cactus stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $56.57, for a total transaction of $678,840.00. Following the completion of the transaction, the director directly owned 15,990 shares in the company, valued at approximately $904,554.30. The trade was a 42.87% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 222,206 shares of company stock worth $11,295,784. 12.91% of the stock is currently owned by corporate insiders.

Institutional Trading of Cactus

Several large investors have recently bought and sold shares of the stock. Quantinno Capital Management LP grew its position in Cactus by 36.7% during the 1st quarter. Quantinno Capital Management LP now owns 8,251 shares of the company's stock worth $391,000 after purchasing an additional 2,216 shares during the last quarter. Dean Capital Management boosted its holdings in Cactus by 90.0% during the first quarter. Dean Capital Management now owns 81,280 shares of the company's stock worth $3,850,000 after buying an additional 38,502 shares in the last quarter. Gabelli Funds LLC boosted its holdings in Cactus by 2.0% during the first quarter. Gabelli Funds LLC now owns 74,099 shares of the company's stock worth $3,510,000 after buying an additional 1,472 shares in the last quarter. Gamco Investors INC. ET AL boosted its holdings in Cactus by 17.3% during the first quarter. Gamco Investors INC. ET AL now owns 10,430 shares of the company's stock worth $494,000 after buying an additional 1,538 shares in the last quarter. Finally, Morningstar Investment Management LLC purchased a new stake in Cactus during the first quarter worth $949,000. Hedge funds and other institutional investors own 85.11% of the company's stock.

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.

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