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

Key Points

• Analyst consensus: Eight analysts give Cactus a "Moderate Buy" average rating (four buys, four holds) with a 12‑month average price target of $56.33 and notable targets of $73 (Piper Sandler) and $62 (Barclays).
• Insider selling: President Joel Bender sold 106,809 shares for about $5.33M on March 10, and insiders have sold 200,000 shares in the past three months, leaving insiders with 12.91% ownership.
• Recent results and metrics: Cactus beat estimates with Q reported EPS of $0.65 versus $0.58 and revenue of $261.2M versus $250.6M (revenue down 4% YoY); the company has a $4.32B market cap, P/E of 22.55, and a $0.14 quarterly dividend (1.0% yield).

Shares of Cactus, Inc. (NYSE:WHD - Get Free Report) have earned an average recommendation of "Moderate Buy" from the eight research firms that are currently covering the company, MarketBeat reports. Four equities research 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 analysts that have issued ratings on the stock in the last year is $56.3333.

Several research firms have commented on WHD. Wall Street Zen downgraded shares of Cactus from a "buy" rating to a "hold" rating in a research note on Saturday, March 21st. Piper Sandler began 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. Barclays boosted their price target on shares of Cactus from $56.00 to $62.00 and gave the stock an "overweight" rating in a research note on Monday, March 2nd. Weiss Ratings restated a "hold (c)" rating on shares of Cactus in a research note on Friday, March 27th. Finally, Zacks Research cut shares of Cactus from a "strong-buy" rating to a "hold" rating in a research report on Monday, January 26th.

Insider Activity

In other news, President Joel Bender sold 106,809 shares of Cactus stock in a transaction on Tuesday, March 10th. The shares were sold at an average price of $49.92, for a total transaction of $5,331,905.28. Following the completion of the sale, the president directly owned 27,793 shares of the company's stock, valued at approximately $1,387,426.56. The trade was a 79.35% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last three months, insiders have sold 200,000 shares of company stock worth $10,039,080. 12.91% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Cactus

Institutional investors have recently modified their holdings of the company. Vest Financial LLC lifted its position in shares of Cactus by 35.3% during the 3rd quarter. Vest Financial LLC now owns 107,899 shares of the company's stock worth $4,259,000 after purchasing an additional 28,139 shares during the last quarter. Hudson Edge Investment Partners Inc. lifted its position in shares of Cactus by 249.2% during the 3rd quarter. Hudson Edge Investment Partners Inc. now owns 28,388 shares of the company's stock worth $1,120,000 after purchasing an additional 20,258 shares during the last quarter. Campbell & CO Investment Adviser LLC purchased a new stake in shares of Cactus during the 3rd quarter worth $1,872,000. Sumitomo Mitsui Trust Group Inc. purchased a new stake in shares of Cactus during the 3rd quarter worth $525,000. Finally, Amova Asset Management Americas Inc. purchased a new stake in shares of Cactus during the 3rd quarter worth $525,000. 85.11% of the stock is owned by hedge funds and other institutional investors.

Cactus Stock Performance

NYSE:WHD opened at $54.12 on Thursday. The company has a fifty day simple moving average of $51.44 and a two-hundred day simple moving average of $47.79. The company has a market cap of $4.32 billion, a price-to-earnings ratio of 22.55, a price-to-earnings-growth ratio of 2.29 and a beta of 1.31. The company has a quick ratio of 4.13, a current ratio of 5.81 and a debt-to-equity ratio of 0.01. Cactus has a 52 week low of $33.20 and a 52 week high of $59.25.

Cactus (NYSE:WHD - Get Free Report) last posted its quarterly earnings results on Wednesday, February 25th. The company reported $0.65 EPS for the quarter, topping the consensus estimate of $0.58 by $0.07. The business had revenue of $261.20 million during the quarter, compared to the consensus estimate of $250.60 million. Cactus had a net margin of 15.39% and a return on equity of 15.18%. The company's quarterly revenue was down 4.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.71 earnings per share. As a group, equities analysts anticipate that Cactus will post 2.53 earnings per share for the current fiscal year.

Cactus Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, March 19th. Stockholders of record on Monday, March 2nd were given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend was Monday, March 2nd. Cactus's payout ratio is 23.33%.

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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