Cactus (NYSE:WHD) Cut to "Strong Sell" at Zacks Research

Key Points

• Cactus Inc. (NYSE:WHD) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating, reflecting concerns about the company's financial performance.
• The company's recent quarterly earnings report showed EPS of $0.66, which missed the consensus estimate of $0.67, along with a revenue decline of 5.8% year-over-year.
• Despite the downgrade, some analysts maintain a "buy" rating, with Barclays setting a price objective at $52.00, down from $53.00.

Cactus (NYSE:WHD - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a note issued to investors on Monday, September 8th,Zacks.com reports. Zacks Research also issued estimates for Cactus' Q3 2025 earnings at $0.60 EPS, Q4 2025 earnings at $0.56 EPS, FY2025 earnings at $2.55 EPS, Q2 2026 earnings at $0.76 EPS, Q3 2026 earnings at $0.65 EPS, Q4 2026 earnings at $0.65 EPS, FY2026 earnings at $2.78 EPS, Q1 2027 earnings at $0.76 EPS, Q1 2027 earnings at $0.75 EPS and Q2 2027 earnings at $0.77 EPS.

Several other brokerages have also recently issued reports on WHD. Wall Street Zen upgraded shares of Cactus from a "sell" rating to a "hold" rating in a research report on Saturday, August 30th. Stifel Nicolaus cut their price objective on shares of Cactus from $57.00 to $53.00 and set a "buy" rating on the stock in a research report on Friday, August 1st. Barclays restated an "overweight" rating and set a $52.00 price objective (down previously from $53.00) on shares of Cactus in a report on Monday, August 4th. Finally, JPMorgan Chase & Co. dropped their target price on Cactus from $52.00 to $50.00 and set a "neutral" rating on the stock in a report on Wednesday, May 28th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $50.75.

Cactus Price Performance

Shares of WHD traded up $0.28 during midday trading on Monday, hitting $40.24. The company's stock had a trading volume of 336,074 shares, compared to its average volume of 711,807. Cactus has a one year low of $33.80 and a one year high of $70.01. The company has a quick ratio of 3.48, a current ratio of 4.85 and a debt-to-equity ratio of 0.01. The company's fifty day simple moving average is $42.29 and its two-hundred day simple moving average is $42.73. The stock has a market capitalization of $3.21 billion, a price-to-earnings ratio of 15.18, a price-to-earnings-growth ratio of 3.77 and a beta of 1.53.

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

Insider Activity at Cactus

In other news, EVP William D. Marsh sold 10,172 shares of the stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $41.32, for a total transaction of $420,307.04. Following the completion of the sale, the executive vice president directly owned 11,088 shares in the company, valued at approximately $458,156.16. This represents a 47.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 16.84% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Advisors Asset Management Inc. increased its stake in shares of Cactus by 113.8% during the first quarter. Advisors Asset Management Inc. now owns 1,020 shares of the company's stock valued at $47,000 after buying an additional 543 shares during the period. BI Asset Management Fondsmaeglerselskab A S bought a new stake in Cactus in the first quarter valued at $57,000. Financial Harvest LLC purchased a new position in Cactus during the 1st quarter valued at $130,000. CWM LLC raised its holdings in Cactus by 131.7% in the 2nd quarter. CWM LLC now owns 2,966 shares of the company's stock worth $130,000 after purchasing an additional 1,686 shares in the last quarter. Finally, KBC Group NV lifted its position in shares of 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 during the period. Institutional investors own 85.11% of the company's stock.

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.