Cactus (NYSE:WHD) Downgraded by Zacks Research to "Strong Sell"

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 equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Monday,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 and Q1 2027 earnings at $0.75 EPS.

A number of other research analysts have also weighed in on the company. Barclays reissued an "overweight" rating and issued a $52.00 price objective (down from $53.00) on shares of Cactus in a report on Monday, August 4th. Stifel Nicolaus decreased their price objective on shares of Cactus from $57.00 to $53.00 and set a "buy" rating for the company in a research note on Friday, August 1st. Wall Street Zen upgraded shares of Cactus from a "sell" rating to a "hold" rating in a research note on Saturday, August 30th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Cactus from $52.00 to $50.00 and set a "neutral" rating for the company in a research 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 assigned a Sell rating to the company. Based on data from MarketBeat, Cactus has a consensus rating of "Hold" and a consensus target price of $50.75.

Cactus Trading Up 0.2%

Shares of NYSE:WHD opened at $40.97 on Monday. The business's 50-day moving average is $42.54 and its 200 day moving average is $43.15. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.85 and a quick ratio of 3.48. Cactus has a 1 year low of $33.80 and a 1 year high of $70.01. The firm has a market capitalization of $3.27 billion, a P/E ratio of 15.39, a P/E/G ratio of 3.94 and a beta of 1.53.

Cactus (NYSE:WHD - Get Free Report) last posted its quarterly earnings data on Wednesday, July 30th. The company reported $0.66 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.67 by ($0.01). The company had revenue of $273.58 million for 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 business's revenue was down 5.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.81 EPS. On average, research analysts predict that Cactus will post 3.08 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, EVP William D. Marsh sold 10,172 shares of the company's stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $41.32, for a total transaction of $420,307.04. Following the completion of the transaction, the executive vice president directly owned 11,088 shares of the company's stock, valued at $458,156.16. This represents a 47.85% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Insiders own 16.84% of the company's stock.

Institutional Investors Weigh In On Cactus

Several institutional investors have recently bought and sold shares of WHD. Advisors Asset Management Inc. raised its holdings 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 acquiring an additional 543 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in shares of Cactus during the first quarter worth $57,000. Financial Harvest LLC acquired a new stake in shares of Cactus in the first quarter valued at about $130,000. CWM LLC lifted its stake in shares of Cactus by 131.7% in the second quarter. CWM LLC now owns 2,966 shares of the company's stock worth $130,000 after buying an additional 1,686 shares in the last quarter. Finally, KBC Group NV grew its stake in Cactus by 11.9% during the 1st quarter. KBC Group NV now owns 3,373 shares of the company's stock valued at $155,000 after acquiring an additional 360 shares in the last quarter. 85.11% of the stock is currently owned by institutional investors and hedge funds.

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.

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