Cactus (NYSE:WHD) Stock Rating Lowered by Wall Street Zen

Key Points

• Cactus (NYSE:WHD) has been downgraded from a "hold" rating to a "sell" rating by Wall Street Zen, indicating a more pessimistic outlook from analysts.
• Several other analysts have adjusted their target prices for Cactus, with JPMorgan lowering it from $52.00 to $50.00, reflecting a declining sentiment towards the company's stock.
• Cactus reported earnings of $0.66 per share, missing estimates and showing a 5.8% decline in revenue compared to the same quarter last year.

Wall Street Zen lowered shares of Cactus (NYSE:WHD - Free Report) from a hold rating to a sell rating in a research report released on Saturday morning.

A number of other equities analysts have also recently commented on WHD. Barclays reaffirmed an "overweight" rating and set a $52.00 price objective (down from $53.00) on shares of Cactus in a research report on Monday, August 4th. JPMorgan Chase & Co. reduced 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. Finally, Stifel Nicolaus reduced their target price on shares of Cactus from $57.00 to $53.00 and set a "buy" rating for the company in a research report on Friday, August 1st. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, Cactus currently has a consensus rating of "Hold" and an average price target of $50.75.

Cactus Stock Performance

WHD stock traded down $0.3020 during midday trading on Friday, reaching $38.9880. 647,184 shares of the company were exchanged, compared to its average volume of 765,537. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.85 and a quick ratio of 3.48. The business has a 50-day moving average price of $43.49 and a two-hundred day moving average price of $45.04. Cactus has a one year low of $33.80 and a one year high of $70.01. The firm has a market capitalization of $3.11 billion, a price-to-earnings ratio of 14.71, a price-to-earnings-growth ratio of 3.70 and a beta of 1.48.

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

Cactus Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Friday, August 29th will be paid a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, August 29th. This is a positive change from Cactus's previous quarterly dividend of $0.13. This represents a $0.56 annualized dividend and a yield of 1.4%. Cactus's payout ratio is presently 19.62%.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of WHD. Advisors Asset Management Inc. grew 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 worth $47,000 after purchasing an additional 543 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S bought a new stake in shares of Cactus during the first quarter worth about $57,000. Financial Harvest LLC bought a new stake in shares of Cactus during the first quarter worth about $130,000. CWM LLC grew its holdings in shares of Cactus by 131.7% during the second quarter. CWM LLC now owns 2,966 shares of the company's stock worth $130,000 after purchasing an additional 1,686 shares during the last quarter. Finally, KBC Group NV grew its holdings in shares of Cactus by 11.9% during the first 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 last quarter. Institutional investors and hedge funds 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.