Cactus (NYSE:WHD) Reaches New 1-Year High - Here's Why

Key Points

• Cactus shares reached a new 52-week high of $68 during intraday trading, despite later trading about 1.9% lower. Analysts maintain a “Moderate Buy” consensus, with an average price target of $65.20.
• The company posted quarterly EPS of $0.93, beating estimates of $0.64, while revenue rose 64.3% year over year to $449.53 million. Cactus also increased its quarterly dividend to $0.15 per share.
• Insiders sold 260,661 shares worth approximately $15.8 million over the past 90 days, including a 100,000-share sale by CEO Scott Bender under a pre-arranged trading plan.

Cactus, Inc. (NYSE:WHD - Get Free Report) reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $68.00 and last traded at $65.9110, with a volume of 861779 shares. The stock had previously closed at $67.21.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on WHD shares. Citigroup lifted their price objective on Cactus from $65.00 to $67.00 and gave the company a "buy" rating in a report on Thursday, June 18th. Weiss Ratings raised Cactus from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, June 11th. Stifel Nicolaus raised their price target on Cactus from $68.00 to $72.00 and gave the company a "buy" rating in a report on Friday, July 31st. Piper Sandler lifted their price target on Cactus from $72.00 to $73.00 and gave the company an "overweight" rating in a research note on Tuesday, July 14th. Finally, Barclays upped their price objective on Cactus from $70.00 to $74.00 and gave the stock an "overweight" rating in a report on Monday. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $65.20.

Cactus Trading Down 1.9%

The company has a quick ratio of 1.81, a current ratio of 2.59 and a debt-to-equity ratio of 0.01. The business's fifty day moving average is $55.75 and its 200 day moving average is $54.61. The stock has a market cap of $5.28 billion, a PE ratio of 56.33, a P/E/G ratio of 2.41 and a beta of 1.36.

Cactus (NYSE:WHD - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.93 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.64 by $0.29. Cactus had a net margin of 6.01% and a return on equity of 16.66%. The company had revenue of $449.53 million during the quarter, compared to analysts' expectations of $400.82 million. During the same period last year, the company posted $0.66 earnings per share. The firm's quarterly revenue was up 64.3% compared to the same quarter last year. As a group, analysts predict that Cactus, Inc. will post 3.07 earnings per share for the current year.

Cactus Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Monday, August 31st will be issued a $0.15 dividend. The ex-dividend date is Monday, August 31st. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.9%. This is an increase from Cactus's previous quarterly dividend of $0.14. Cactus's payout ratio is currently 47.86%.

Insider Transactions at Cactus

In related news, CEO Scott Bender sold 100,000 shares of Cactus stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $63.89, for a total transaction of $6,389,000.00. Following the completion of the transaction, the chief executive officer directly owned 120,527 shares of the company's stock, valued at approximately $7,700,470.03. The trade was a 45.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael Y. Mcgovern sold 12,000 shares of Cactus stock in a transaction on Tuesday, May 12th. The stock was sold at an average price of $56.57, for a total value of $678,840.00. Following the transaction, the director directly owned 15,990 shares of the company's stock, valued at approximately $904,554.30. This represents a 42.87% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 260,661 shares of company stock worth $15,827,218 over the last ninety days. 12.91% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Johnson Financial Group Inc. purchased a new stake in shares of Cactus in the 3rd quarter worth about $33,000. Aster Capital Management DIFC Ltd grew its stake in Cactus by 73.4% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 742 shares of the company's stock valued at $34,000 after acquiring an additional 314 shares during the last quarter. Advisors Asset Management Inc. increased its holdings in Cactus by 113.8% during the 1st 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 in the last quarter. Global Retirement Partners LLC increased its holdings in Cactus by 39,200.0% during the 4th quarter. Global Retirement Partners LLC now owns 1,179 shares of the company's stock valued at $54,000 after acquiring an additional 1,176 shares in the last quarter. Finally, Harbor Investment Advisory LLC acquired a new position in Cactus during the second quarter worth about $58,000. 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. 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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