Cactus (NYSE:WHD) Sets New 12-Month High - Still a Buy?

Key Points

• Cactus shares reached a new 52-week high of $74.07, supported by favorable analyst actions. The stock has a “Moderate Buy” consensus rating, though its $65.20 average price target is below the current trading level.
• Cactus reported stronger-than-expected quarterly results, with EPS of $0.93 versus the $0.64 consensus and revenue of $449.53 million, up 64.3% year over year.
• The company increased its quarterly dividend to $0.15, but insiders sold $16.3 million of stock over the past 90 days, including substantial sales by the CEO and president.

Cactus, Inc. (NYSE:WHD - Get Free Report) shares hit a new 52-week high during trading on Wednesday . The company traded as high as $74.07 and last traded at $73.9060, with a volume of 50257 shares traded. The stock had previously closed at $73.13.

Analysts Set New Price Targets

WHD has been the topic of a number of recent research reports. Piper Sandler raised their target price on Cactus from $72.00 to $73.00 and gave the company an "overweight" rating in a research note on Tuesday, July 14th. Citigroup lifted their price objective on shares of Cactus from $65.00 to $67.00 and gave the company a "buy" rating in a research report on Thursday, June 18th. Barclays boosted their target price on shares of Cactus from $70.00 to $74.00 and gave the company an "overweight" rating in a research note on Monday, August 3rd. Wall Street Zen upgraded shares of Cactus from a "hold" rating to a "buy" rating in a research note on Saturday, August 8th. Finally, Stifel Nicolaus lifted 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. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $65.20.

Cactus Trading Up 1.0%

The business's 50 day moving average is $58.10 and its two-hundred day moving average is $55.69. 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 firm has a market capitalization of $5.92 billion, a P/E ratio of 63.08, a PEG ratio of 2.63 and a beta of 1.36.

Cactus (NYSE:WHD - Get Free Report) last announced 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. The firm had revenue of $449.53 million during the quarter, compared to analyst estimates of $400.82 million. Cactus had a net margin of 6.01% and a return on equity of 16.66%. Cactus's revenue was up 64.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.66 EPS. Analysts expect that Cactus, Inc. will post 3.07 EPS for the current year.

Cactus Increases Dividend

The business also recently announced 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. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date is Monday, August 31st. This is a positive change from Cactus's previous quarterly dividend of $0.14. Cactus's payout ratio is presently 47.86%.

Insider Buying and Selling

In other Cactus news, CEO Stephen Tadlock sold 38,455 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $63.80, for a total transaction of $2,453,429.00. Following the sale, the chief executive officer owned 43,178 shares in the company, valued at approximately $2,754,756.40. The trade was a 47.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, President Joel Bender sold 86,700 shares of the firm's stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $57.62, for a total transaction of $4,995,654.00. Following the completion of the transaction, the president owned 41,519 shares of the company's stock, valued at approximately $2,392,324.78. The trade was a 67.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 263,455 shares of company stock valued at $16,261,764 over the last ninety days. 12.91% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Cactus

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio purchased a new stake in shares of Cactus in the second quarter valued at $35,000. Aster Capital Management DIFC Ltd grew its holdings in shares of Cactus by 73.4% during the fourth quarter. Aster Capital Management DIFC Ltd now owns 742 shares of the company's stock valued at $34,000 after buying an additional 314 shares in the last quarter. Johnson Financial Group Inc. acquired a new position in Cactus during the third quarter valued at $33,000. Advisors Asset Management Inc. raised its position in 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. Finally, Harbor Investment Advisory LLC purchased a new stake in Cactus in the 2nd quarter worth about $58,000. 85.11% of the stock is currently owned by hedge funds and other institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source