Cactus (NYSE:WHD) Stock Price Down 8.3% on Disappointing Earnings

Key Points

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Cactus, Inc. (NYSE:WHD - Get Free Report) shares traded down 8.3% during trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $43.05 and last traded at $42.91. 354,619 shares were traded during mid-day trading, a decline of 50% from the average session volume of 709,288 shares. The stock had previously closed at $46.80.

The company reported $0.66 EPS 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 analysts' expectations of $280.28 million. Cactus had a return on equity of 17.34% and a net margin of 16.19%. Cactus's revenue for the quarter was down 5.8% compared to the same quarter last year. During the same quarter last year, the firm posted $0.81 EPS.

Cactus Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Friday, August 29th will be issued a $0.14 dividend. This is a positive change from Cactus's previous quarterly dividend of $0.13. The ex-dividend date is Friday, August 29th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.4%. Cactus's dividend payout ratio (DPR) is presently 19.62%.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on the company. JPMorgan Chase & Co. dropped their target price on Cactus from $52.00 to $50.00 and set a "neutral" rating for the company in a report on Wednesday, May 28th. Barclays dropped their target price on Cactus from $54.00 to $53.00 and set an "overweight" rating for the company in a report on Friday, June 20th. Finally, Stifel Nicolaus dropped their target price on Cactus from $57.00 to $53.00 and set a "buy" rating for the company in a report on Friday.

Hedge Funds Weigh In On Cactus

A number of large investors have recently bought and sold shares of WHD. LPL Financial LLC boosted its holdings in Cactus by 25.2% during the 4th quarter. LPL Financial LLC now owns 12,689 shares of the company's stock valued at $741,000 after acquiring an additional 2,553 shares during the period. Norges Bank purchased a new position in Cactus during the 4th quarter valued at $11,193,000. Pictet Asset Management Holding SA boosted its holdings in Cactus by 23.9% during the 4th quarter. Pictet Asset Management Holding SA now owns 10,508 shares of the company's stock valued at $613,000 after acquiring an additional 2,025 shares during the period. O Shaughnessy Asset Management LLC boosted its holdings in Cactus by 1.8% during the 4th quarter. O Shaughnessy Asset Management LLC now owns 10,382 shares of the company's stock valued at $606,000 after acquiring an additional 180 shares during the period. Finally, Geode Capital Management LLC boosted its holdings in Cactus by 2.6% during the 4th quarter. Geode Capital Management LLC now owns 1,804,107 shares of the company's stock valued at $105,308,000 after acquiring an additional 45,821 shares during the period. Hedge funds and other institutional investors own 85.11% of the company's stock.

Cactus Trading Down 6.2%

The company has a market cap of $3.17 billion, a PE ratio of 14.98, a PEG ratio of 3.72 and a beta of 1.48. The stock has a fifty day moving average of $44.61 and a 200-day moving average of $47.11. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.47 and a current ratio of 4.85.

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.