Cactus (NYSE:WHD) Shares Down 8.3% Following Weak Earnings

Key Points

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Cactus, Inc. (NYSE:WHD - Get Free Report)'s share price traded down 8.3% during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $43.05 and last traded at $42.91. 354,619 shares were traded during 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 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.67 by ($0.01). The firm 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%. The firm's quarterly revenue was down 5.8% compared to the same quarter last year. During the same period in the prior year, the company earned $0.81 EPS.

Cactus Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Friday, August 29th will be paid a $0.14 dividend. 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 dividend on an annualized basis and a yield of 1.4%. Cactus's payout ratio is 19.62%.

Wall Street Analysts Forecast Growth

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

Institutional Trading of Cactus

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. T. Rowe Price Investment Management Inc. raised its stake in Cactus by 7.1% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 2,947,835 shares of the company's stock valued at $135,100,000 after purchasing an additional 195,496 shares during the period. Geode Capital Management LLC raised its holdings in shares of Cactus by 2.6% during the 4th quarter. Geode Capital Management LLC now owns 1,804,107 shares of the company's stock worth $105,308,000 after acquiring an additional 45,821 shares in the last quarter. Capital International Investors raised its holdings in shares of Cactus by 14.8% during the 4th quarter. Capital International Investors now owns 1,686,858 shares of the company's stock worth $98,445,000 after acquiring an additional 218,004 shares in the last quarter. First Trust Advisors LP raised its holdings in shares of Cactus by 34.6% during the 4th quarter. First Trust Advisors LP now owns 1,556,565 shares of the company's stock worth $90,841,000 after acquiring an additional 400,452 shares in the last quarter. Finally, Wellington Management Group LLP raised its holdings in shares of Cactus by 12.1% during the 1st quarter. Wellington Management Group LLP now owns 1,508,103 shares of the company's stock worth $69,116,000 after acquiring an additional 162,374 shares in the last quarter. Institutional investors own 85.11% of the company's stock.

Cactus Stock Up 0.3%

The firm has a market capitalization of $3.18 billion, a PE ratio of 15.02, a PEG ratio of 3.62 and a beta of 1.48. The company has a fifty day moving average price of $44.61 and a 200-day moving average price of $46.88. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.48 and a current ratio of 4.85.

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.