Cactus (NYSE:WHD) Trading Up 17.2% After Better-Than-Expected Earnings

Key Points

• Cactus shares surged roughly 17% after the company reported quarterly EPS of $0.93, beating the $0.64 consensus, while revenue rose 64.3% year over year to $449.5 million and exceeded estimates.
• The company raised its quarterly dividend to $0.15 per share from $0.14, equating to a $0.60 annualized payout and approximately a 1.0% yield.
• Analyst sentiment remains favorable, with a “Moderate Buy” consensus and a $63.60 average price target, though recent insider share sales—including 13,300 shares sold by the CEO—could create a modest sentiment overhang.

Cactus, Inc. (NYSE:WHD - Get Free Report) shot up 17.2% on Thursday following a better than expected earnings announcement. The stock traded as high as $61.12 and last traded at $61.3150. Approximately 1,059,312 shares traded hands during mid-day trading, an increase of 16% from the average session volume of 911,433 shares. The stock had previously closed at $52.32.

The company reported $0.93 EPS for the quarter, beating analysts' consensus estimates of $0.64 by $0.29. The company had revenue of $449.53 million during the quarter, compared to the consensus estimate of $400.82 million. Cactus had a return on equity of 15.43% and a net margin of 6.17%.Cactus's quarterly revenue was up 64.3% compared to the same quarter last year. During the same quarter last year, the company earned $0.66 earnings per share.

Cactus Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Monday, August 31st will be paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 1.0%. This is a positive change from Cactus's previous quarterly dividend of $0.14. The ex-dividend date is Monday, August 31st. Cactus's dividend payout ratio (DPR) is 52.83%.

Cactus News Summary

Here are the key news stories impacting Cactus this week:

• Positive Sentiment: Strong earnings and revenue beat: Cactus reported second-quarter 2026 earnings of $0.93 per share, well above the $0.64–$0.71 analyst estimates and up from $0.66 a year earlier. Revenue rose 64.3% year over year to $449.5 million, exceeding the approximately $400.8 million consensus estimate. Cactus Announces Second Quarter 2026 Results
• Positive Sentiment: Profitability exceeded expectations: The company posted a 6.17% net margin and 15.43% return on equity, while the earnings performance reinforced expectations for continued growth in fiscal 2026. Analysts currently forecast approximately $2.92 in full-year EPS. Cactus Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Dividend increased: Cactus raised its quarterly dividend to $0.15 per share from $0.14, a 7.1% increase. The dividend is payable September 11 to shareholders of record August 31, supporting the income-investment case. Cactus Dividend Announcement
• Positive Sentiment: Analyst sentiment remains favorable: Recent firms raised price targets, including Citigroup at $67, Barclays at $70, Stifel at $68 and Piper Sandler at $73. The overall consensus rating is “Moderate Buy,” with an average target of $63.60.
• Neutral Sentiment: Management commentary: The Q2 earnings call transcript gives investors additional context on the quarter and the company’s outlook, but the reported financial results are the primary catalyst. Cactus Q2 2026 Earnings Call Transcript
• Negative Sentiment: CEO insider sale: CEO Scott Bender sold 13,300 shares for approximately $732,000, reducing his direct holdings by 9.4%. Although he retains a substantial stake, insider selling can create a modest sentiment overhang.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the stock. Piper Sandler increased their target price on shares of Cactus from $72.00 to $73.00 and gave the company an "overweight" rating in a report on Tuesday, July 14th. Citigroup boosted their price target on Cactus from $65.00 to $67.00 and gave the stock a "buy" rating in a research note on Thursday, June 18th. Barclays raised their price objective on Cactus from $62.00 to $70.00 and gave the company an "overweight" rating in a research note on Monday, May 11th. Stifel Nicolaus reaffirmed a "buy" rating and set a $68.00 price objective (up from $66.00) on shares of Cactus in a report on Tuesday, June 16th. Finally, Weiss Ratings upgraded Cactus from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, June 11th. Four equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $63.60.

Insider Buying and Selling at Cactus

In other news, CEO Scott Bender sold 13,300 shares of the stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $55.07, for a total value of $732,431.00. Following the sale, the chief executive officer directly owned 128,219 shares in the company, valued at $7,061,020.33. This represents a 9.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Michael Y. Mcgovern sold 12,000 shares of the firm's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $56.57, for a total transaction 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 trade represents a 42.87% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 35,506 shares of company stock valued at $1,989,135 over the last quarter. Corporate insiders own 12.91% of the company's stock.

Hedge Funds Weigh In On Cactus

A number of institutional investors have recently made changes to their positions in WHD. GAMMA Investing LLC boosted its stake in shares of Cactus by 29.5% during the second quarter. GAMMA Investing LLC now owns 2,532 shares of the company's stock valued at $130,000 after acquiring an additional 577 shares during the last quarter. Harbor Investment Advisory LLC acquired a new position in Cactus in the 2nd quarter valued at about $58,000. CoreCap Advisors LLC purchased a new position in Cactus in the 2nd quarter valued at about $321,000. Pacer Advisors Inc. lifted its holdings in Cactus by 128.0% in the 1st quarter. Pacer Advisors Inc. now owns 7,142 shares of the company's stock valued at $338,000 after purchasing an additional 4,010 shares in the last quarter. Finally, Carlson Capital L.P. acquired a new stake in shares of Cactus during the 1st quarter worth about $1,611,000. 85.11% of the stock is owned by institutional investors and hedge funds.

Cactus Trading Up 17.7%

The firm has a market capitalization of $4.94 billion, a PE ratio of 57.87, a P/E/G ratio of 2.00 and a beta of 1.38. The company has a quick ratio of 1.71, a current ratio of 2.61 and a debt-to-equity ratio of 0.01. The business's fifty day moving average price is $55.46 and its 200 day moving average price is $54.16.

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. 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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