Cactus (NYSE:WHD) Trading Up 3.8% - What's Next?

Key Points

• Shares rose 3.8% to $51.62 on Tuesday amid light trading (189,961 shares, down ~82% vs. average), and Wall Street's consensus is a Moderate Buy with a $56.33 average price target — several firms have raised targets (Piper Sandler $73, Citi $63, Barclays $62).
• Cactus beat Q4 estimates with $0.65 EPS vs. $0.58 expected and $261.2M revenue vs. $250.6M expected, although revenue was down about 4% year-over-year.
• The company pays a $0.14 quarterly dividend (1.1% yield), but insiders have been net sellers (president sold 106,809 shares; 200,000 shares sold in the last 90 days) while institutional investors hold ~85.1% of the stock and several large funds increased positions.

Cactus, Inc. (NYSE:WHD - Get Free Report)'s share price was up 3.8% on Tuesday . The stock traded as high as $51.86 and last traded at $51.6230. Approximately 189,961 shares were traded during mid-day trading, a decline of 82% from the average daily volume of 1,039,196 shares. The stock had previously closed at $49.75.

Wall Street Analysts Forecast Growth

Several analysts have weighed in on WHD shares. Piper Sandler started coverage on shares of Cactus in a research note on Tuesday, February 24th. They issued an "overweight" rating and a $73.00 price objective for the company. Barclays lifted their price objective on shares of Cactus from $56.00 to $62.00 and gave the stock an "overweight" rating in a research note on Monday, March 2nd. Wall Street Zen cut shares of Cactus from a "buy" rating to a "hold" rating in a research note on Saturday, March 21st. Weiss Ratings reiterated a "hold (c)" rating on shares of Cactus in a research note on Friday, March 27th. Finally, Citigroup boosted their target price on shares of Cactus from $55.00 to $63.00 and gave the company a "buy" rating in a research report on Tuesday, March 3rd. Four analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $56.33.

Cactus Stock Up 3.4%

The firm's 50-day moving average price is $52.32 and its 200 day moving average price is $46.71. The company has a market capitalization of $4.11 billion, a price-to-earnings ratio of 21.47, a PEG ratio of 4.73 and a beta of 1.31. The company has a current ratio of 5.81, a quick ratio of 4.13 and a debt-to-equity ratio of 0.01.

Cactus (NYSE:WHD - Get Free Report) last issued its earnings results on Wednesday, February 25th. The company reported $0.65 EPS for the quarter, beating the consensus estimate of $0.58 by $0.07. The company had revenue of $261.20 million during the quarter, compared to analysts' expectations of $250.60 million. Cactus had a net margin of 15.39% and a return on equity of 15.18%. The business's revenue for the quarter was down 4.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.71 EPS. On average, sell-side analysts forecast that Cactus, Inc. will post 3.08 EPS for the current fiscal year.

Cactus Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, March 19th. Investors of record on Monday, March 2nd were issued a dividend of $0.14 per share. The ex-dividend date of this dividend was Monday, March 2nd. This represents a $0.56 annualized dividend and a dividend yield of 1.1%. Cactus's payout ratio is 23.33%.

Insider Activity

In related news, President Joel Bender sold 106,809 shares of Cactus stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $49.92, for a total transaction of $5,331,905.28. Following the sale, the president directly owned 27,793 shares of the company's stock, valued at approximately $1,387,426.56. The trade was a 79.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last 90 days, insiders have sold 200,000 shares of company stock worth $10,039,080. Insiders own 13.75% of the company's stock.

Institutional Investors Weigh In On Cactus

A number of institutional investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP grew its holdings in Cactus by 20.0% during the 4th quarter. Wellington Management Group LLP now owns 3,963,961 shares of the company's stock worth $181,074,000 after acquiring an additional 659,366 shares during the last quarter. State Street Corp grew its holdings in Cactus by 3.0% during the 4th quarter. State Street Corp now owns 2,844,994 shares of the company's stock worth $129,959,000 after acquiring an additional 83,190 shares during the last quarter. Capital International Investors grew its holdings in Cactus by 27.0% during the 4th quarter. Capital International Investors now owns 2,343,731 shares of the company's stock worth $107,062,000 after acquiring an additional 498,210 shares during the last quarter. Geode Capital Management LLC grew its holdings in Cactus by 1.5% during the 4th quarter. Geode Capital Management LLC now owns 1,964,059 shares of the company's stock worth $89,729,000 after acquiring an additional 28,415 shares during the last quarter. Finally, First Trust Advisors LP grew its holdings in Cactus by 17.4% during the 4th quarter. First Trust Advisors LP now owns 1,839,336 shares of the company's stock worth $84,021,000 after acquiring an additional 272,452 shares during the last quarter. 85.11% of the stock is owned by institutional investors.

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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