Cactus, Inc. (NYSE:WHD) Given Consensus Recommendation of "Hold" by Brokerages

Key Points

• Analysts maintain a “Hold” consensus on Cactus, with four hold ratings and three buys; the average 12-month price target is $66.80, below the stock’s reported $67.24 opening price.
• Cactus reported a strong quarter, posting EPS of $0.93 versus the $0.64 estimate and revenue of $449.53 million, up 64.3% year over year and above expectations.
• The company raised its quarterly dividend to $0.15 per share, while insiders sold 263,455 shares worth about $16.3 million during the last quarter.

Cactus, Inc. (NYSE:WHD - Get Free Report) has been assigned a consensus rating of "Hold" from the seven analysts that are currently covering the company, Marketbeat.com reports. Four analysts have rated the stock with a hold rating and three have issued a buy rating on the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $66.80.

WHD has been the subject of a number of recent analyst reports. Barclays raised their price objective on Cactus from $70.00 to $74.00 and gave the company an "overweight" rating in a research report on Monday, August 3rd. Weiss Ratings raised Cactus from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, June 11th. Citigroup cut Cactus from a "buy" rating to a "neutral" rating and increased their price target for the company from $67.00 to $75.00 in a research note on Thursday, August 20th. Piper Sandler raised their price target on Cactus from $72.00 to $73.00 and gave the company an "overweight" rating in a report on Tuesday, July 14th. Finally, Wall Street Zen raised shares of Cactus from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th.

Insider Activity at Cactus

In other Cactus news, CEO Scott Bender sold 100,000 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $63.89, for a total value of $6,389,000.00. Following the transaction, the chief executive officer directly owned 120,527 shares of the company's stock, valued at $7,700,470.03. This represents a 45.35% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Tadlock sold 38,455 shares of the stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $63.80, for a total transaction of $2,453,429.00. Following the completion of the transaction, the chief executive officer directly owned 43,178 shares in the company, valued at approximately $2,754,756.40. This represents a 47.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 263,455 shares of company stock worth $16,261,764. 12.91% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Cactus

Institutional investors and hedge funds have recently made changes to their positions in the company. Public Employees Retirement System of Ohio acquired a new stake in Cactus during the 2nd quarter worth approximately $35,000. Aster Capital Management DIFC Ltd grew its holdings in Cactus by 73.4% in the 4th 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 in the 3rd quarter valued at $33,000. Advisors Asset Management Inc. increased its position in Cactus by 113.8% during the 1st quarter. Advisors Asset Management Inc. now owns 1,020 shares of the company's stock worth $47,000 after buying an additional 543 shares during the period. Finally, Harbor Investment Advisory LLC bought a new position in Cactus during the 2nd quarter worth $58,000. Institutional investors and hedge funds own 85.11% of the company's stock.

Cactus Stock Down 1.2%

Shares of WHD stock opened at $67.24 on Wednesday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.81 and a current ratio of 2.59. The firm's 50-day moving average is $59.23 and its 200-day moving average is $56.14. The stock has a market cap of $5.39 billion, a price-to-earnings ratio of 57.47, a PEG ratio of 2.40 and a beta of 1.36. Cactus has a 52-week low of $33.20 and a 52-week high of $74.07.

Cactus (NYSE:WHD - Get Free Report) last issued its earnings results on Wednesday, July 29th. The company reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.64 by $0.29. Cactus had a net margin of 6.01% and a return on equity of 16.66%. The business had revenue of $449.53 million during the quarter, compared to the consensus estimate of $400.82 million. During the same period last year, the business posted $0.66 EPS. Cactus's revenue was up 64.3% on a year-over-year basis. Sell-side analysts predict that Cactus will post 3.12 EPS for the current year.

Cactus Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Monday, August 31st will be paid a dividend of $0.15 per share. The ex-dividend date is Monday, August 31st. This represents a $0.60 dividend on an annualized basis and a dividend yield of 0.9%. This is a boost from Cactus's previous quarterly dividend of $0.14. Cactus's dividend payout ratio is 47.86%.

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.

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