Cactus, Inc. (NYSE:WHD) Receives Consensus Rating of "Hold" from Brokerages

Key Points

• Analyst consensus is “Hold”: Four of seven analysts rate Cactus as a hold and three recommend buying, with an average 12-month price target of $66.80.
• Cactus reported strong quarterly results: Earnings per share came in at $0.93 versus the $0.64 consensus estimate, while revenue rose 64.3% year over year to $449.53 million.
• Insiders have been selling shares while institutions increased holdings: Insiders sold 363,455 shares worth approximately $23.3 million over the past quarter, while institutional investors own 85.11% of the company.

Cactus, Inc. (NYSE:WHD - Get Free Report) has been assigned an average recommendation of "Hold" from the seven analysts that are presently covering the stock, Marketbeat Ratings reports. Four investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $66.80.

Several research analysts have issued reports on the company. Piper Sandler raised their target price on Cactus from $72.00 to $73.00 and gave the stock an "overweight" rating in a research report on Tuesday, July 14th. Wall Street Zen raised shares of Cactus from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Citigroup cut shares of Cactus from a "buy" rating to a "neutral" rating and increased their price objective for the stock from $67.00 to $75.00 in a research note on Thursday, August 20th. Barclays raised their price objective on shares of Cactus from $70.00 to $74.00 and gave the stock an "overweight" rating in a report on Monday, August 3rd. Finally, Stifel Nicolaus boosted their target price on shares of Cactus from $68.00 to $72.00 and gave the company a "buy" rating in a research report on Friday, July 31st.

Insider Buying and Selling at Cactus

In other news, CEO Steven Bender sold 25,000 shares of the business's stock in a transaction on Friday, August 7th. The shares were sold at an average price of $67.65, for a total transaction of $1,691,250.00. Following the completion of the sale, the chief executive officer owned 99,241 shares of the company's stock, valued at $6,713,653.65. The trade was a 20.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Stephen Tadlock sold 38,455 shares of the company's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $63.80, for a total value of $2,453,429.00. Following the completion of the sale, the chief executive officer owned 43,178 shares of the company's stock, valued at $2,754,756.40. This trade represents a 47.11% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 363,455 shares of company stock worth $23,298,764. 12.91% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Capital International Investors raised its stake 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 period. First Trust Advisors LP boosted its position in shares of Cactus by 13.7% in the first quarter. First Trust Advisors LP now owns 2,090,619 shares of the company's stock worth $99,033,000 after purchasing an additional 251,283 shares during the period. Geode Capital Management LLC boosted its position in shares of Cactus by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 1,964,059 shares of the company's stock worth $89,729,000 after purchasing an additional 28,415 shares during the period. Dimensional Fund Advisors LP increased its stake in shares of Cactus by 3.0% in the first quarter. Dimensional Fund Advisors LP now owns 1,821,142 shares of the company's stock worth $86,266,000 after purchasing an additional 53,576 shares in the last quarter. Finally, Jennison Associates LLC increased its stake in shares of Cactus by 202.3% in the first quarter. Jennison Associates LLC now owns 1,713,701 shares of the company's stock worth $81,178,000 after purchasing an additional 1,146,766 shares in the last quarter. 85.11% of the stock is currently owned by institutional investors.

Cactus Price Performance

Shares of WHD opened at $66.76 on Friday. The firm has a market cap of $5.35 billion, a PE ratio of 57.06, a P/E/G ratio of 2.35 and a beta of 1.37. The company has a current ratio of 2.59, a quick ratio of 1.81 and a debt-to-equity ratio of 0.01. The firm has a fifty day simple moving average of $65.28 and a two-hundred day simple moving average of $57.69. Cactus has a 1-year low of $33.20 and a 1-year high of $74.07.

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

Cactus Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 11th. Shareholders of record on Monday, August 31st were given a $0.15 dividend. The ex-dividend date was Monday, August 31st. This is a boost from Cactus's previous quarterly dividend of $0.14. This represents a $0.60 annualized dividend and a yield of 0.9%. Cactus's payout ratio is 51.28%.

Cactus Company Profile

Cactus, Inc NYSE: WHD designs, manufactures, sells and rents wellhead and pressure-control equipment used in onshore oil and gas drilling and production. Its products include wellhead systems, frac stacks, valves and other equipment engineered to manage pressure and provide structural support during the completion and operation of oil and natural gas wells.

The company also provides field services, including installation, maintenance and technical support for its equipment. Through its spoolable technologies business, Cactus offers flexible pipe and related solutions used in oilfield and industrial applications.

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