765,514 Shares in Cactus, Inc. $WHD Bought by Encompass Capital Advisors LLC

Key Points

• Encompass Capital Advisors acquired 765,514 Cactus shares worth approximately $36.3 million, giving it a 0.95% stake and making Cactus 1.1% of its portfolio. Institutional investors and hedge funds collectively own 85.11% of the company.
• Cactus reported quarterly EPS of $0.70, beating estimates by $0.05, while revenue reached $388.35 million, up 38.5% year over year and above expectations.
• Analyst sentiment remains favorable, with Cactus receiving a “Moderate Buy” consensus rating and an average price target of $63.60 versus a share price of $53.86; the company also pays a $0.14 quarterly dividend.

Encompass Capital Advisors LLC bought a new stake in Cactus, Inc. (NYSE:WHD - Free Report) during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 765,514 shares of the company's stock, valued at approximately $36,262,000. Cactus comprises about 1.1% of Encompass Capital Advisors LLC's portfolio, making the stock its 23rd biggest holding. Encompass Capital Advisors LLC owned 0.95% of Cactus as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in WHD. 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 purchasing an additional 543 shares in the last quarter. AQR Capital Management LLC lifted its position in Cactus by 101.1% during the first quarter. AQR Capital Management LLC now owns 11,427 shares of the company's stock valued at $524,000 after buying an additional 5,745 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Cactus by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 39,685 shares of the company's stock worth $1,819,000 after buying an additional 1,733 shares during the period. United Services Automobile Association purchased a new stake in Cactus during the first quarter worth approximately $203,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in Cactus by 26.0% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 226,931 shares of the company's stock worth $10,400,000 after buying an additional 46,835 shares during the period. 85.11% of the stock is currently owned by institutional investors and hedge funds.

Cactus Price Performance

Shares of NYSE WHD opened at $53.86 on Tuesday. The company has a quick ratio of 1.71, a current ratio of 2.61 and a debt-to-equity ratio of 0.01. Cactus, Inc. has a fifty-two week low of $33.20 and a fifty-two week high of $64.30. The business has a 50 day moving average price of $55.81 and a two-hundred day moving average price of $54.13. The firm has a market cap of $4.32 billion, a PE ratio of 50.81, a price-to-earnings-growth ratio of 2.08 and a beta of 1.38.

Cactus (NYSE:WHD - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $0.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.65 by $0.05. The company had revenue of $388.35 million for the quarter, compared to analyst estimates of $380.42 million. Cactus had a return on equity of 15.43% and a net margin of 6.17%.Cactus's quarterly revenue was up 38.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.73 EPS. Sell-side analysts expect that Cactus, Inc. will post 2.92 earnings per share for the current fiscal year.

Cactus Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, June 18th. Investors of record on Monday, June 1st were paid a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Monday, June 1st. Cactus's payout ratio is 52.83%.

Insider Buying and Selling at Cactus

In other Cactus news, Director Michael Y. Mcgovern sold 12,000 shares of the firm's stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $56.57, for a total transaction of $678,840.00. Following the completion of the transaction, the director directly owned 15,990 shares of the company's stock, valued at $904,554.30. This trade represents a 42.87% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Alan Semple sold 10,206 shares of the business's stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $56.62, for a total transaction of $577,863.72. Following the completion of the sale, the director directly owned 29,444 shares of the company's stock, valued at $1,667,119.28. The trade was a 25.74% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 12.91% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently commented on the stock. Barclays raised their target price on shares of 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 target (up from $66.00) on shares of Cactus in a research report on Tuesday, June 16th. Piper Sandler increased 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. Citigroup raised their price objective on Cactus from $65.00 to $67.00 and gave the company a "buy" rating in a research report on Thursday, June 18th. Finally, Weiss Ratings upgraded Cactus from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, June 11th. Four analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $63.60.

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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