Encompass Capital Advisors LLC Purchases New Shares in Cactus, Inc. $WHD

Key Points

• Encompass Capital Advisors LLC has acquired a new position in Cactus, Inc. (NYSE: WHD), purchasing 599,095 shares valued at approximately $27.5 million.
• Cactus, Inc. recently increased its quarterly dividend from $0.13 to $0.14 per share, reflecting a dividend yield of 1.4%.
• Analyst ratings for Cactus show mixed reviews, with a consensus rating of "Hold" and a consensus target price of $50.75.

Encompass Capital Advisors LLC purchased a new stake in Cactus, Inc. (NYSE:WHD - Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The firm purchased 599,095 shares of the company's stock, valued at approximately $27,457,000. Encompass Capital Advisors LLC owned approximately 0.75% of Cactus as of its most recent filing with the SEC.

A number of other institutional investors have also modified their holdings of the company. T. Rowe Price Investment Management Inc. boosted its holdings in shares of Cactus by 7.1% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 2,947,835 shares of the company's stock valued at $135,100,000 after buying an additional 195,496 shares in the last quarter. Wellington Management Group LLP boosted its holdings in shares of Cactus by 12.1% in the 1st quarter. Wellington Management Group LLP now owns 1,508,103 shares of the company's stock valued at $69,116,000 after buying an additional 162,374 shares in the last quarter. Alliancebernstein L.P. boosted its holdings in shares of Cactus by 31.5% in the 1st quarter. Alliancebernstein L.P. now owns 868,409 shares of the company's stock valued at $39,799,000 after buying an additional 208,172 shares in the last quarter. Northern Trust Corp boosted its holdings in shares of Cactus by 10.4% in the 4th quarter. Northern Trust Corp now owns 724,891 shares of the company's stock valued at $42,305,000 after buying an additional 68,473 shares in the last quarter. Finally, Pacer Advisors Inc. raised its position in shares of Cactus by 10,002.6% in the 1st quarter. Pacer Advisors Inc. now owns 458,053 shares of the company's stock valued at $20,993,000 after purchasing an additional 453,519 shares during the last quarter. 85.11% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Stifel Nicolaus decreased their price objective on shares of Cactus from $57.00 to $53.00 and set a "buy" rating for the company in a research report on Friday, August 1st. JPMorgan Chase & Co. decreased their price objective on shares of Cactus from $52.00 to $50.00 and set a "neutral" rating for the company in a research report on Wednesday, May 28th. Wall Street Zen raised shares of Cactus from a "sell" rating to a "hold" rating in a research report on Saturday, August 30th. Finally, Barclays reaffirmed an "overweight" rating and issued a $52.00 price objective (down from $53.00) on shares of Cactus in a research report on Monday, August 4th. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $50.75.

Cactus Stock Performance

Shares of NYSE WHD traded down $0.93 during midday trading on Monday, reaching $41.86. 689,181 shares of the stock were exchanged, compared to its average volume of 713,380. The firm has a market cap of $3.34 billion, a price-to-earnings ratio of 15.80, a PEG ratio of 4.02 and a beta of 1.53. Cactus, Inc. has a twelve month low of $33.80 and a twelve month high of $70.01. The firm has a 50-day simple moving average of $42.66 and a two-hundred day simple moving average of $43.28. The company has a quick ratio of 3.48, a current ratio of 4.85 and a debt-to-equity ratio of 0.01.

Cactus (NYSE:WHD - Get Free Report) last issued its quarterly earnings data on Wednesday, July 30th. The company reported $0.66 EPS for the quarter, missing analysts' consensus estimates of $0.67 by ($0.01). The firm had revenue of $273.58 million for the quarter, compared to analyst estimates of $280.28 million. Cactus had a return on equity of 17.34% and a net margin of 16.19%.Cactus's revenue for the quarter was down 5.8% compared to the same quarter last year. During the same period in the previous year, the business earned $0.81 EPS. As a group, analysts anticipate that Cactus, Inc. will post 3.08 EPS for the current fiscal year.

Cactus Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, September 18th. Investors of record on Friday, August 29th will be paid a $0.14 dividend. The ex-dividend date of this dividend is Friday, August 29th. This represents a $0.56 dividend on an annualized basis and a yield of 1.3%. This is an increase from Cactus's previous quarterly dividend of $0.13. Cactus's dividend payout ratio is 21.13%.

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.