Redwood Investments LLC Decreases Stock Holdings in Cactus, Inc. $WHD

Key Points

• Redwood Investments LLC reduced its stake in Cactus, Inc. by 39.6%, holding 30,402 shares worth $1,393,000 after selling 19,911 shares.
• Cactus, Inc. reported a quarterly earnings miss with $0.66 EPS, slightly below the analysts' expectations of $0.67, alongside a revenue drop of 5.8% year-over-year.
• The company declared a quarterly dividend increase to $0.14 per share, reflecting a positive change from the previous $0.13, with an annual yield of 1.3%.

Redwood Investments LLC lowered its stake in shares of Cactus, Inc. (NYSE:WHD - Free Report) by 39.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 30,402 shares of the company's stock after selling 19,911 shares during the quarter. Redwood Investments LLC's holdings in Cactus were worth $1,393,000 as of its most recent SEC filing.

Several other hedge funds have also recently modified their holdings of WHD. Millennium Management LLC acquired a new position in shares of Cactus during the first quarter valued at about $28,924,000. Encompass Capital Advisors LLC acquired a new position in shares of Cactus during the first quarter valued at about $27,457,000. Pacer Advisors Inc. increased its holdings in shares of Cactus by 10,002.6% during the first quarter. Pacer Advisors Inc. now owns 458,053 shares of the company's stock valued at $20,993,000 after acquiring an additional 453,519 shares in the last quarter. Nuveen LLC acquired a new position in shares of Cactus during the first quarter valued at about $11,494,000. Finally, Point72 Asset Management L.P. acquired a new position in shares of Cactus during the fourth quarter valued at about $14,285,000. Institutional investors and hedge funds own 85.11% of the company's stock.

Insider Buying and Selling

In other Cactus news, EVP William D. Marsh sold 10,172 shares of the company's stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $41.32, for a total value of $420,307.04. Following the sale, the executive vice president owned 11,088 shares in the company, valued at approximately $458,156.16. This represents a 47.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Corporate insiders own 13.75% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently commented on WHD. Barclays reiterated an "overweight" rating and issued a $52.00 target price (down previously from $53.00) on shares of Cactus in a research report on Monday, August 4th. Stifel Nicolaus dropped their target price on Cactus from $57.00 to $53.00 and set a "buy" rating on the stock in a research report on Friday, August 1st. Zacks Research lowered Cactus from a "hold" rating to a "strong sell" rating in a research report on Monday, September 8th. Wall Street Zen upgraded Cactus from a "sell" rating to a "hold" rating in a research report on Saturday, August 30th. Finally, JPMorgan Chase & Co. dropped their target price on Cactus from $52.00 to $50.00 and set a "neutral" rating on the stock in a research report on Wednesday, May 28th. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Cactus currently has a consensus rating of "Hold" and a consensus target price of $50.75.

Cactus Stock Performance

Cactus stock traded down $1.72 during mid-day trading on Friday, hitting $40.00. The company had a trading volume of 560,876 shares, compared to its average volume of 585,326. The company has a current ratio of 4.85, a quick ratio of 3.48 and a debt-to-equity ratio of 0.01. Cactus, Inc. has a 12-month low of $33.80 and a 12-month high of $70.01. The company's fifty day moving average is $42.29 and its 200-day moving average is $42.80. The company has a market capitalization of $3.19 billion, a price-to-earnings ratio of 15.09, a P/E/G ratio of 3.94 and a beta of 1.53.

Cactus (NYSE:WHD - Get Free Report) last released its quarterly earnings data on Wednesday, July 30th. The company reported $0.66 EPS for the quarter, missing the consensus estimate of $0.67 by ($0.01). Cactus had a return on equity of 17.34% and a net margin of 16.19%.The company had revenue of $273.58 million during the quarter, compared to analysts' expectations of $280.28 million. During the same quarter in the prior year, the company posted $0.81 EPS. The company's revenue for the quarter was down 5.8% on a year-over-year basis. Equities research analysts predict that Cactus, Inc. will post 3.08 EPS for the current year.

Cactus Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Shareholders of record on Friday, August 29th will be given a $0.14 dividend. The ex-dividend date is Friday, August 29th. This represents a $0.56 annualized dividend and a yield of 1.4%. This is a boost from Cactus's previous quarterly dividend of $0.13. Cactus's payout ratio is currently 21.13%.

Cactus 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.