Sei Investments Co. Acquires 82,510 Shares of Cactus, Inc. $WHD

Key Points

• Sei Investments increased its Cactus holdings by 91.4%, acquiring 82,510 additional shares for a total position of 172,821 shares valued at approximately $8.2 million. Institutional investors collectively own 85.11% of the company.
• Cactus reported strong quarterly results, with earnings of $0.93 per share and revenue of $449.5 million, up 64.3% year over year and above analyst expectations. The company also raised its quarterly dividend from $0.14 to $0.15 per share.
• Analysts maintain a generally favorable outlook, with a “Moderate Buy” consensus and several raised price targets, though upside appears limited near current levels. Management expects Spoolable Technologies revenue to grow 15%–20% next quarter, partially offset by an anticipated 10% decline in Pressure Control revenue.

Sei Investments Co. raised its holdings in shares of Cactus, Inc. (NYSE:WHD - Free Report) by 91.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 172,821 shares of the company's stock after acquiring an additional 82,510 shares during the quarter. Sei Investments Co. owned approximately 0.22% of Cactus worth $8,187,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently made changes to their positions in the stock. Maryland State Retirement & Pension System increased its stake in shares of Cactus by 2.1% in the fourth quarter. Maryland State Retirement & Pension System now owns 10,066 shares of the company's stock worth $460,000 after purchasing an additional 208 shares in the last quarter. Covestor Ltd grew its holdings in shares of Cactus by 8.6% in the fourth quarter. Covestor Ltd now owns 2,758 shares of the company's stock valued at $126,000 after purchasing an additional 219 shares in the last quarter. CANADA LIFE ASSURANCE Co increased its holdings in shares of Cactus by 0.5% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 57,938 shares of the company's stock worth $2,532,000 after buying an additional 269 shares during the last quarter. Oregon Public Employees Retirement Fund increased its stake in Cactus by 1.9% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 15,734 shares of the company's stock worth $719,000 after acquiring an additional 300 shares during the last quarter. Finally, California State Teachers Retirement System raised its holdings in Cactus by 0.5% during the 2nd quarter. California State Teachers Retirement System now owns 66,538 shares of the company's stock valued at $2,909,000 after buying an additional 306 shares during the period. 85.11% of the stock is currently owned by institutional investors.

Cactus Trading Up 0.0%

NYSE WHD opened at $65.04 on Monday. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.81 and a current ratio of 2.59. Cactus, Inc. has a one year low of $33.20 and a one year high of $65.19. The firm has a market cap of $5.21 billion, a price-to-earnings ratio of 55.59, a PEG ratio of 2.45 and a beta of 1.36. The firm has a 50 day simple moving average of $55.52 and a 200-day simple moving average of $54.33.

Cactus (NYSE:WHD - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The company reported $0.93 earnings per share (EPS) for the quarter, beating 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 company had revenue of $449.53 million for the quarter, compared to analyst estimates of $400.82 million. During the same quarter last year, the company earned $0.66 EPS. Cactus's revenue for the quarter was up 64.3% compared to the same quarter last year. Equities research analysts anticipate that Cactus, Inc. will post 2.92 EPS for the current fiscal year.

Cactus Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Monday, August 31st will be paid a $0.15 dividend. 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%. The ex-dividend date is Monday, August 31st. Cactus's payout ratio is currently 47.86%.

Analysts Set New Price Targets

A number of equities analysts recently issued reports on WHD shares. Citigroup boosted their price objective on Cactus from $65.00 to $67.00 and gave the company a "buy" rating in a report on Thursday, June 18th. Barclays upped their price target 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 raised their target price on shares of Cactus from $68.00 to $72.00 and gave the stock a "buy" rating in a report on Friday. Weiss Ratings raised Cactus from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, June 11th. Finally, Piper Sandler raised their target price on Cactus from $72.00 to $73.00 and gave the company an "overweight" rating in a research report on Tuesday, July 14th. Four research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $64.40.

Insiders Place Their Bets

In related news, Director Alan Semple sold 10,206 shares of the firm's stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $56.62, for a total transaction of $577,863.72. Following the transaction, the director owned 29,444 shares in the company, valued at $1,667,119.28. This trade represents a 25.74% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Scott Bender sold 13,300 shares of the company's stock in a transaction on Monday, July 27th. The shares were sold at an average price of $55.07, for a total transaction of $732,431.00. Following the completion of the sale, the chief executive officer owned 128,219 shares of the company's stock, valued at approximately $7,061,020.33. This trade represents a 9.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 35,506 shares of company stock valued at $1,989,135. 12.91% of the stock is currently owned by insiders.

More Cactus News

Here are the key news stories impacting Cactus this week:

• Positive Sentiment: Cactus reported adjusted earnings of $0.93 per share, well above the $0.64-$0.71 analyst estimates and up from $0.66 a year earlier. Revenue increased 64.3% year over year to $449.5 million, also surpassing expectations. Cactus Q2 earnings and revenue report
• Positive Sentiment: Management cited strong international demand and growth in Pressure Control and Spoolable Technologies, which helped expand earnings and backlog. The company expects Spoolable Technologies revenue to rise approximately 15%-20% in the third quarter. WHD Q2 earnings beat estimates
• Positive Sentiment: Cactus raised its quarterly dividend by 7.1%, from $0.14 to $0.15 per share, signaling confidence in cash generation and strengthening the income appeal of the stock. Cactus raises dividend after Q2 results
• Neutral Sentiment: Analyst sentiment remains generally favorable, with a consensus rating of “Moderate Buy” and recent price-target increases from Citigroup, Barclays, Stifel and Piper Sandler. However, the average target of $63.60 suggests limited upside after the recent rally.
• Negative Sentiment: Management expects Pressure Control revenue to decline about 10% in the third quarter, partially offsetting Spoolable Technologies growth and highlighting uneven performance between business segments. Cactus third-quarter segment outlook
• Negative Sentiment: CEO Scott Bender sold 13,300 shares for approximately $732,000, reducing his direct ownership by 9.4%. The transaction may create a modest sentiment overhang, although it does not change the company’s operating outlook. Cactus CEO insider sale

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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