VELA Investment Management LLC Acquires 51,158 Shares of Cactus, Inc. $WHD

Key Points

• VELA Investment Management LLC increased its stake in Cactus, Inc. by 79.6% during Q2, owning a total of 115,440 shares valued at approximately $5 million.
• Cactus, Inc. recently announced a dividend increase from $0.13 to $0.14 per share, reflecting an annual yield of 1.6% and a payout ratio of 21.13%.
• Analysts have varied opinions on Cactus’s stock, with ratings ranging from strong sell to buy, and an average target price set at $51.67.

VELA Investment Management LLC lifted its position in Cactus, Inc. (NYSE:WHD - Free Report) by 79.6% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 115,440 shares of the company's stock after acquiring an additional 51,158 shares during the period. Cactus makes up approximately 1.4% of VELA Investment Management LLC's holdings, making the stock its 16th biggest holding. VELA Investment Management LLC owned 0.14% of Cactus worth $5,047,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of the company. Vest Financial LLC raised its position in shares of Cactus by 39.4% in the 2nd quarter. Vest Financial LLC now owns 79,760 shares of the company's stock valued at $3,487,000 after acquiring an additional 22,557 shares during the period. Yousif Capital Management LLC raised its position in shares of Cactus by 3.4% in the 2nd quarter. Yousif Capital Management LLC now owns 25,433 shares of the company's stock valued at $1,112,000 after acquiring an additional 840 shares during the period. Allspring Global Investments Holdings LLC raised its position in shares of Cactus by 30.1% in the 2nd quarter. Allspring Global Investments Holdings LLC now owns 241,828 shares of the company's stock valued at $10,899,000 after acquiring an additional 55,968 shares during the period. CWM LLC raised its position in shares of Cactus by 131.7% in the 2nd quarter. CWM LLC now owns 2,966 shares of the company's stock valued at $130,000 after acquiring an additional 1,686 shares during the period. Finally, Vanguard Personalized Indexing Management LLC raised its position in shares of Cactus by 20.6% in the 2nd quarter. Vanguard Personalized Indexing Management LLC now owns 6,129 shares of the company's stock valued at $268,000 after acquiring an additional 1,046 shares during the period. 85.11% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at Cactus

In related news, EVP William D. Marsh sold 10,172 shares of the firm's stock in a transaction on Tuesday, September 9th. The shares were sold at an average price of $41.32, for a total value of $420,307.04. Following the completion of the transaction, the executive vice president directly owned 11,088 shares of the company's stock, valued at approximately $458,156.16. This trade represents a 47.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 13.75% of the company's stock.

Cactus Price Performance

Shares of WHD opened at $35.60 on Friday. The stock has a market capitalization of $2.84 billion, a P/E ratio of 13.43, a P/E/G ratio of 3.33 and a beta of 1.48. Cactus, Inc. has a twelve month low of $33.20 and a twelve month high of $70.01. The company has a 50 day moving average of $39.59 and a 200-day moving average of $41.39. 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 results on Wednesday, July 30th. The company reported $0.66 earnings per share for the quarter, missing the consensus estimate of $0.67 by ($0.01). The business had revenue of $273.58 million for the quarter, compared to the consensus estimate of $280.28 million. Cactus had a return on equity of 17.34% and a net margin of 16.19%.Cactus's revenue was down 5.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.81 earnings per share. As a group, equities research analysts forecast that Cactus, Inc. will post 3.08 EPS for the current fiscal year.

Cactus Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, September 18th. Investors of record on Friday, August 29th were paid a $0.14 dividend. This is a boost from Cactus's previous quarterly dividend of $0.13. This represents a $0.56 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Friday, August 29th. Cactus's dividend payout ratio (DPR) is 21.13%.

Analysts Set New Price Targets

A number of analysts recently weighed in on WHD shares. Zacks Research downgraded shares of Cactus from a "hold" rating to a "strong sell" rating in a research report on Monday, September 8th. Stifel Nicolaus dropped their target price on shares of Cactus from $57.00 to $53.00 and set a "buy" rating on the stock in a report on Friday, August 1st. Wall Street Zen upgraded shares of Cactus from a "sell" rating to a "hold" rating in a report on Saturday, August 30th. Weiss Ratings restated a "hold (c)" rating on shares of Cactus in a report on Wednesday, October 8th. Finally, Barclays restated an "overweight" rating and set a $52.00 target price (down from $53.00) on shares of Cactus in a report on Monday, August 4th. Two research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $51.67.

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.

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