Cactus, Inc. (NYSE:WHD) Given Average Recommendation of “Moderate Buy” by Analysts

Cactus, Inc. (NYSE:WHD) has earned an average rating of “Moderate Buy” from the seven analysts that are presently covering the stock, Marketbeat reports. Three analysts have rated the stock with a hold recommendation and four have assigned a buy recommendation to the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $64.40.

Several research analysts recently commented on the stock. Barclays raised their price target on shares of Cactus from $62.00 to $70.00 and gave the stock an “overweight” rating in a research note on Monday, May 11th. Weiss Ratings raised shares of Cactus from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, June 11th. Piper Sandler upped their target price on shares of Cactus from $72.00 to $73.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. 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 research report on Friday. Finally, Citigroup raised their target price on shares of Cactus from $65.00 to $67.00 and gave the stock a “buy” rating in a research report on Thursday, June 18th.

Insiders Place Their Bets

In other Cactus news, Director Alan Semple sold 10,206 shares of the firm’s stock in a transaction 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 directly 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 document filed with the SEC, which is available through the SEC website. Also, CEO Scott Bender sold 13,300 shares of Cactus stock in a transaction on Monday, July 27th. The shares were sold at an average price of $55.07, for a total value of $732,431.00. Following the sale, the chief executive officer directly 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 35,506 shares of company stock worth $1,989,135 in the last ninety days. 12.91% of the stock is owned by company insiders.

Hedge Funds Weigh In On Cactus

Institutional investors have recently made changes to their positions in the company. Aster Capital Management DIFC Ltd raised its holdings in shares of Cactus by 73.4% in the fourth quarter. Aster Capital Management DIFC Ltd now owns 742 shares of the company’s stock valued at $34,000 after acquiring an additional 314 shares in the last quarter. Johnson Financial Group Inc. purchased a new stake in Cactus in the third quarter worth about $33,000. Advisors Asset Management Inc. grew its holdings 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 acquiring an additional 543 shares in the last quarter. Harbor Investment Advisory LLC bought a new position in Cactus during the 2nd quarter worth about $58,000. Finally, Global Retirement Partners LLC increased its position in Cactus by 39,200.0% during the 4th quarter. Global Retirement Partners LLC now owns 1,179 shares of the company’s stock valued at $54,000 after purchasing an additional 1,176 shares during the period. Hedge funds and other institutional investors own 85.11% of the company’s stock.

Key Headlines Impacting Cactus

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 Stock Performance

WHD stock opened at $65.04 on Friday. Cactus has a twelve month low of $33.20 and a twelve month 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 2.34 and a beta of 1.38. The business’s fifty day simple moving average is $55.52 and its two-hundred day simple moving average is $54.31. The company has a quick ratio of 1.71, a current ratio of 2.59 and a debt-to-equity ratio of 0.01.

Cactus (NYSE:WHD) last issued its 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. The firm had revenue of $449.53 million during the quarter, compared to analyst estimates of $400.82 million. Cactus had a net margin of 6.01% and a return on equity of 16.66%. The business’s revenue was up 64.3% on a year-over-year basis. During the same period in the previous year, the firm earned $0.66 earnings per share. Analysts predict that Cactus will post 2.92 earnings per share for the current year.

Cactus Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Monday, August 31st will be paid a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 0.9%. This is an increase from Cactus’s previous quarterly dividend of $0.14. The ex-dividend date of this dividend is Monday, August 31st. Cactus’s payout ratio is currently 47.86%.

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.