Cactus (NYSE:WHD) Sets New 12-Month High – Still a Buy?

Cactus, Inc. (NYSE:WHD) reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $74.07 and last traded at $73.9060, with a volume of 50257 shares traded. The stock had previously closed at $73.13.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Barclays upped their price objective on shares of Cactus from $70.00 to $74.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Piper Sandler upped their price target 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 lifted their price objective on Cactus from $68.00 to $72.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Citigroup boosted their target price on Cactus from $65.00 to $67.00 and gave the company a “buy” rating in a research note on Thursday, June 18th. Finally, Weiss Ratings raised Cactus from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, June 11th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $65.20.

Cactus Price Performance

The company has a debt-to-equity ratio of 0.01, a current ratio of 2.59 and a quick ratio of 1.81. The stock has a market capitalization of $5.92 billion, a P/E ratio of 63.08, a PEG ratio of 2.63 and a beta of 1.36. The stock’s fifty day moving average is $58.10 and its 200-day moving average is $55.69.

Cactus (NYSE:WHD) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.93 earnings per share for the quarter, topping analysts’ consensus estimates of $0.64 by $0.29. The company had revenue of $449.53 million during the quarter, compared to analysts’ expectations of $400.82 million. Cactus had a return on equity of 16.66% and a net margin of 6.01%.The business’s quarterly revenue was up 64.3% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.66 earnings per share. On average, equities analysts anticipate that Cactus, Inc. will post 3.07 earnings per share for the current year.

Cactus Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Monday, August 31st will be issued a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a yield of 0.8%. This is a boost from Cactus’s previous quarterly dividend of $0.14. The ex-dividend date is Monday, August 31st. Cactus’s dividend payout ratio is 47.86%.

Insider Activity

In other Cactus news, CEO Scott Bender sold 100,000 shares of the company’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $63.89, for a total transaction of $6,389,000.00. Following the completion of the sale, the chief executive officer directly owned 120,527 shares in the company, valued at $7,700,470.03. This represents a 45.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Stephen Tadlock sold 38,455 shares of the firm’s stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $63.80, for a total value of $2,453,429.00. Following the completion of the sale, the chief executive officer directly owned 43,178 shares in the company, valued at approximately $2,754,756.40. This represents a 47.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 263,455 shares of company stock valued at $16,261,764 over the last three months. Corporate insiders own 12.91% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Wellington Management Group LLP boosted its position in shares of Cactus by 20.0% in the fourth quarter. Wellington Management Group LLP now owns 3,963,961 shares of the company’s stock valued at $181,074,000 after acquiring an additional 659,366 shares during the period. State Street Corp increased its holdings in shares of Cactus by 3.0% during the 4th quarter. State Street Corp now owns 2,844,994 shares of the company’s stock worth $129,959,000 after purchasing an additional 83,190 shares during the period. Capital International Investors raised its position in shares of Cactus by 27.0% during the fourth quarter. Capital International Investors now owns 2,343,731 shares of the company’s stock valued at $107,062,000 after buying an additional 498,210 shares during the last quarter. First Trust Advisors LP raised its holdings in Cactus by 13.7% in the 1st quarter. First Trust Advisors LP now owns 2,090,619 shares of the company’s stock valued at $99,033,000 after acquiring an additional 251,283 shares in the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Cactus by 1.5% in the 4th quarter. Geode Capital Management LLC now owns 1,964,059 shares of the company’s stock worth $89,729,000 after acquiring an additional 28,415 shares during the period. 85.11% of the stock is currently owned by institutional investors and hedge funds.

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. Its products are sold and rented primarily for onshore unconventional oil and gas wells for drilling, completion, and production phases of the wells.