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

Cactus, Inc. (NYSE:WHD)’s share price reached a new 52-week high during trading on Monday . The stock traded as high as $59.54 and last traded at $59.3970, with a volume of 101048 shares changing hands. The stock had previously closed at $56.96.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on WHD. Zacks Research lowered Cactus from a “strong-buy” rating to a “hold” rating in a report on Monday, January 26th. Barclays boosted their price target on shares of Cactus from $62.00 to $70.00 and gave the company an “overweight” rating in a report on Monday, May 11th. Wall Street Zen downgraded shares of Cactus from a “buy” rating to a “hold” rating in a report on Saturday, March 21st. Weiss Ratings reissued a “hold (c)” rating on shares of Cactus in a research note on Friday, March 27th. Finally, Citigroup raised their price target on shares of Cactus from $63.00 to $65.00 and gave the stock a “buy” rating in a research note on Monday, May 11th. Four investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat.com, Cactus currently has a consensus rating of “Moderate Buy” and an average target price of $57.83.

Cactus Stock Performance

The company has a market capitalization of $4.79 billion, a P/E ratio of 56.34, a PEG ratio of 2.17 and a beta of 1.37. The stock has a fifty day simple moving average of $51.56 and a 200-day simple moving average of $49.91. The company has a quick ratio of 1.71, a current ratio of 2.61 and a debt-to-equity ratio of 0.01.

Cactus (NYSE:WHD) last issued its earnings results on Thursday, May 7th. The company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.65 by $0.05. The company had revenue of $388.35 million for the quarter, compared to the consensus estimate of $380.42 million. Cactus had a net margin of 6.17% and a return on equity of 15.43%. The firm’s revenue for the quarter was up 38.5% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.73 EPS. Equities analysts forecast that Cactus, Inc. will post 2.84 EPS for the current year.

Cactus Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, June 18th. Shareholders of record on Monday, June 1st will be paid a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Monday, June 1st. Cactus’s dividend payout ratio is currently 52.83%.

Insider Transactions at Cactus

In other news, President Joel Bender sold 106,809 shares of Cactus stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $49.92, for a total value of $5,331,905.28. Following the completion of the transaction, the president owned 27,793 shares in the company, valued at approximately $1,387,426.56. The trade was a 79.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Alan Semple sold 10,206 shares of the business’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 value of $577,863.72. Following the completion of the transaction, the director directly owned 29,444 shares in the company, valued at $1,667,119.28. The trade was a 25.74% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 222,206 shares of company stock valued at $11,295,784. Corporate insiders own 12.91% of the company’s stock.

Institutional Trading of Cactus

Hedge funds and other institutional investors have recently made changes to their positions in the business. Wellington Management Group LLP raised its holdings 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 buying an additional 659,366 shares during the last quarter. State Street Corp increased its position in Cactus by 3.0% in the 4th quarter. State Street Corp now owns 2,844,994 shares of the company’s stock valued at $129,959,000 after acquiring an additional 83,190 shares in the last quarter. Capital International Investors increased its position in Cactus by 27.0% in the 4th quarter. Capital International Investors now owns 2,343,731 shares of the company’s stock valued at $107,062,000 after acquiring an additional 498,210 shares in the last quarter. First Trust Advisors LP raised its stake in shares of Cactus by 13.7% in the first quarter. First Trust Advisors LP now owns 2,090,619 shares of the company’s stock worth $99,033,000 after acquiring an additional 251,283 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in shares of Cactus by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 1,964,059 shares of the company’s stock worth $89,729,000 after purchasing an additional 28,415 shares in the last quarter. 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.