Cactus (NYSE:WHD) Sets New 1-Year High Following Better-Than-Expected Earnings

Cactus, Inc. (NYSE:WHD) reached a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $59.25 and last traded at $57.7150, with a volume of 45297 shares changing hands. The stock had previously closed at $58.00.

The company reported $0.65 earnings per share for the quarter, topping analysts’ consensus estimates of $0.58 by $0.07. Cactus had a net margin of 15.86% and a return on equity of 16.02%. The company had revenue of $261.20 million during the quarter, compared to the consensus estimate of $250.60 million. During the same period in the previous year, the firm posted $0.71 earnings per share. The company’s revenue was down 4.0% on a year-over-year basis.

Cactus Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, March 19th. Investors of record on Monday, March 2nd will be given a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.0%. The ex-dividend date is Monday, March 2nd. Cactus’s payout ratio is 22.31%.

Wall Street Analyst Weigh In

WHD has been the subject of several research reports. Citigroup raised Cactus from a “neutral” rating to a “buy” rating and lifted their target price for the company from $45.00 to $55.00 in a research note on Thursday, December 11th. Barclays lifted their price target on shares of Cactus from $51.00 to $56.00 and gave the stock a “neutral” rating in a research report on Wednesday, December 17th. Stifel Nicolaus lifted their price objective on Cactus from $48.00 to $50.00 and gave the company a “buy” rating in a report on Friday, October 31st. Piper Sandler started coverage on shares of Cactus in a report on Tuesday. They issued an “overweight” rating and a $73.00 price target for the company. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Cactus in a research report on Monday, December 29th. Three analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Cactus currently has an average rating of “Hold” and a consensus target price of $54.00.

Institutional Trading of Cactus

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wellington Management Group LLP grew its position in shares of Cactus by 52.8% in the 3rd quarter. Wellington Management Group LLP now owns 3,304,595 shares of the company’s stock valued at $130,432,000 after acquiring an additional 1,141,249 shares during the period. Balyasny Asset Management L.P. acquired a new stake in Cactus in the 2nd quarter valued at about $30,648,000. Capital International Investors grew its holdings in Cactus by 27.0% during the fourth quarter. Capital International Investors now owns 2,343,731 shares of the company’s stock worth $107,062,000 after purchasing an additional 498,210 shares during the period. Capital Research Global Investors acquired a new position in Cactus during the third quarter worth approximately $19,563,000. Finally, Franklin Resources Inc. raised its stake in Cactus by 559.4% in the fourth quarter. Franklin Resources Inc. now owns 544,998 shares of the company’s stock valued at $24,896,000 after buying an additional 462,345 shares during the period. 85.11% of the stock is owned by institutional investors.

Cactus Trading Down 1.1%

The business has a 50 day moving average of $52.98 and a two-hundred day moving average of $45.16. The company has a current ratio of 5.28, a quick ratio of 3.74 and a debt-to-equity ratio of 0.01. The firm has a market cap of $4.58 billion, a P/E ratio of 22.85, a PEG ratio of 5.96 and a beta of 1.27.

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.