Carlson Capital L.P. Makes New $1.61 Million Investment in Cactus, Inc. $WHD

Carlson Capital L.P. acquired a new position in shares of Cactus, Inc. (NYSE:WHD) during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 34,018 shares of the company’s stock, valued at approximately $1,611,000.

Several other hedge funds have also modified their holdings of the stock. Wellington Management Group LLP increased its holdings in Cactus by 20.0% during the 4th quarter. Wellington Management Group LLP now owns 3,963,961 shares of the company’s stock worth $181,074,000 after purchasing an additional 659,366 shares during the period. State Street Corp raised 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 purchasing an additional 83,190 shares in the last quarter. Capital International Investors raised 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 purchasing an additional 498,210 shares in the last quarter. First Trust Advisors LP boosted its stake in shares of 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 buying an additional 251,283 shares during the period. Finally, Geode Capital Management LLC grew 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 buying an additional 28,415 shares in the last quarter. 85.11% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In related news, Director Alan Semple sold 10,206 shares of the business’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $56.62, for a total value of $577,863.72. Following the completion of the sale, the director directly owned 29,444 shares of the company’s stock, valued at $1,667,119.28. The trade was a 25.74% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Scott Bender sold 13,300 shares of the company’s stock in a transaction on Monday, July 27th. The shares were sold at an average price of $55.07, for a total transaction of $732,431.00. Following the completion of the transaction, the chief executive officer owned 128,219 shares of the company’s stock, valued at $7,061,020.33. This represents a 9.40% decrease in their position. 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 corporate insiders.

Cactus Stock Performance

Shares of WHD opened at $65.04 on Friday. The stock has a 50 day moving average price of $55.52 and a 200 day moving average price of $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. The company has a market capitalization of $5.21 billion, a price-to-earnings ratio of 55.59, a price-to-earnings-growth ratio of 2.34 and a beta of 1.38. Cactus, Inc. has a 52-week low of $33.20 and a 52-week high of $65.19.

Cactus (NYSE:WHD) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $0.93 EPS for the quarter, beating the consensus estimate of $0.64 by $0.29. The company had revenue of $449.53 million for 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 firm’s revenue was up 64.3% on a year-over-year basis. During the same period in the prior year, the firm posted $0.66 earnings per share. Research analysts predict that Cactus, Inc. will post 2.92 EPS for the current fiscal year.

Cactus Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Monday, August 31st will be paid a dividend of $0.15 per share. The ex-dividend date is Monday, August 31st. 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. Cactus’s dividend payout ratio (DPR) is 47.86%.

Analysts Set New Price Targets

A number of analysts recently weighed in on WHD shares. Barclays upped their target price 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. Stifel Nicolaus lifted their price target on shares of Cactus from $68.00 to $72.00 and gave the stock a “buy” rating in a research note on Friday. Weiss Ratings upgraded shares of Cactus from a “hold (c-)” rating to a “hold (c)” rating in a report on Thursday, June 11th. Piper Sandler increased their price objective on shares of Cactus from $72.00 to $73.00 and gave the company an “overweight” rating in a research report on Tuesday, July 14th. Finally, Citigroup raised their price objective on shares of Cactus from $65.00 to $67.00 and gave the company a “buy” rating in a report on Thursday, June 18th. Four investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $64.40.

Key Stories 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 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.