Carlson Capital L.P. Invests $1.61 Million in Cactus, Inc. $WHD

Carlson Capital L.P. bought a new position in shares of Cactus, Inc. (NYSE:WHD) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 34,018 shares of the company’s stock, valued at approximately $1,611,000.

Other institutional investors have also modified their holdings of the company. VELA Investment Management LLC raised its stake in Cactus by 24.2% during the 4th quarter. VELA Investment Management LLC now owns 146,042 shares of the company’s stock valued at $6,671,000 after acquiring an additional 28,493 shares during the last quarter. Paradice Investment Management LLC grew its stake in shares of Cactus by 16.1% in the 4th quarter. Paradice Investment Management LLC now owns 675,932 shares of the company’s stock valued at $30,877,000 after purchasing an additional 93,714 shares during the last quarter. UBS Group AG grew its stake in shares of Cactus by 81.8% in the 4th quarter. UBS Group AG now owns 380,513 shares of the company’s stock valued at $17,382,000 after purchasing an additional 171,223 shares during the last quarter. Vest Financial LLC increased its holdings in shares of Cactus by 24.7% in the fourth quarter. Vest Financial LLC now owns 134,568 shares of the company’s stock valued at $6,147,000 after purchasing an additional 26,669 shares during the period. Finally, Morningstar Investment Management LLC acquired a new stake in shares of Cactus during the first quarter worth $949,000. 85.11% of the stock is owned by institutional investors and hedge funds.

Cactus News Roundup

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

Analysts Set New Price Targets

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

Insider Buying and Selling

In other Cactus news, Director Michael Y. Mcgovern sold 12,000 shares of the firm’s stock in a transaction dated Tuesday, May 12th. The shares were sold at an average price of $56.57, for a total transaction of $678,840.00. Following the completion of the transaction, the director directly owned 15,990 shares in the company, valued at approximately $904,554.30. This trade represents a 42.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Scott Bender sold 13,300 shares of the firm’s stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $55.07, for a total transaction of $732,431.00. Following the transaction, the chief executive officer owned 128,219 shares of the company’s stock, valued at $7,061,020.33. This trade represents a 9.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 35,506 shares of company stock worth $1,989,135 in the last three months. Corporate insiders own 12.91% of the company’s stock.

Cactus Stock Performance

Shares of WHD stock opened at $65.04 on Friday. The stock has a fifty day moving average price of $55.52 and a 200 day moving average price of $54.31. The stock has a market cap of $5.21 billion, a PE ratio of 55.59, a P/E/G ratio of 2.34 and a beta of 1.38. Cactus, Inc. has a 1 year low of $33.20 and a 1 year high of $65.19. The company has a debt-to-equity ratio of 0.01, a quick ratio of 1.71 and a current ratio of 2.59.

Cactus (NYSE:WHD) last posted its earnings results on Wednesday, July 29th. The company reported $0.93 EPS for the quarter, topping analysts’ consensus estimates of $0.64 by $0.29. The company had revenue of $449.53 million for the quarter, compared to the consensus estimate of $400.82 million. Cactus had a return on equity of 16.66% and a net margin of 6.01%.Cactus’s quarterly revenue was up 64.3% compared to the same quarter last year. During the same period in the previous year, the business earned $0.66 earnings per share. Sell-side analysts forecast that Cactus, Inc. will post 2.92 earnings per share for the current fiscal year.

Cactus Increases Dividend

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

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.