Cactus (NYSE:WHD) Trading Down 8.5% Following Weak Earnings

Shares of Cactus, Inc. (NYSE:WHD) traded down 8.5% during mid-day trading on Thursday following a weaker than expected earnings announcement. The company traded as low as $52.76 and last traded at $52.34. 51,042 shares changed hands during trading, a decline of 89% from the average session volume of 467,429 shares. The stock had previously closed at $57.19.

The company reported $0.71 earnings per share for the quarter, missing analysts’ consensus estimates of $0.72 by ($0.01). The business had revenue of $272.12 million for the quarter, compared to the consensus estimate of $277.59 million. Cactus had a return on equity of 20.24% and a net margin of 16.57%.

Cactus Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, March 20th. Investors of record on Monday, March 3rd will be paid a $0.13 dividend. This represents a $0.52 annualized dividend and a yield of 0.99%. The ex-dividend date is Monday, March 3rd. Cactus’s dividend payout ratio is currently 18.44%.

Analysts Set New Price Targets

Separately, Barclays cut Cactus from an “overweight” rating to an “equal weight” rating and set a $61.00 price objective for the company. in a research report on Monday, November 4th. One analyst has rated the stock with a sell rating, four have issued a hold rating and two have assigned a buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $56.40.

Institutional Trading of Cactus

Several large investors have recently made changes to their positions in WHD. Bridgewater Associates LP bought a new stake in Cactus during the third quarter worth approximately $9,501,000. JPMorgan Chase & Co. lifted its stake in shares of Cactus by 1.7% in the third quarter. JPMorgan Chase & Co. now owns 3,102,984 shares of the company’s stock worth $185,155,000 after buying an additional 52,085 shares during the last quarter. Citigroup Inc. boosted its holdings in shares of Cactus by 81.2% during the 3rd quarter. Citigroup Inc. now owns 89,464 shares of the company’s stock worth $5,338,000 after buying an additional 40,099 shares during the period. Assenagon Asset Management S.A. grew its stake in Cactus by 394.0% in the 4th quarter. Assenagon Asset Management S.A. now owns 160,005 shares of the company’s stock valued at $9,338,000 after buying an additional 127,614 shares during the last quarter. Finally, Principal Financial Group Inc. raised its holdings in Cactus by 4.4% in the 4th quarter. Principal Financial Group Inc. now owns 357,313 shares of the company’s stock worth $20,853,000 after acquiring an additional 15,035 shares during the period. Institutional investors own 85.11% of the company’s stock.

Cactus Stock Performance

The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.67 and a current ratio of 3.82. The stock’s 50-day simple moving average is $60.01 and its two-hundred day simple moving average is $61.16. The stock has a market cap of $4.20 billion, a price-to-earnings ratio of 18.81, a price-to-earnings-growth ratio of 5.13 and a beta of 1.97.

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.