Cactus (NYSE:WHD) Cut to “Strong Sell” at Zacks Research

Zacks Research lowered shares of Cactus (NYSE:WHD) from a hold rating to a strong sell rating in a research note released on Monday morning,Zacks.com reports. Zacks Research also issued estimates for Cactus’ Q3 2025 earnings at $0.60 EPS, Q4 2025 earnings at $0.56 EPS, FY2025 earnings at $2.55 EPS, Q2 2026 earnings at $0.76 EPS, Q3 2026 earnings at $0.65 EPS, Q4 2026 earnings at $0.65 EPS, FY2026 earnings at $2.78 EPS, Q1 2027 earnings at $0.76 EPS and Q1 2027 earnings at $0.75 EPS.

A number of other analysts have also weighed in on the company. JPMorgan Chase & Co. cut their price target on Cactus from $52.00 to $50.00 and set a “neutral” rating on the stock in a research note on Wednesday, May 28th. Wall Street Zen upgraded Cactus from a “sell” rating to a “hold” rating in a research note on Saturday, August 30th. Stifel Nicolaus cut their price target on Cactus from $57.00 to $53.00 and set a “buy” rating on the stock in a research note on Friday, August 1st. Finally, Barclays restated an “overweight” rating and set a $52.00 price target (down previously from $53.00) on shares of Cactus in a research note on Monday, August 4th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Cactus has an average rating of “Hold” and a consensus target price of $50.75.

Cactus Trading Up 1.3%

WHD stock opened at $41.43 on Monday. Cactus has a 1-year low of $33.80 and a 1-year high of $70.01. The company has a debt-to-equity ratio of 0.01, a current ratio of 4.85 and a quick ratio of 3.48. The company has a market capitalization of $3.31 billion, a price-to-earnings ratio of 15.63, a PEG ratio of 3.86 and a beta of 1.53. The business has a 50 day simple moving average of $42.46 and a two-hundred day simple moving average of $43.14.

Cactus (NYSE:WHD) last posted its earnings results on Wednesday, July 30th. The company reported $0.66 EPS for the quarter, missing analysts’ consensus estimates of $0.67 by ($0.01). Cactus had a net margin of 16.19% and a return on equity of 17.34%. The firm had revenue of $273.58 million for the quarter, compared to the consensus estimate of $280.28 million. During the same quarter in the prior year, the company posted $0.81 earnings per share. The firm’s revenue was down 5.8% compared to the same quarter last year. Research analysts anticipate that Cactus will post 3.08 EPS for the current fiscal year.

Cactus Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 18th. Stockholders of record on Friday, August 29th will be paid a $0.14 dividend. The ex-dividend date is Friday, August 29th. This is a positive change from Cactus’s previous quarterly dividend of $0.13. This represents a $0.56 annualized dividend and a dividend yield of 1.4%. Cactus’s dividend payout ratio (DPR) is 21.13%.

Insiders Place Their Bets

In related news, EVP William D. Marsh sold 10,172 shares of Cactus stock in a transaction that occurred on Tuesday, September 9th. The stock was sold at an average price of $41.32, for a total transaction of $420,307.04. Following the completion of the transaction, the executive vice president directly owned 11,088 shares in the company, valued at approximately $458,156.16. This trade represents a 47.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 13.75% of the company’s stock.

Institutional Trading of Cactus

A number of institutional investors and hedge funds have recently made changes to their positions in WHD. Advisors Asset Management Inc. boosted its stake in shares of Cactus by 113.8% in the first quarter. Advisors Asset Management Inc. now owns 1,020 shares of the company’s stock worth $47,000 after acquiring an additional 543 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in Cactus in the 1st quarter valued at $57,000. Financial Harvest LLC purchased a new stake in Cactus in the 1st quarter valued at $130,000. CWM LLC grew its holdings in Cactus by 131.7% in the 2nd quarter. CWM LLC now owns 2,966 shares of the company’s stock valued at $130,000 after buying an additional 1,686 shares in the last quarter. Finally, KBC Group NV grew its holdings in Cactus by 11.9% in the 1st quarter. KBC Group NV now owns 3,373 shares of the company’s stock valued at $155,000 after buying an additional 360 shares in the last quarter. 85.11% of the stock is currently owned by hedge funds and other institutional investors.

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.