Encompass Capital Advisors LLC Acquires Shares of 765,514 Cactus, Inc. $WHD

Encompass Capital Advisors LLC bought 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 SEC. The firm bought 765,514 shares of the company’s stock, valued at approximately $36,262,000. Cactus comprises 1.1% of Encompass Capital Advisors LLC’s holdings, making the stock its 23rd largest holding.

Several other hedge funds also recently made changes to their positions in the company. Energy Income Partners LLC grew its position in shares of Cactus by 48.4% in the 1st quarter. Energy Income Partners LLC now owns 300,759 shares of the company’s stock worth $14,247,000 after acquiring an additional 98,124 shares in the last quarter. Quantinno Capital Management LP raised its position in shares of Cactus by 36.7% during the 1st quarter. Quantinno Capital Management LP now owns 8,251 shares of the company’s stock valued at $391,000 after acquiring an additional 2,216 shares in the last quarter. Dean Capital Management lifted its stake in Cactus by 90.0% during the first quarter. Dean Capital Management now owns 81,280 shares of the company’s stock worth $3,850,000 after purchasing an additional 38,502 shares during the last quarter. Gabelli Funds LLC lifted its stake in Cactus by 2.0% during the first quarter. Gabelli Funds LLC now owns 74,099 shares of the company’s stock worth $3,510,000 after purchasing an additional 1,472 shares during the last quarter. Finally, Gamco Investors INC. ET AL boosted its holdings in Cactus by 17.3% in the first quarter. Gamco Investors INC. ET AL now owns 10,430 shares of the company’s stock worth $494,000 after purchasing an additional 1,538 shares during the period. Institutional investors and hedge funds own 85.11% of the company’s stock.

Cactus Trading Down 2.3%

Shares of NYSE:WHD opened at $53.86 on Tuesday. The company has a 50 day moving average of $55.81 and a 200-day moving average of $54.13. The company has a current ratio of 2.61, a quick ratio of 1.71 and a debt-to-equity ratio of 0.01. The firm has a market cap of $4.32 billion, a P/E ratio of 50.81, a P/E/G ratio of 2.08 and a beta of 1.38. Cactus, Inc. has a twelve month low of $33.20 and a twelve month high of $64.30.

Cactus (NYSE:WHD) last released its earnings results on Thursday, May 7th. The company reported $0.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.65 by $0.05. Cactus had a return on equity of 15.43% and a net margin of 6.17%.The company had revenue of $388.35 million during the quarter, compared to analyst estimates of $380.42 million. During the same quarter in the prior year, the company earned $0.73 earnings per share. The company’s revenue for the quarter was up 38.5% on a year-over-year basis. As a group, analysts anticipate that Cactus, Inc. will post 2.92 earnings per share for the current fiscal year.

Cactus Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, June 18th. Shareholders of record on Monday, June 1st were given a $0.14 dividend. This represents a $0.56 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Monday, June 1st. Cactus’s dividend payout ratio is presently 52.83%.

Analyst Ratings Changes

WHD has been the subject of several recent research reports. Piper Sandler boosted their target price on shares of Cactus from $72.00 to $73.00 and gave the company an “overweight” rating in a research note on Tuesday, July 14th. Barclays raised their price target on shares of Cactus from $62.00 to $70.00 and gave the stock an “overweight” rating in a research report on Monday, May 11th. Citigroup lifted their price target on shares of Cactus from $65.00 to $67.00 and gave the company a “buy” rating in a report on Thursday, June 18th. Weiss Ratings raised shares of Cactus from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, June 11th. Finally, Stifel Nicolaus reiterated a “buy” rating and set a $68.00 price objective (up from $66.00) on shares of Cactus in a research note on Tuesday, June 16th. Four research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $63.60.

Insider Transactions at Cactus

In other news, Director Michael Y. Mcgovern sold 12,000 shares of the firm’s stock in a transaction dated Tuesday, May 12th. The stock was sold at an average price of $56.57, for a total transaction of $678,840.00. Following the completion of the sale, the director directly owned 15,990 shares of the company’s stock, valued at $904,554.30. This trade represents a 42.87% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Alan Semple sold 10,206 shares of the business’s stock in a transaction that occurred 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 approximately $1,667,119.28. The trade was a 25.74% decrease in their position. The SEC filing for this sale provides additional information. 12.91% of the stock is owned by company insiders.

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.