HOUSTON—Cactus, Inc. (NYSE:WHD) Chief Operating Officer Steven Bender recently executed a significant stock transaction, according to a recent SEC filing. On November 6, Bender sold 100,000 shares of Class A Common Stock, generating a total of approximately $6.5 million at a price of $65.35 per share. Following this sale, Bender retains ownership of 57,567 shares.
The filing also detailed several other transactions involving Bender. He acquired 100,000 shares of Class B Common Stock, which were subsequently disposed of in connection with the redemption of units. Additionally, Bender acquired 100,000 shares of Class A Common Stock in a related transaction.
These transactions were part of a series of exchanges involving ownership interests in Cactus WH Enterprises, LLC, as outlined in the company's amended and restated limited liability company agreement.
In other recent news, Cactus Inc (NYSE:WHD). reported a modest rise in revenue for Q3 2024, reaching $293 million, along with an adjusted EBITDA of $100 million. Despite slight revenue dips in the Pressure Control segment, the company saw a 4.3% increase in the spoolable Technology segment. Corporate expenses rose due to professional fees from a halted growth initiative, but the company's cash balance increased to $303 million. Looking ahead, Cactus expects a mid-single digit revenue decline in both major segments for Q4 2024.
The company is putting a spotlight on international growth, with a significant increase expected in international revenue from spoolable technologies. Cactus is also launching new products, including a wellhead system and a frac valve design, as part of its strategic initiatives. A quarterly dividend of $0.13 per share has been approved by the Board, set to be paid in December.
Despite potential tariffs and industry challenges, Cactus remains well-positioned for growth, with a robust balance sheet and a clear strategy focused on international expansion and product innovation. These developments highlight the company's commitment to enhancing its market position and delivering value to its shareholders.
InvestingPro Insights
Cactus, Inc. (NYSE:WHD) has been experiencing strong market performance, as evidenced by its recent stock transactions and financial metrics. According to InvestingPro data, the company's market capitalization stands at $5.35 billion, reflecting its substantial presence in the oil and gas equipment sector.
The company's financial health appears robust, with InvestingPro Tips highlighting that Cactus holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations. This strong financial position aligns with COO Steven Bender's recent stock transactions, potentially indicating confidence in the company's future prospects.
Cactus has demonstrated impressive growth, with a revenue increase of 12.15% over the last twelve months as of Q3 2024, reaching $1.13 billion. The company's profitability is also noteworthy, with a gross profit margin of 39.15% and an operating income margin of 28.96% for the same period.
Investors have been rewarded with Cactus's commitment to shareholder returns. An InvestingPro Tip notes that the company has raised its dividend for 6 consecutive years, currently offering a dividend yield of 0.79%. This consistent dividend growth, coupled with the stock's strong performance—a 55.59% total return over the past year—may explain why the stock is trading near its 52-week high, at 96.35% of that peak.
It's worth noting that Cactus's stock has shown significant momentum, with a 31.45% price total return over the last six months. However, potential investors should be aware that the stock's price movements are quite volatile, as pointed out by another InvestingPro Tip.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Cactus, Inc., providing a more comprehensive view of the company's financial health and market position.
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