At Current Price, Is It Too Late To Buy Cactus, Inc. (WHD)?

On Wednesday, shares of Cactus, Inc. (NYSE:WHD) marked $12.64 per share versus a previous $13.19 closing price. With having a -4.17% loss, an insight into the fundamental values of Cactus, Inc., investors would also find a great ally in the technical patterns of the stock movements showed in stock charts. WHD showed a fall of -63.17% within its YTD performance, with highs and lows between $8.16 – $40.68 during the period of 52 weeks, compared to the simple moving average of -56.12% in the period of the last 200 days.

Wolfe Research equity researchers changed the status of Cactus, Inc. (NYSE: WHD) shares from “Peer Perform” to a “Outperform” rating in the report published on March 19th, 2020. Other analysts, including Citigroup, also published their reports on WHD shares. Citigroup repeated the rating from the previous report, marking WHD under “Neutral” rating, in the report published on March 9th, 2020. Additionally, WHD shares got another “Underperform” rating from BofA/Merrill. On the other hand, BofA/Merrill Reiterated the “Buy” rating for WHD shares, as published in the report on June 25th, 2019. BofA/Merrill seems to be going bullish on the price of WHD shares, based on the price prediction for WHD, indicating that the shares will jump from $42 to $48, giving the shares “Buy” rating based on their report from April 16th, 2019. Another “Strong Buy” rating came from Raymond James.

Cactus, Inc. (WHD) Analysis

The present dividend yield for WHD owners is set at 0.03, marking the return investors will get regardless of the company’s performance in the upcoming period. However, in order for the company to be able to pay its dividends, just like it is the case with Cactus, Inc., the company needs to provide a healthy cash flow, currently at the value of 4.55. In addition, the growth of sales from quarter to quarter is recording 0.30%, hinting the company’s progress in the upcoming progress.

In order to gain a clear insight on the performance of Cactus, Inc. (WHD) as it may occur in the future, there are more than several well-rounded types of analysis and research techniques, while equity is most certainly one of the more important indicators into the company’s growth and performance. In this case, you want to make sure that the return on the present equity of 28.50% is enough for you to make a profit out of your investment. You may also count in the quick ratio of the company, currently set at 3.30 so you would make sure that the company is able to cover the debts it may have, which can be easily seen in annual reports of the company.

Set to affect the volatility of a given stock, the average volume can also be a valuable indicator, while WHD is currently recording an average of 516.25K in volumes. The volatility of the stock on monthly basis is set at 14.24%, while the weekly volatility levels are marked at 18.21%with 50.30% of gain in the last seven days. Additionally, long-term investors are predicting the target price of $24.00, indicating growth from the present price of $12.64, which can represent yet another valuable research and analysis points that can help you decide whether to invest in WHD or pass.

What to Look for When Analyzing Cactus, Inc. Shares?

Cactus, Inc. (WHD) is based in the USA and it represents one of the well-known company operating with Basic Materials sector. If you wish to compare WHD shares with other companies under Electronic Equipment and Consumer Goods, a factor to note is the P/E value of 7.92 for Cactus, Inc., while the value 8.30 can represent an indicator in the future growth of the company in terms of investor’s expectations. The later value should have a steady growth rate, increasing and growing gradually, which serves the purpose of reliably showcasing the progress of the company. The value 1.60 is supported by the yearly ESP growth of 173.10%.

Besides from looking into the fundamentals, you should also note the number of people inside the company owning the shares, as the values should be in line with the expectations of investors. In that spirit, the present ownership of stocks inside the company is set at 0.60%, which can provide you with an insight of how involved executives are in owning shares of the company. In oppose to the executives’ share, the institutional ownership counts of shares, carrying an equal significance as an indicator of value, as the presence of large investors may signal a strong company.

Are Institutional Investors Increasing Stakes in WHD Shares?

It appears that more than several institutional investors and hedge funds decided to increase stakes in WHD in the recent period. That is how BlackRock Fund Advisors now has an increase position in WHD by 1.59% in the first quarter, owning 3 million shares of WHD stocks, with the value of $81.99 million after the purchase of an additional 46,900 shares during the last quarter. In the meanwhile, Capital Research & Management Co. also increased their stake in WHD shares changed 0.07% in the first quarter, which means that the company now owns 2.1 million shares of company, all valued at $57.47 million after the acquisition of additional 1,424 shares during the last quarter.

T. Rowe Price Associates, Inc. acquired a new position in Cactus, Inc. during the first quarter, with the value of $46.04 million, and Capital Research & Management Co. increased their stake in the company’s shares by 0.00% in the first quarter, now owning 0 shares valued at $34.13 million after the acquisition of the additional 1.25 million shares during the last quarter.