Cactus, Inc. Class A (WHD)

Cactus, Inc.'s stock experienced several events in the past six months. Shares traded up due to analyst optimism, including Zacks Research reiterating a "Strong Buy" rating and Citigroup upgrading to "buy" with a $55 price target. The stock saw an increase despite Zacks lowering its Q1 2026 earnings estimate, driven by the maintained "Strong-Buy" rating and recent bullish analyst sentiment. Shares rose following the announcement of restricted stock units (RSUs) and the appointment of a CEO for its new joint venture. The company completed its acquisition of a 65% stake in Baker Hughes' Surface Pressure Control business, a transaction announced in June 2025. An upcoming dividend of US$0.14 per share was announced. A third-quarter dividend of US$0.14 was declared. Cactus reported Q4 revenue of $272.1 million, operating income of $70.5 million, and net income of $57.4 million, with diluted earnings per Class A share of $0.68. Cactus reported $263.95 million in revenue, $61.2 million in operating income, and $50.2 million in net income (diluted EPS $0.60). Cactus reported strong Q1 financial results with revenue of $280.3 million and net income of $54.1 million, with diluted earnings per Class A share of $0.64. The stock price declined by 16.66% between January 7, 2025, and January 6, 2026.

Demand for Cactus, Inc.'s products and services is tied to the cyclical nature of the oil and gas industry, with fluctuations in crude oil and natural gas prices impacting demand. The Pressure Control segment is susceptible to downturns in energy activity. The Spoolable Technologies segment typically experiences sales growth in the second and third quarters, while seasonal slowdowns have contributed to decreased revenues in the fourth quarter. A declining trend in the US oil rig count could constrain Cactus's growth prospects in the US market.

Cactus, Inc. (WHD), founded in 2011 and headquartered in Houston, Texas, is an integrated energy services company that designs, manufactures, sells, and rents pressure control and spoolable pipe technologies for onshore unconventional oil and gas wells. Its products include wellhead systems, monobore systems, frac stacks, zipper manifolds, production trees, and FlexSteel brand spoolable pipes. The company also provides field services for equipment installation, maintenance, repair, and refurbishment.

Cactus, Inc. operates 15 service centers in key U.S. oil and gas regions and three service centers in Eastern Australia. It has manufacturing facilities in Bossier City, Louisiana, and Suzhou, China, and provides equipment and services in Canada and the Middle East. The acquisition of a 65% stake in Baker Hughes' Surface Pressure Control Business has expanded its international presence, with approximately 85% of the acquired business's revenues generated in the Middle East.

Cactus, Inc. has a strong brand reputation, particularly with its "Cactus Wellhead" brand, holding a 41.8% market share in the US surface equipment industry. This is due to its innovative wellhead technology and agile manufacturing processes. However, the company's reputation faces potential risks from ongoing litigation with Cameron concerning patent infringement allegations.

Cactus, Inc. has a significant institutional ownership base, with 659 institutional owners and shareholders holding a total of 94,119,274 shares. Major institutional owners include BlackRock, Inc., Fmr Llc, Vanguard Group Inc, and others. Individual insider ownership is approximately 0.681% of the company's shares, and the three top executives are family members. Cactus WH Enterprises, LLC is also listed as a top shareholder.