HOUSTON—Scott Bender, Chairman and CEO of Cactus, Inc. (NYSE:WHD), executed a significant stock transaction on November 6, 2024. Bender sold 1 million shares of Class A Common Stock at a price of $65.35 per share, totaling approximately $65.3 million.
The sale decreased Bender's direct ownership to 41,776 shares of Class A Common Stock. The transaction was part of a series of movements involving Class A and Class B Common Stock, with other transactions involving acquisitions and dispositions of shares without a specified dollar value.
Cactus, Inc., an oil and gas field machinery and equipment company based in Houston, continues to see active management of its stock by its executives.
In other recent news, Cactus Inc (NYSE:WHD). has reported a slight revenue increase in its Q3 2024 results, with a focus on strategic initiatives such as international expansion and new product development. Despite industry challenges, the company has maintained a robust cash balance and provided shareholders with a quarterly dividend. However, the company anticipates a minor revenue decline in the upcoming quarter.
Cactus reported Q3 2024 revenue of $293 million, a 1% sequential increase, and adjusted EBITDA of $100 million. The company's Pressure Control segment experienced a minor revenue decrease of 1.1%, while the Spoolable Technology segment saw a 4.3% increase. However, corporate expenses rose due to professional fees from a halted growth initiative.
The company is placing emphasis on international growth, expecting a significant increase in international revenue from Spoolable Technologies. Cactus is also launching new products, including a wellhead system and a frac valve design. The Board approved a quarterly dividend of $0.13 per share, payable in December.
Despite the projected mid-single digit revenue decline in both major segments in Q4, Cactus remains optimistic about its strategic initiatives and its potential for shareholder returns by the end of 2025 if acquisition opportunities do not materialize. These are the latest developments from the company.
InvestingPro Insights
Scott Bender's substantial stock sale comes at a time when Cactus, Inc. (NYSE:WHD) is experiencing strong market performance. According to InvestingPro data, the company's stock has seen a significant 55.59% price total return over the past year, with a 31.45% increase in the last six months alone. This upward trajectory is further emphasized by the stock trading near its 52-week high, at 96.29% of that peak.
The company's financial health appears robust, with InvestingPro Tips highlighting that Cactus holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations. This strong financial position is complemented by the company's ability to generate sufficient cash flows to cover interest payments, indicating financial stability.
Cactus has also demonstrated a commitment to shareholder returns, having raised its dividend for six consecutive years. While the current dividend yield stands at 0.79%, the company has shown an 8.33% dividend growth in the last twelve months, suggesting a focus on increasing shareholder value.
It's worth noting that Cactus is trading at a relatively high Price/Book multiple of 5.34, which may indicate investor confidence in the company's future prospects. However, potential investors should be aware that stock price movements are quite volatile, as pointed out by one of the InvestingPro Tips.
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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