Bruce M. Rothstein, a director at Cactus, Inc. (NYSE:WHD), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Rothstein sold 45,000 shares of Class A Common Stock on November 19, 2024, at an average price of $65.225 per share. The total value of the sale amounted to approximately $2.94 million.
Following the transactions, Rothstein's direct ownership in Cactus, Inc. stands at 12,177 shares. These transactions reflect Rothstein's ongoing adjustments to his investment in the company, involving both direct and indirect ownership through family trusts.
In other recent news, Cactus Inc (NYSE:WHD). has reported a modest revenue increase for Q3 2024, accompanied by a strategic focus on international expansion and new product development. The company's Q3 revenue was $293 million, with an adjusted EBITDA of $100 million. Despite a slight dip in the Pressure Control segment's revenue, the spoolable Technology segment saw a 4.3% increase.
Cactus Inc. has also maintained a strong cash balance of $303 million, even after significant payments. However, the company expects a mid-single digit revenue decline in both major segments for Q4.
In terms of future developments, Cactus is launching new products and aims to expand its international presence. The company's spoolable technologies are expected to significantly increase international revenue.
On the downside, corporate expenses rose due to professional fees from a halted growth initiative. Despite these challenges, Cactus Inc. remains committed to its strategic objectives, focusing on innovation and potential acquisitions to enhance its market position.
InvestingPro Insights
The recent sale by director Bruce M. Rothstein comes at a time when Cactus, Inc. (NYSE:WHD) is experiencing strong market performance. According to InvestingPro data, the company's stock has shown a robust 55.14% total return over the past year, and is currently trading near its 52-week high at 93.26% of that peak.
Cactus's financial health appears solid, with InvestingPro Tips highlighting that the company holds more cash than debt on its balance sheet and has liquid assets exceeding short-term obligations. This financial stability may provide context for Rothstein's decision to sell, possibly as part of a portfolio rebalancing strategy rather than a lack of confidence in the company's prospects.
The company's growth trajectory is also noteworthy, with revenue growth of 12.15% over the last twelve months as of Q3 2024, and an impressive EBITDA growth of 23.65% during the same period. These figures suggest that Cactus is expanding its operations effectively.
For investors considering Cactus, it's worth noting that the company has raised its dividend for 6 consecutive years, indicating a commitment to shareholder returns. However, with a current dividend yield of 0.8%, income-focused investors may want to weigh this against other factors.
It's important to note that while the stock has performed well, it is trading at a high Price / Book multiple of 5.17, which could suggest the stock is relatively expensive compared to its book value. This valuation metric, combined with the recent insider sale, may prompt investors to carefully consider their entry points.
For a more comprehensive analysis, InvestingPro offers 12 additional tips on Cactus, Inc., which could provide valuable insights for investors looking to make informed decisions about this stock.
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