Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on May 9, Scott Bender, Chairman and CEO at Cactus (NYSE:WHD), as per the latest SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Bender executed a sale of 600,000 shares of Cactus with a total value of $30,843,161.
During Friday's morning session, Cactus shares up by 1.25%, currently priced at $51.75.
Discovering Cactus: A Closer Look Cactus Inc is engaged in the designing, manufacturing, and sale of wellheads and pressure control equipment. Its principal products include Cactus SafeDrill wellhead systems, conventional wellheads, and production valves among others. The company also provides mission-critical field services, including service crews to assist with the installation, maintenance, and safe handling of the wellhead and pressure control equipment, as well as repair services for equipment that it sells or rents. It sells or rents its products principally for onshore unconventional oil and gas wells that are utilized during the drilling, completion (including fracturing), and production. The company has two operating segments; Pressure Control , which generates key revenue and Spoolable Technologies.
A Deep Dive into Cactus's Financials Revenue Growth: Cactus displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 20.02%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Energy sector.
Insights into Profitability:
- Gross Margin: With a high gross margin of 38.4%, the company demonstrates effective cost control and strong profitability relative to its peers.
- Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.6, Cactus showcases strong earnings per share.
Valuation Metrics:
- Price to Earnings (P/E) Ratio: Cactus's P/E ratio of 20.2 is below the industry average, suggesting the stock may be undervalued.
- Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 3.56 suggests overvaluation in the eyes of investors, considering sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 8.89, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
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Illuminating the Importance of Insider Transactions Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Essential Transaction Codes Unveiled Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
Check Out The Full List Of Cactus's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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