Exploring Cactus, Inc. (WHD) Investor Profile: Who’s Buying and Why?

You're looking at the ownership structure of Cactus, Inc. (WHD) and wondering why the smart money is piling in, right? Honestly, when you see institutional investors and hedge funds owning roughly 85.11% of the stock, you have to ask: what do they know that the rest of us are missing? The big players like Vanguard Group Inc. and JPMorgan Chase & Co. are holding massive positions, with Vanguard alone holding over 7.5 million shares valued near $298 million as of early November 2025. This isn't just passive index-buying; it's a defintely strong vote of confidence in a company that posted a solid Q3 2025 earnings per share (EPS) of $0.67, beating the consensus estimate of $0.58. Plus, they're sitting on a war chest of over $405.2 million in cash and cash equivalents as of June 30, 2025, which explains their strategic appetite. Are they buying for the short-term earnings beat, or for the long-term play of the 65% acquisition of Baker Hughes' Surface Pressure Control business? Let's dig into the filings and see who's buying and what their thesis is.

Who Invests in Cactus, Inc. (WHD) and Why?

If you're looking at Cactus, Inc. (WHD), you're looking at a stock where the vast majority of shares are held by professional money managers and the company's founders. This isn't a retail-driven story; it's a conviction play for institutional investors who value financial discipline and strategic growth in the oilfield services sector.

The core takeaway is that the investment profile is dominated by a 'quality-growth' thesis: a debt-free balance sheet plus a clear path to international diversification. Honestly, the low debt and high cash balance make this a rare bird in the energy patch.

Key Investor Types and the Ownership Breakdown

The ownership structure of Cactus, Inc. is unique because it combines massive institutional backing with significant insider control. As of late 2025, institutional shareholders-mutual funds, pension funds, and asset managers-own a staggering 85.11% of the company's stock, though some reports place this figure even higher at 90.69%.

The top institutional holders are household names that often lean toward passive or long-term growth strategies. These are not short-term traders; they are asset gatherers who want stability and a clear long-term trajectory. For example, the top three institutional holders include:

• BlackRock, Inc.: Holds approximately 9.85 million shares, representing about 12.33% of the company.
• The Vanguard Group, Inc.: Holds approximately 7.55 million shares, representing about 9.45% of the company.
• FMR LLC (Fidelity): Holds approximately 9.37 million shares, representing about 11.64% of the company.

What's also crucial is the high insider ownership, which is around 81.94% of the company. This means the executive team and founders, like Joel Bender and Scott Bender, have their fortunes deeply tied to the stock's long-term performance. This alignment of interests is a powerful signal to outside investors.

Investment Motivations: Why the Pros are Buying

Investors are drawn to Cactus, Inc. for a few concrete reasons that cut through the cyclical noise of the energy market. It boils down to a defensive balance sheet and a calculated international expansion.

1. Strategic Growth and International Diversification: The biggest near-term catalyst is the planned acquisition of a 65% interest in Baker Hughes' Surface Pressure Control (SPC) business. This $344.5 million deal is a geopolitical hedge, as 85% of the SPC business's revenue is generated in the Middle East from stable National Oil Company (NOC) contracts. This move reduces reliance on the volatile North American shale market, which has seen declining activity levels in 2025.

2. Financial Prudence (The Debt-Free Edge): The company's balance sheet is defintely a key draw. As of September 30, 2025, Cactus, Inc. reported a cash and cash equivalents balance of $445.6 million and, critically, no bank debt outstanding. This financial strength provides a cushion against industry downturns and funds strategic moves like the SPC acquisition without taking on leverage. Here's the quick math: a current ratio of 5.28 and a quick ratio of 3.74 as of the latest reporting period shows extreme liquidity.

3. Dividend Policy and Payout Safety: While not a high-yield stock, the dividend signals confidence. Cactus, Inc. pays a quarterly dividend of $0.14 per share, equating to an annualized dividend of $0.56 and a yield of about 1.4%. The payout ratio is exceptionally low, sitting at approximately 20% to 22.31% of earnings, which means the dividend is incredibly safe and has significant room for future growth.

Typical Investment Strategies Seen in WHD

The profile of the major holders and the company's fundamentals point to two primary investment strategies:

1. Long-Term Growth-at-a-Reasonable-Price (GARP): Many institutional investors, including the large index funds, treat Cactus, Inc. as a GARP stock. They see a company with strong, resilient margins-Adjusted EBITDA margin was 32.9% in Q3 2025-that is strategically expanding its addressable market. They are willing to hold through near-term domestic volatility because the international growth story, bolstered by the acquisition, provides a clear path to higher earnings power in 2026 and beyond. This is a long-term hold for them.

2. Value Investing (Quality/Balance Sheet Focus): Value-oriented investors are attracted to the capital-light business model and the robust balance sheet. In a volatile sector like oilfield services, a company with $445.6 million in cash and zero debt is a premium asset. They are essentially buying a high-quality business with a fortress balance sheet that can weather any cyclical storm and consolidate its position in the market. The low valuation multiples following a recent stock pullback also presented an attractive entry point for some in 2025. You can find more detail on the company's foundation in the Mission Statement, Vision, & Core Values of Cactus, Inc. (WHD).

Institutional Ownership and Major Shareholders of Cactus, Inc. (WHD)

You want to know who is really driving the stock at Cactus, Inc. (WHD), and the answer is clear: it's the large institutions. Institutional investors-the big money managers like mutual funds and pension funds-own a significant majority of the company, which is a powerful vote of confidence in the company's Mission Statement, Vision, & Core Values of Cactus, Inc. (WHD).

As of late 2025, institutional ownership in Cactus, Inc. (WHD) stands at a staggering 85.11% to 87.6% of the stock. That's a huge concentration of capital, and it means their collective decisions defintely impact the stock's trajectory. This high percentage is common for a mature, specialized energy equipment provider, but it also means you need to pay close attention to their buying and selling patterns.

Top Institutional Investors: Who Holds the Reins?

The shareholder list for Cactus, Inc. reads like a who's who of global asset management. These firms aren't just passive holders; they are making a strategic bet on the long-term health of the onshore oil and gas completion market. Here's a snapshot of the largest institutional investors and their holdings based on the most recent 2025 fiscal year data:

Here's the quick math: BlackRock, Inc. and The Vanguard Group, Inc. alone control over 20% of the company. That's a lot of influence. These are largely passive index funds, but their sheer size makes them critical stakeholders in any corporate governance matter.

Recent Shifts: Are Institutions Buying or Selling?

In the near-term, institutional activity has been mixed, which is typical as fund managers rebalance their portfolios against a backdrop of fluctuating energy prices. Over the last 24 months, institutional investors have collectively bought a total of over 13.45 million shares, representing approximately $670.15 million in transactions, which shows strong underlying demand.

However, recent 2025 filings show some targeted selling, particularly from firms that might be taking profits or reallocating capital:

• Some firms, like Citigroup Inc. and Shell Asset Management Co., significantly reduced their positions, with drops of 43.0% and 54.0%, respectively, as of November 2025.
• Other managers are increasing exposure, like Geode Capital Management LLC, which boosted its position by 2.6% in Q2 2025.
• T. Rowe Price Investment Management Inc. also showed confidence, lifting its stake by 7.1% in Q1 2025.
• New money is still flowing in; for example, AGF Management Ltd. initiated a new position of 15,366 shares during Q2 2025, valued at about $672,000.

The net result is a highly-owned stock with active portfolio management happening on the margins. This suggests the market is still trying to price in the company's future growth against the cyclical nature of the energy sector.

The Impact of Institutional Investors on Cactus, Inc.

The role of these large investors goes beyond just setting the stock price. With over 85% ownership, their influence is strategic and operational. They are the ultimate arbiters of the company's direction.

First, they provide a floor for the stock price. High institutional ownership often means less volatility because these firms are long-term holders, not day traders. Second, their votes are crucial for corporate governance. For instance, in May 2025, stockholders approved an amendment to the Long-Term Incentive Plan, increasing the number of shares reserved for issuance from 5.5 million to 8.5 million; this type of decision is overwhelmingly driven by institutional votes.

These investors are buying into a company that reported strong Q3 2025 results, with an EPS of $0.67 and revenue of $263.95 million, beating analyst estimates. They are betting on management's ability to execute on its strategy, especially in the face of a modest revenue decline year-over-year. The high institutional stake is a signal that the big players believe Cactus, Inc. has defensible technology and strong margins in its Pressure Control and Spoolable Technologies segments. You should view this concentration of ownership as a sign of financial stability, but also recognize that any large, unexpected sell-off from one of the top five holders could cause a significant, albeit temporary, price drop.

Key Investors and Their Impact on Cactus, Inc. (WHD)

You want to know who is buying Cactus, Inc. (WHD) and why, and the short answer is that the stock is overwhelmingly held by major institutional players who are betting on the company's strategic shift toward international markets and its pristine balance sheet.

As of recent 2025 fiscal year filings, institutional investors and hedge funds own a staggering 85.11% of the company's stock, a clear sign that the market views Cactus, Inc. as a high-conviction energy services play. This high concentration means that the company's stock movements are defintely driven by the collective decisions of these large asset managers.

The Big Holders: Who's at the Table?

The investor profile for Cactus, Inc. is dominated by the world's largest asset managers, often referred to as the Big Three, alongside other major fund families. These are typically passive or quasi-passive funds that hold the stock for its inclusion in broad market indices, but their sheer size gives them immense influence on corporate governance (like board elections and executive compensation).

The top institutional holders, based on Q2 2025 13F filings, control billions in market value. Here's a quick look at the largest stakes:

The company's insider ownership is also notable, standing at approximately 16.84% of the stock, which aligns management's interests closely with public shareholders, a factor that large institutions appreciate.

Recent Moves: The Near-Term Investor Sentiment

The first half of 2025 saw significant portfolio adjustments, indicating a bullish conviction from active managers on Cactus, Inc.'s future prospects, particularly following the strategic pivot. This isn't passive index buying; this is fund managers actively increasing their exposure.

• T. Rowe Price Investment Management Inc. boosted its stake by 7.1% in Q1 2025, acquiring an additional 195,496 shares for a total market value of approximately $135.1 million.
• Alliancebernstein L.P. made a substantial move, increasing its stake by 31.5% in the first quarter, adding 208,172 shares.
• Wellington Management Group LLP also lifted its holdings by 12.1% in Q1, signaling confidence.
• On the flip side, some public funds like Strs Ohio reduced their stake by 39.4% in Q2, selling 44,800 shares, which is just normal portfolio rebalancing for a large pension fund.

The key takeaway is that the largest active managers are adding shares, which suggests they see the recent strategic actions as a catalyst for future earnings growth. They are buying the story of diversification.

Investor Influence: The Strategic Buy-In

While the major holders like Vanguard and BlackRock are not typically activist investors, their influence is felt through their support of management's capital allocation strategy. Cactus, Inc.'s decision to maintain a debt-free balance sheet and its strong liquidity of $405.2 million in cash as of Q2 2025 is a direct nod to the financial prudence these large shareholders demand.

The biggest recent event that underscores investor confidence is the $344.5 million acquisition of a 65% controlling interest in Baker Hughes' Surface Pressure Control business in June 2025. This deal is a geopolitical hedge and a growth catalyst, transforming the company's geographic footprint by securing a revenue stream where 85% is generated in the Middle East. The institutional buying activity in 2025 is essentially a vote of confidence in this international expansion strategy, as it promises more stable cash flow and less reliance on the volatile North American shale cycles.

Here's the quick math: The acquisition came with a $600+ million product and aftermarket service backlog as of late 2024, which provides greater revenue visibility for investors. This is exactly what a seasoned financial analyst looks for: a clear path to sustainable, diversified earnings. To understand the foundation of this strategy, you can check out Cactus, Inc. (WHD): History, Ownership, Mission, How It Works & Makes Money.

The company's ability to post strong financial results, like Q2 2025 revenue of $273.6 million and an adjusted EBITDA margin of 31.7%, while executing a major acquisition without incurring bank debt, is what keeps these big investors comfortable. They are buying a resilient, strategically expanding business.

Market Impact and Investor Sentiment

You want to know who is driving the action in Cactus, Inc. (WHD) and why, and the short answer is: institutional money is firmly in control, but their sentiment is cautiously accumulating. The big funds are the dominant force, holding approximately 85.11% of the stock, which is a massive concentration that dictates market moves.

The sentiment among these major shareholders is best described as an opportunistic 'Hold' with a bias toward buying on dips. You see this in the recent 13F filings for the first and second quarters of 2025, where key players like T. Rowe Price Investment Management Inc. boosted their stake by 7.1%, increasing their holding to 2,947,835 shares valued at $135.1 million in Q1 2025. BlackRock, Inc. is another anchor, holding about 14.3% of the company, valued at roughly US$475.8 million as of the end of Q3 2025. They are buying for the long haul, not for a quick trade.

• Institutional ownership is 85.11%-it's a fund-driven stock.
• T. Rowe Price Investment Management Inc. holds $135.1 million worth of shares.
• Insider ownership is low, at only 0.688%.

The one-off insider sales, such as the EVP selling 10,172 shares for over $420,307 in September 2025, are minor in the grand scheme but still trigger a brief market wobble. Honestly, that's just an executive diversifying; it's not a flight from the business.

Recent Market Reactions and Ownership Shifts

The stock market's reaction to ownership changes in Cactus, Inc. (WHD) has been swift and focused on news flow, not just the filings. For instance, the stock plunged over 30% since the start of 2025 up to September, reflecting broader energy sector headwinds and a miss in Q2 earnings expectations.

But the market quickly rewards performance. When the company announced its Q3 2025 results, beating expectations with an adjusted earnings per share (EPS) of $0.67, the stock surged 14% in the following week. That's a clear signal: the market cares more about operational execution and the company's strong balance sheet-cash and cash equivalents stood at a robust $445.6 million as of September 30, 2025-than small shifts in institutional holdings.

Here's a quick look at the Q3 2025 performance that drove the recent positive reaction:

The big money is buying because they see a resilient, cash-rich business, even with a challenging 2025 outlook. You can read more about the long-term strategy in the Mission Statement, Vision, & Core Values of Cactus, Inc. (WHD).

Analyst Perspectives and Future Outlook

The analyst community is currently split between 'Hold' and 'Buy,' which is a classic fence-sitting position after a mixed year. The consensus rating is 'Hold,' but there are two 'Buy' ratings versus four 'Hold' ratings, suggesting a slight tilt toward cautious optimism. The average 12-month price target is around $47.75, with the highest target at $51.00 and the lowest at $40.00.

What this tells you is that analysts see the near-term risk-the full-year 2025 revenue is still forecast to be around $1.06 billion, a decline from the prior year's performance-but they are focused on the 2026 recovery. After the strong Q3 2025 beat, analysts upgraded their 2026 forecasts, anticipating revenue of about US$1.34 billion and statutory EPS of US$3.55. That's a powerful signal of future earnings potential, which is why the institutional investors are accumulating now.

The company's full-year 2025 net capital expenditure (capex) is expected to be modest, between $40 million and $45 million, which shows a focus on capital efficiency. The analysts see the company's ability to generate strong margins and cash flow, even in a downcycle, as the key differentiator. So, the 'Hold' rating isn't a negative; it's a 'Wait for the 2026 rebound' signal.