Form 4: Cactus Inc. Chairman and CEO Scott Bender Reports Significant Transactions in Class A and B Common Stock

Scott Bender, Chairman and CEO of Cactus Inc., reports a series of transactions involving Class A and B Common Stock, including acquisitions, disposals, and conversions related to redemptions of ownership interests in Cactus WH Enterprises, LLC.

Summary

• On May 7, 2024, Scott Bender, Chairman and CEO of Cactus Inc., engaged in multiple transactions involving the company's Class A and B Common Stock.
• These transactions include the distribution of Class B Common Stock and Units (ownership interests in Cactus Companies, LLC) to Bender Investment Company (BIC) due to redemptions of ownership interests in Cactus WH Enterprises, LLC.
• BIC redeemed a portion of its ownership interests, receiving 600,000 Units and a corresponding number of Class B Common Stock shares.
• BIC also acquired 600,000 shares of Class A Common Stock in connection with the redemption of Units.
• Additionally, Bender disposed of 201,585 shares of Class A Common Stock at $52.03 per share on May 7, 2024.
• Further disposals of Class A Common Stock occurred on May 8 and May 9, 2024, with 39,957 shares sold at $51.01 and 358,458 shares sold at $51.098, respectively.
• Following these transactions, Bender is deemed to beneficially own 11,781,444 shares of Class B Common Stock and 11,781,444 Units owned by Cactus Enterprises.
• The report clarifies that Bender's beneficial ownership includes securities held directly by Cactus Enterprises, with a disclaimer of beneficial ownership of securities not directly owned, except for his indirect pecuniary interest.

Sentiment

Score: 5

Explanation: Neutral sentiment as the document primarily reports transactions without expressing explicit positive or negative views. The sales of shares could be interpreted negatively, but without further context, it's difficult to assess the overall sentiment.

Industry Context

This filing reflects insider transactions, which are closely monitored by investors for insights into management's perspective on the company's value and future prospects. Significant sales by executives can sometimes be interpreted negatively, while purchases are often seen as a positive signal.

Comparison to Industry Standards

• Comparing these transactions to those of executives at similar oilfield service companies like Schlumberger, Halliburton, and Baker Hughes could provide context.
• For example, if executives at those companies are also selling shares, it might indicate a broader industry trend or concern.
• Conversely, if they are buying, it could suggest that Bender's sales are specific to Cactus Inc.'s situation.
• Analyzing the timing and volume of these transactions relative to Cactus Inc.'s earnings announcements and other major news events is also crucial.
• Benchmarking the reported prices against the average trading prices of Cactus Inc.'s stock during the same period will help determine if the transactions were executed at fair market value.

Stakeholder Impact

• Shareholders may react to the reported transactions, potentially influencing the stock price.
• The transactions could affect the ownership structure of the company.

Key Dates