Caterpillar (NYSE:CAT) Shares Down 0.6%

Caterpillar Inc. (NYSE:CAT)’s share price fell 0.6% during mid-day trading on Tuesday . The stock traded as low as $326.38 and last traded at $327.10. 413,866 shares traded hands during trading, a decline of 85% from the average session volume of 2,679,581 shares. The stock had previously closed at $329.06.

Wall Street Analyst Weigh In

Several research firms recently issued reports on CAT. Oppenheimer restated a “market perform” rating on shares of Caterpillar in a research report on Thursday, April 18th. Citigroup began coverage on shares of Caterpillar in a research report on Wednesday, June 26th. They set a “buy” rating and a $380.00 price objective for the company. Truist Financial began coverage on shares of Caterpillar in a research report on Thursday, March 14th. They set a “buy” rating and a $390.00 price objective for the company. Stifel Nicolaus cut shares of Caterpillar from a “buy” rating to a “hold” rating and raised their price objective for the stock from $293.00 to $350.00 in a research report on Friday, April 26th. Finally, HSBC raised their price objective on shares of Caterpillar from $330.00 to $360.00 and gave the stock a “hold” rating in a research report on Tuesday, April 30th. One analyst has rated the stock with a sell rating, ten have given a hold rating and eight have given a buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $329.63.

Caterpillar Trading Up 0.8 %

The company’s 50 day moving average price is $337.28 and its 200 day moving average price is $331.44. The company has a debt-to-equity ratio of 1.41, a current ratio of 1.35 and a quick ratio of 0.83. The firm has a market cap of $161.93 billion, a PE ratio of 14.95, a price-to-earnings-growth ratio of 1.70 and a beta of 1.12.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Thursday, April 25th. The industrial products company reported $5.60 EPS for the quarter, beating the consensus estimate of $5.12 by $0.48. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. The business had revenue of $15.80 billion during the quarter, compared to analyst estimates of $16.07 billion. As a group, analysts forecast that Caterpillar Inc. will post 21.73 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 20th. Investors of record on Monday, July 22nd will be issued a $1.41 dividend. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend is Monday, July 22nd. This represents a $5.64 annualized dividend and a yield of 1.70%. Caterpillar’s dividend payout ratio (DPR) is 23.48%.

Caterpillar announced that its Board of Directors has authorized a stock buyback plan on Wednesday, June 12th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the industrial products company to reacquire up to 12.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Caterpillar

In other news, Director David Maclennan bought 500 shares of Caterpillar stock in a transaction that occurred on Friday, May 3rd. The shares were purchased at an average price of $337.39 per share, with a total value of $168,695.00. Following the completion of the acquisition, the director now directly owns 5,738 shares in the company, valued at $1,935,943.82. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other Caterpillar news, insider Cheryl H. Johnson sold 1,508 shares of the firm’s stock in a transaction that occurred on Thursday, May 30th. The shares were sold at an average price of $340.00, for a total transaction of $512,720.00. Following the sale, the insider now owns 20,023 shares of the company’s stock, valued at $6,807,820. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director David Maclennan acquired 500 shares of the business’s stock in a transaction on Friday, May 3rd. The shares were bought at an average cost of $337.39 per share, for a total transaction of $168,695.00. Following the acquisition, the director now owns 5,738 shares of the company’s stock, valued at approximately $1,935,943.82. The disclosure for this purchase can be found here. 0.33% of the stock is owned by corporate insiders.

Institutional Trading of Caterpillar

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Partnership Wealth Management LLC acquired a new position in shares of Caterpillar in the 4th quarter valued at $26,000. Richardson Financial Services Inc. acquired a new position in shares of Caterpillar in the 4th quarter valued at $27,000. Thompson Investment Management Inc. acquired a new position in shares of Caterpillar in the 1st quarter valued at $27,000. Fairman Group LLC acquired a new position in shares of Caterpillar in the 1st quarter valued at $29,000. Finally, Gilfoyle & Co LLC acquired a new position in shares of Caterpillar in the 4th quarter valued at $30,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Company Profile

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.