Caterpillar (NYSE:CAT) Trading Down 0.1%

Caterpillar Inc. (NYSE:CAT)’s stock price was down 0.1% during mid-day trading on Tuesday . The company traded as low as $327.85 and last traded at $328.73. Approximately 446,999 shares traded hands during trading, a decline of 83% from the average daily volume of 2,704,068 shares. The stock had previously closed at $329.08.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the company. Stifel Nicolaus downgraded Caterpillar from a “buy” rating to a “hold” rating and lifted their price objective for the stock from $293.00 to $350.00 in a report on Friday, April 26th. HSBC boosted their price objective on shares of Caterpillar from $330.00 to $360.00 and gave the company a “hold” rating in a report on Tuesday, April 30th. Oppenheimer restated a “market perform” rating on shares of Caterpillar in a report on Thursday, April 18th. TD Cowen boosted their target price on shares of Caterpillar from $338.00 to $340.00 and gave the company a “buy” rating in a research note on Friday, April 26th. Finally, The Goldman Sachs Group lifted their price objective on Caterpillar from $357.00 to $408.00 and gave the stock a “buy” rating in a report on Tuesday, April 16th. One research analyst has rated the stock with a sell rating, nine have given a hold rating and nine have given a buy rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and an average price target of $329.63.

Caterpillar Price Performance

The company has a current ratio of 1.35, a quick ratio of 0.83 and a debt-to-equity ratio of 1.41. The stock has a 50 day simple moving average of $338.37 and a 200-day simple moving average of $330.08. The firm has a market cap of $161.68 billion, a PE ratio of 14.93, a price-to-earnings-growth ratio of 1.69 and a beta of 1.12.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, April 25th. The industrial products company reported $5.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.12 by $0.48. Caterpillar had a return on equity of 58.61% and a net margin of 16.79%. The firm had revenue of $15.80 billion during the quarter, compared to analysts’ expectations of $16.07 billion. Equities analysts anticipate that Caterpillar Inc. will post 21.8 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, August 20th. Investors of record on Monday, July 22nd will be given a dividend of $1.41 per share. This is a positive change 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 dividend on an annualized basis and a dividend yield of 1.71%. Caterpillar’s dividend payout ratio is currently 23.48%.

Caterpillar announced that its Board of Directors has approved a stock repurchase program on Wednesday, June 12th that authorizes the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization authorizes the industrial products company to reacquire up to 12.7% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Caterpillar

In other news, insider Lange Bob De sold 21,847 shares of Caterpillar stock in a transaction dated Monday, May 13th. The stock was sold at an average price of $356.90, for a total value of $7,797,194.30. Following the sale, the insider now directly owns 71,115 shares of the company’s stock, valued at $25,380,943.50. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. In other Caterpillar news, Director David Maclennan bought 500 shares of the firm’s stock in a transaction dated Friday, May 3rd. The shares were purchased at an average cost of $337.39 per share, for a total transaction of $168,695.00. Following the transaction, the director now owns 5,738 shares of the company’s stock, valued at $1,935,943.82. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Lange Bob De sold 21,847 shares of Caterpillar stock in a transaction dated Monday, May 13th. The stock was sold at an average price of $356.90, for a total value of $7,797,194.30. Following the completion of the transaction, the insider now owns 71,115 shares of the company’s stock, valued at approximately $25,380,943.50. The disclosure for this sale can be found here. Insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Several institutional investors have recently modified their holdings of CAT. Partnership Wealth Management LLC purchased a new position in Caterpillar during the fourth quarter worth $26,000. Richardson Financial Services Inc. bought a new position in Caterpillar during the 4th quarter valued at about $27,000. Thompson Investment Management Inc. bought a new stake in Caterpillar in the first quarter worth about $27,000. Fairman Group LLC purchased a new position in shares of Caterpillar during the first quarter valued at approximately $29,000. Finally, Gilfoyle & Co LLC bought a new position in shares of Caterpillar during the fourth quarter valued at approximately $30,000. 70.98% of the stock is owned by institutional investors.

About Caterpillar

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.