Caterpillar (NYSE:CAT) Shares Down 0.1%

Shares of Caterpillar Inc. (NYSE:CAT) dropped 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 changed hands during mid-day trading, a decline of 83% from the average daily volume of 2,704,068 shares. The stock had previously closed at $329.08.

Analysts Set New Price Targets

A number of brokerages have issued reports on CAT. Citigroup started coverage on shares of Caterpillar in a research note on Wednesday, June 26th. They set a “buy” rating and a $380.00 target price for the company. Oppenheimer reiterated a “market perform” rating on shares of Caterpillar in a report on Thursday, April 18th. Stifel Nicolaus lowered shares of Caterpillar from a “buy” rating to a “hold” rating and raised their price objective for the company from $293.00 to $350.00 in a research report on Friday, April 26th. TD Cowen increased their price target on shares of Caterpillar from $338.00 to $340.00 and gave the stock a “buy” rating in a research note on Friday, April 26th. Finally, Truist Financial assumed coverage on shares of Caterpillar in a research note on Thursday, March 14th. They issued a “buy” rating and a $390.00 price objective for the company. One analyst has rated the stock with a sell rating, nine have issued a hold rating and nine have issued a buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $329.63.

Caterpillar Price Performance

The company’s 50 day moving average price is $339.74 and its 200 day moving average price is $329.78. The firm has a market capitalization of $159.52 billion, a P/E ratio of 14.84, a PEG ratio of 1.71 and a beta of 1.12. The company has a debt-to-equity ratio of 1.41, a current ratio of 1.35 and a quick ratio of 0.83.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Thursday, April 25th. The industrial products company reported $5.60 EPS for the quarter, topping analysts’ consensus estimates of $5.12 by $0.48. The firm had revenue of $15.80 billion during the quarter, compared to analyst estimates of $16.07 billion. Caterpillar had a return on equity of 58.61% and a net margin of 16.79%. As a group, sell-side analysts anticipate that Caterpillar Inc. will post 21.84 EPS for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 20th. Shareholders of record on Monday, July 22nd will be paid a $1.41 dividend. The ex-dividend date is Monday, July 22nd. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 dividend on an annualized basis and a yield of 1.73%. Caterpillar’s dividend payout ratio (DPR) is presently 23.48%.

Caterpillar declared that its board has authorized a share buyback plan 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 shares through open market purchases. Shares repurchase plans are often an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at Caterpillar

In other news, insider Cheryl H. Johnson sold 1,508 shares of Caterpillar stock in a transaction dated Thursday, May 30th. The shares were sold at an average price of $340.00, for a total value of $512,720.00. Following the completion of the transaction, the insider now owns 20,023 shares of the company’s stock, valued at approximately $6,807,820. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In other 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 transaction, the insider now directly owns 20,023 shares of the company’s stock, valued at $6,807,820. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director David Maclennan bought 500 shares of Caterpillar stock in a transaction dated 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 completion of the acquisition, the director now owns 5,738 shares in the company, 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 Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Transcend Capital Advisors LLC raised its holdings in shares of Caterpillar by 12.0% during the 2nd quarter. Transcend Capital Advisors LLC now owns 3,257 shares of the industrial products company’s stock worth $1,085,000 after buying an additional 348 shares in the last quarter. Capital Market Strategies LLC acquired a new stake in shares of Caterpillar in the 2nd quarter valued at approximately $217,000. Bright Futures Wealth Management LLC. bought a new stake in shares of Caterpillar during the 1st quarter valued at approximately $802,000. Keynote Financial Services LLC acquired a new position in Caterpillar during the 1st quarter worth approximately $1,264,000. Finally, Bush Investment Group LLC bought a new position in Caterpillar in the 1st quarter valued at approximately $231,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

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.