Caterpillar (NYSE:CAT) Trading 1.2% Higher

Caterpillar Inc. (NYSE:CAT)’s share price was up 1.2% during mid-day trading on Thursday . The company traded as high as $330.89 and last traded at $328.99. Approximately 1,133,017 shares changed hands during trading, a decline of 56% from the average daily volume of 2,602,423 shares. The stock had previously closed at $325.14.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on CAT. JPMorgan Chase & Co. raised their price target on shares of Caterpillar from $385.00 to $435.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 16th. Oppenheimer reiterated a “market perform” rating on shares of Caterpillar in a research report on Thursday, April 18th. Truist Financial initiated coverage on Caterpillar in a research note on Thursday, March 14th. They issued a “buy” rating and a $390.00 target price for the company. Stifel Nicolaus lowered shares of Caterpillar from a “buy” rating to a “hold” rating and upped their price objective for the company from $293.00 to $350.00 in a report on Friday, April 26th. Finally, HSBC raised their target price on Caterpillar from $330.00 to $360.00 and gave the stock a “hold” rating in a research note on Tuesday, April 30th. One analyst has rated the stock with a sell rating, ten have issued a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $323.35.

Caterpillar Stock Performance

The stock has a market cap of $160.80 billion, a PE ratio of 14.81, a P/E/G ratio of 1.67 and a beta of 1.14. The firm’s 50-day moving average is $344.92 and its 200 day moving average is $325.57. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.83 and a current ratio of 1.35.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Thursday, April 25th. The industrial products company reported $5.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.12 by $0.48. The firm had revenue of $15.80 billion for 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, research analysts anticipate that Caterpillar Inc. will post 21.81 EPS for the current year.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd will be paid a dividend of $1.41 per share. This represents a $5.64 annualized dividend and a dividend yield of 1.72%. The ex-dividend date of this dividend is Monday, July 22nd. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s dividend payout ratio is 23.48%.

Caterpillar declared that its board has initiated a stock repurchase program on Wednesday, June 12th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the industrial products company to purchase up to 12.7% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, insider Lange Bob De sold 21,847 shares of the company’s stock in a transaction on Monday, May 13th. The stock was sold at an average price of $356.90, for a total transaction of $7,797,194.30. Following the transaction, the insider now owns 71,115 shares of the company’s stock, valued at $25,380,943.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In other news, Director David Maclennan acquired 500 shares of the company’s stock in a transaction that occurred on Friday, May 3rd. The stock was purchased at an average cost of $337.39 per share, with a total value of $168,695.00. Following the purchase, the director now directly owns 5,738 shares of the company’s stock, valued at approximately $1,935,943.82. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Lange Bob De sold 21,847 shares of the business’s stock in a transaction on 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 owns 71,115 shares in the company, valued at $25,380,943.50. The disclosure for this sale can be found here. 0.33% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Caterpillar

Large investors have recently added to or reduced their stakes in the business. Thompson Investment Management Inc. purchased a new position in shares of Caterpillar during the 1st quarter worth approximately $27,000. Fairman Group LLC acquired a new stake in shares of Caterpillar during the first quarter valued at $29,000. Partnership Wealth Management LLC purchased a new position in Caterpillar in the 4th quarter valued at about $26,000. Richardson Financial Services Inc. acquired a new stake in shares of Caterpillar during the 4th quarter worth about $27,000. Finally, Vima LLC purchased a new stake in shares of Caterpillar during the fourth quarter worth about $30,000. 70.98% of the stock is owned by institutional investors and hedge funds.

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.