Caterpillar (NYSE:CAT) Stock Price Down 0.7%

Caterpillar Inc. (NYSE:CAT) traded down 0.7% during mid-day trading on Wednesday . The stock traded as low as $321.64 and last traded at $323.70. 744,254 shares changed hands during mid-day trading, a decline of 72% from the average session volume of 2,676,123 shares. The stock had previously closed at $326.06.

Analyst Ratings Changes

CAT has been the subject of several analyst reports. 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 target for the company. The Goldman Sachs Group boosted their price target on Caterpillar from $357.00 to $408.00 and gave the stock a “buy” rating in a research note on Tuesday, April 16th. JPMorgan Chase & Co. upped their price target on Caterpillar from $385.00 to $435.00 and gave the company an “overweight” rating in a report on Tuesday, April 16th. HSBC lifted their price objective on Caterpillar from $330.00 to $360.00 and gave the stock a “hold” rating in a report on Tuesday, April 30th. Finally, Oppenheimer restated a “market perform” rating on shares of Caterpillar in a research note on Thursday, April 18th. One investment analyst has rated the stock with a sell rating, ten have given a hold rating and eight have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $329.63.

Caterpillar Stock Up 0.3 %

The company’s 50-day simple moving average is $337.19 and its two-hundred day simple moving average is $331.43. 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 capitalization of $162.41 billion, a P/E ratio of 14.95, a P/E/G 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 for the quarter, beating the consensus estimate of $5.12 by $0.48. The company had revenue of $15.80 billion for the quarter, compared to the consensus estimate 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 expect that Caterpillar Inc. will post 21.73 earnings per share for the current year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 20th. Shareholders of record on Monday, July 22nd will be issued a dividend of $1.41 per share. The ex-dividend date is Monday, July 22nd. This represents a $5.64 annualized dividend and a yield of 1.70%. This is an increase from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s payout ratio is currently 23.48%.

Caterpillar declared that its board has authorized a share repurchase plan on Wednesday, June 12th that permits the company to buyback $20.00 billion in outstanding shares. This buyback authorization permits the industrial products company to buy up to 12.7% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling

In other Caterpillar news, Director David Maclennan acquired 500 shares of the stock in a transaction dated Friday, May 3rd. The shares were acquired at an average cost of $337.39 per share, for a total transaction of $168,695.00. Following the completion of the transaction, the director now directly owns 5,738 shares of the company’s stock, valued at $1,935,943.82. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. In related news, Director David Maclennan acquired 500 shares of Caterpillar stock in a transaction dated Friday, May 3rd. The shares were purchased at an average price of $337.39 per share, for a total transaction of $168,695.00. Following the completion of the transaction, the director now directly owns 5,738 shares in the company, valued at approximately $1,935,943.82. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Cheryl H. Johnson sold 1,508 shares of the firm’s stock in a transaction 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 disclosure for this sale can be found here. 0.33% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Caterpillar

Institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in shares of Caterpillar by 0.3% in the fourth quarter. Vanguard Group Inc. now owns 48,353,370 shares of the industrial products company’s stock valued at $14,296,641,000 after purchasing an additional 129,216 shares in the last quarter. Capital World Investors increased its holdings in shares of Caterpillar by 0.3% in the 4th quarter. Capital World Investors now owns 29,029,953 shares of the industrial products company’s stock worth $8,583,372,000 after buying an additional 96,479 shares during the last quarter. Fisher Asset Management LLC raised its position in shares of Caterpillar by 2.3% during the 4th quarter. Fisher Asset Management LLC now owns 8,145,840 shares of the industrial products company’s stock valued at $2,408,481,000 after buying an additional 179,908 shares in the last quarter. Norges Bank purchased a new position in Caterpillar in the fourth quarter worth about $1,660,560,000. Finally, Charles Schwab Investment Management Inc. raised its position in Caterpillar by 19.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,264,635 shares of the industrial products company’s stock valued at $947,875,000 after purchasing an additional 529,420 shares during the period. Hedge funds and other institutional investors 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.