Caterpillar (NYSE:CAT) Stock Price Down 2.1%

Caterpillar Inc. (NYSE:CAT)’s share price traded down 2.1% during mid-day trading on Monday . The company traded as low as $325.37 and last traded at $326.10. 833,345 shares were traded during mid-day trading, a decline of 69% from the average session volume of 2,705,189 shares. The stock had previously closed at $333.10.

Analysts Set New Price Targets

Several research analysts have commented on the stock. Raymond James started coverage on shares of Caterpillar in a report on Friday, June 28th. They set a “market perform” rating for the company. JPMorgan Chase & Co. raised their price target on Caterpillar from $385.00 to $435.00 and gave the company an “overweight” rating in a research note on Tuesday, April 16th. Citigroup initiated coverage on Caterpillar in a research report on Wednesday, June 26th. They set a “buy” rating and a $380.00 target price on the stock. TD Cowen upped their price target on Caterpillar from $338.00 to $340.00 and gave the company a “buy” rating in a report on Friday, April 26th. Finally, Truist Financial initiated coverage on shares of Caterpillar in a report on Thursday, March 14th. They set a “buy” rating and a $390.00 price objective on the stock. One analyst has rated the stock with a sell rating, nine have issued a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat.com, Caterpillar currently has a consensus rating of “Hold” and an average price target of $329.63.

Caterpillar Price Performance

The stock has a market cap of $160.28 billion, a price-to-earnings ratio of 14.80, a price-to-earnings-growth ratio of 1.71 and a beta of 1.12. The stock has a fifty day moving average of $339.03 and a two-hundred day moving average of $330.08. The company has a quick ratio of 0.83, a current ratio of 1.35 and a debt-to-equity ratio of 1.41.

Caterpillar (NYSE:CAT) last released 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. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. The firm had revenue of $15.80 billion for the quarter, compared to the consensus estimate of $16.07 billion. On average, equities research analysts anticipate that Caterpillar Inc. will post 21.8 earnings per share for the current year.

Caterpillar Increases Dividend

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

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

Insider Transactions at Caterpillar

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

Institutional Investors Weigh In On Caterpillar

A number of hedge funds have recently bought and sold shares of CAT. Private Trust Co. NA boosted its position in Caterpillar by 0.3% during the 1st quarter. Private Trust Co. NA now owns 10,695 shares of the industrial products company’s stock valued at $3,919,000 after purchasing an additional 30 shares during the period. Southland Equity Partners LLC lifted its position in Caterpillar by 4.0% in the 1st quarter. Southland Equity Partners LLC now owns 784 shares of the industrial products company’s stock valued at $287,000 after purchasing an additional 30 shares during the last quarter. Davis Investment Partners LLC boosted its stake in Caterpillar by 2.1% during the 1st quarter. Davis Investment Partners LLC now owns 1,454 shares of the industrial products company’s stock valued at $541,000 after purchasing an additional 30 shares during the period. Exchange Capital Management Inc. increased its stake in shares of Caterpillar by 3.3% in the first quarter. Exchange Capital Management Inc. now owns 1,016 shares of the industrial products company’s stock valued at $372,000 after purchasing an additional 32 shares during the period. Finally, D Orazio & Associates Inc. raised its holdings in shares of Caterpillar by 4.0% during the first quarter. D Orazio & Associates Inc. now owns 835 shares of the industrial products company’s stock valued at $306,000 after buying an additional 32 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

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.