Traders Buy Caterpillar (CAT) on Weakness

Traders purchased shares of Caterpillar Inc. (NYSE:CAT) on weakness during trading hours on Thursday. $228.74 million flowed into the stock on the tick-up and $198.16 million flowed out of the stock on the tick-down, for a money net flow of $30.58 million into the stock. Of all equities tracked, Caterpillar had the 32nd highest net in-flow for the day. Caterpillar traded down ($3.71) for the day and closed at $131.39

Several brokerages have weighed in on CAT. Macquarie set a $130.00 price objective on Caterpillar and gave the company a “sell” rating in a report on Tuesday, September 25th. Robert W. Baird set a $171.00 price objective on Caterpillar and gave the company a “buy” rating in a report on Wednesday, October 24th. BMO Capital Markets dropped their price objective on Caterpillar from $195.00 to $185.00 and set an “outperform” rating for the company in a report on Tuesday, July 31st. They noted that the move was a valuation call. Oppenheimer began coverage on Caterpillar in a report on Friday, September 7th. They issued a “market perform” rating for the company. They noted that the move was a valuation call. Finally, OTR Global cut Caterpillar to a “positive” rating in a report on Friday, September 21st. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating, fifteen have issued a buy rating and two have given a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus target price of $158.55.

The company has a market cap of $76.32 billion, a PE ratio of 19.10, a price-to-earnings-growth ratio of 0.71 and a beta of 1.58. The company has a debt-to-equity ratio of 1.60, a current ratio of 1.48 and a quick ratio of 1.02.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Tuesday, October 23rd. The industrial products company reported $2.86 earnings per share for the quarter, topping analysts’ consensus estimates of $2.83 by $0.03. The business had revenue of $13.51 billion for the quarter, compared to analyst estimates of $13.28 billion. Caterpillar had a return on equity of 44.13% and a net margin of 7.13%. Caterpillar’s quarterly revenue was up 18.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.95 EPS. On average, equities analysts expect that Caterpillar Inc. will post 11.64 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 20th. Investors of record on Monday, October 22nd will be given a dividend of $0.86 per share. The ex-dividend date is Friday, October 19th. This represents a $3.44 dividend on an annualized basis and a yield of 2.62%. Caterpillar’s dividend payout ratio is currently 50.00%.

In other news, insider Lange Bob De acquired 1,080 shares of Caterpillar stock in a transaction that occurred on Friday, October 26th. The shares were acquired at an average price of $115.58 per share, for a total transaction of $124,826.40. Following the transaction, the insider now directly owns 11,310 shares of the company’s stock, valued at approximately $1,307,209.80. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Denise C. Johnson sold 35,051 shares of the business’s stock in a transaction on Tuesday, October 2nd. The stock was sold at an average price of $154.18, for a total value of $5,404,163.18. Following the sale, the insider now owns 22,826 shares in the company, valued at approximately $3,519,312.68. The disclosure for this sale can be found here. Insiders own 0.36% of the company’s stock.

Hedge funds have recently modified their holdings of the stock. Global Retirement Partners LLC lifted its holdings in Caterpillar by 16.9% during the 3rd quarter. Global Retirement Partners LLC now owns 2,493 shares of the industrial products company’s stock worth $380,000 after buying an additional 360 shares during the period. Private Capital Group LLC lifted its stake in shares of Caterpillar by 10.7% in the 2nd quarter. Private Capital Group LLC now owns 3,759 shares of the industrial products company’s stock valued at $509,000 after purchasing an additional 362 shares during the period. Courier Capital LLC lifted its stake in shares of Caterpillar by 8.0% in the 2nd quarter. Courier Capital LLC now owns 4,992 shares of the industrial products company’s stock valued at $677,000 after purchasing an additional 371 shares during the period. Segall Bryant & Hamill LLC lifted its stake in shares of Caterpillar by 1.1% in the 2nd quarter. Segall Bryant & Hamill LLC now owns 34,837 shares of the industrial products company’s stock valued at $4,726,000 after purchasing an additional 372 shares during the period. Finally, Financial Advocates Investment Management lifted its stake in shares of Caterpillar by 6.2% in the 2nd quarter. Financial Advocates Investment Management now owns 6,379 shares of the industrial products company’s stock valued at $869,000 after purchasing an additional 374 shares during the period. Institutional investors and hedge funds own 66.56% of the company’s stock.

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Caterpillar Company Profile (NYSE:CAT)

Caterpillar Inc manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives for construction, resource, and energy and transportation industries. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact truck and multi-terrain loaders, forestry excavators, feller bunchers, harvesters, knuckleboom loaders, motorgraders, pipelayers, road reclaimers, site prep tractors, skidders, skid steer loaders, telehandlers, track-type loaders, wheel excavators, and track-type tractors.

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