Caterpillar (NYSE:CAT) Shares Down 1% – What’s Next?

Caterpillar Inc. (NYSE:CAT)’s stock price fell 1% during mid-day trading on Tuesday . The stock traded as low as $388.67 and last traded at $390.06. 574,528 shares were traded during trading, a decline of 78% from the average session volume of 2,641,928 shares. The stock had previously closed at $393.95.

Analysts Set New Price Targets

Several research analysts have commented on the company. Raymond James initiated coverage on Caterpillar in a report on Friday, June 28th. They set a “market perform” rating on the stock. Evercore ISI reduced their target price on Caterpillar from $338.00 to $321.00 and set an “in-line” rating on the stock in a report on Monday, August 19th. Citigroup raised their price target on shares of Caterpillar from $380.00 to $445.00 and gave the stock a “buy” rating in a report on Wednesday, October 9th. Truist Financial upped their price objective on shares of Caterpillar from $399.00 to $456.00 and gave the company a “buy” rating in a research note on Wednesday, October 9th. Finally, JPMorgan Chase & Co. lifted their target price on shares of Caterpillar from $435.00 to $500.00 and gave the stock an “overweight” rating in a research note on Monday. Three analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have issued a buy rating to the company. According to data from MarketBeat.com, Caterpillar currently has a consensus rating of “Hold” and an average price target of $355.50.

Caterpillar Stock Up 0.2 %

The stock has a market cap of $192.95 billion, a price-to-earnings ratio of 17.80, a PEG ratio of 1.85 and a beta of 1.10. The stock has a 50 day simple moving average of $361.58 and a 200 day simple moving average of $349.92. The company has a quick ratio of 0.78, a current ratio of 1.28 and a debt-to-equity ratio of 1.39.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.53 by $0.46. Caterpillar had a net margin of 16.58% and a return on equity of 59.88%. The business had revenue of $16.69 billion during the quarter, compared to the consensus estimate of $16.91 billion. During the same quarter last year, the firm posted $5.55 EPS. Caterpillar’s revenue was down 3.6% compared to the same quarter last year. As a group, analysts expect that Caterpillar Inc. will post 21.91 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 20th. Stockholders of record on Monday, October 21st will be given a dividend of $1.41 per share. This represents a $5.64 annualized dividend and a dividend yield of 1.43%. The ex-dividend date of this dividend is Monday, October 21st. Caterpillar’s payout ratio is presently 25.46%.

Insider Buying and Selling

In related news, Director Gerald Johnson purchased 100 shares of the business’s stock in a transaction on Wednesday, September 4th. The stock was acquired at an average price of $338.59 per share, for a total transaction of $33,859.00. Following the purchase, the director now owns 2,842 shares of the company’s stock, valued at approximately $962,272.78. This trade represents a 0.00 % increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In related news, insider Anthony D. Fassino sold 3,185 shares of the firm’s stock in a transaction dated Friday, August 30th. The shares were sold at an average price of $351.36, for a total transaction of $1,119,081.60. Following the transaction, the insider now directly owns 33,442 shares of the company’s stock, valued at $11,750,181.12. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Gerald Johnson acquired 100 shares of the firm’s stock in a transaction on Wednesday, September 4th. The stock was purchased at an average price of $338.59 per share, with a total value of $33,859.00. Following the purchase, the director now owns 2,842 shares in the company, valued at approximately $962,272.78. The trade was a 0.00 % increase in their position. The disclosure for this purchase can be found here. 0.33% of the stock is currently owned by company insiders.

Institutional Trading of Caterpillar

A number of hedge funds have recently bought and sold shares of the business. Thompson Investment Management Inc. purchased a new position in shares of Caterpillar in the 1st quarter worth about $27,000. Fairman Group LLC purchased a new position in Caterpillar in the first quarter valued at about $29,000. Bbjs Financial Advisors LLC bought a new position in shares of Caterpillar during the 2nd quarter valued at approximately $28,000. Financial Connections Group Inc. purchased a new stake in shares of Caterpillar during the 2nd quarter worth approximately $28,000. Finally, Fairscale Capital LLC bought a new stake in shares of Caterpillar in the 2nd quarter worth approximately $36,000. 70.98% of the stock is currently owned by institutional investors.

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.