Caterpillar (NYSE:CAT) Releases Quarterly Earnings Results, Beats Estimates By $0.48 EPS

Caterpillar (NYSE:CAT) issued its earnings results on Thursday. The industrial products company reported $5.60 earnings per share for the quarter, topping the consensus estimate of $5.12 by $0.48, reports. Caterpillar had a return on equity of 58.61% and a net margin of 16.79%. The business had revenue of $15.80 billion for the quarter, compared to analysts’ expectations of $16.07 billion.

Caterpillar Stock Up 1.6 %

NYSE CAT traded up $5.38 during trading hours on Friday, hitting $343.38. 3,324,630 shares of the company were exchanged, compared to its average volume of 2,414,735. The company has a 50 day moving average of $350.10 and a two-hundred day moving average of $300.99. The company has a quick ratio of 0.87, a current ratio of 1.35 and a debt-to-equity ratio of 1.41. The firm has a market cap of $171.48 billion, a price-to-earnings ratio of 15.50, a PEG ratio of 1.53 and a beta of 1.17. Caterpillar has a 52-week low of $204.04 and a 52-week high of $382.01.

Caterpillar Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, May 20th. Shareholders of record on Monday, April 22nd will be paid a $1.30 dividend. The ex-dividend date of this dividend is Friday, April 19th. This represents a $5.20 annualized dividend and a dividend yield of 1.51%. Caterpillar’s dividend payout ratio (DPR) is 23.48%.

Insider Activity

In related news, CFO Andrew R. J. Bonfield sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, February 2nd. The shares were sold at an average price of $310.10, for a total value of $3,101,000.00. Following the sale, the chief financial officer now owns 57,317 shares of the company’s stock, valued at $17,774,001.70. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In other news, insider Anthony D. Fassino sold 4,575 shares of the company’s stock in a transaction dated Wednesday, February 28th. The stock was sold at an average price of $329.80, for a total transaction of $1,508,835.00. Following the completion of the transaction, the insider now directly owns 23,474 shares of the company’s stock, valued at approximately $7,741,725.20. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of the firm’s stock in a transaction dated Friday, February 2nd. The stock was sold at an average price of $310.10, for a total value of $3,101,000.00. Following the sale, the chief financial officer now directly owns 57,317 shares in the company, valued at approximately $17,774,001.70. The disclosure for this sale can be found here. In the last quarter, insiders sold 35,769 shares of company stock worth $11,508,906. 0.33% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Caterpillar

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

Analysts Set New Price Targets

A number of equities analysts have weighed in on CAT shares. TD Cowen boosted their price objective on Caterpillar from $338.00 to $340.00 and gave the stock a “buy” rating in a research note on Friday. Oppenheimer reissued a “market perform” rating on shares of Caterpillar in a research report on Thursday, April 18th. The Goldman Sachs Group upped their price objective on shares of Caterpillar from $357.00 to $408.00 and gave the company a “buy” rating in a report on Tuesday, April 16th. Truist Financial began coverage on shares of Caterpillar in a report on Thursday, March 14th. They issued a “buy” rating and a $390.00 target price on the stock. Finally, Morgan Stanley began coverage on shares of Caterpillar in a research report on Monday, January 8th. They set an “equal weight” rating and a $270.00 price target on the stock. One investment analyst has rated the stock with a sell rating, ten have given a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $310.83.

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.