Caterpillar (NYSE:CAT) Now Covered by Analysts at Citigroup

Citigroup initiated coverage on shares of Caterpillar (NYSE:CAT) in a research note issued to investors on Wednesday morning, MarketBeat Ratings reports. The firm issued a buy rating and a $380.00 price objective on the industrial products company’s stock.

Several other research firms have also weighed in on CAT. JPMorgan Chase & Co. increased their price objective on shares of Caterpillar from $385.00 to $435.00 and gave the stock an overweight rating in a research note on Tuesday, April 16th. HSBC increased their price objective on shares of Caterpillar from $330.00 to $360.00 and gave the stock a hold rating in a research note on Tuesday, April 30th. The Goldman Sachs Group increased their price objective on shares of Caterpillar from $357.00 to $408.00 and gave the stock a buy rating in a research note on Tuesday, April 16th. TD Cowen increased their price objective on shares of Caterpillar from $338.00 to $340.00 and gave the stock a buy rating in a research note on Friday, April 26th. Finally, Oppenheimer reiterated 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, nine have issued a hold rating and nine have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of Hold and a consensus target price of $329.63.

Caterpillar Stock Performance

Shares of Caterpillar stock opened at $333.10 on Wednesday. The firm has a market cap of $162.90 billion, a PE ratio of 15.04, a price-to-earnings-growth ratio of 1.68 and a beta of 1.14. The firm’s 50-day simple moving average is $340.31 and its 200-day simple moving average is $329.04. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.83 and a current ratio of 1.35. Caterpillar has a 1 year low of $223.76 and a 1 year high of $382.01.

Caterpillar (NYSE:CAT) last issued its earnings results on Thursday, April 25th. The industrial products company reported $5.60 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.12 by $0.48. The business had revenue of $15.80 billion for the quarter, compared to analyst estimates of $16.07 billion. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. Equities analysts forecast that Caterpillar will post 21.84 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd will be issued a $1.41 dividend. 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 dividend yield of 1.69%. Caterpillar’s dividend payout ratio (DPR) is 23.48%.

Caterpillar declared that its board has initiated a stock repurchase plan on Wednesday, June 12th that authorizes the company to repurchase $20.00 billion in shares. This repurchase authorization authorizes the industrial products company to repurchase up to 12.7% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s board of directors believes its stock is undervalued.

Insider Activity

In other news, insider Lange Bob De sold 21,847 shares of the stock in a transaction that occurred on Monday, May 13th. The shares were sold at an average price of $356.90, for a total value of $7,797,194.30. Following the completion of the transaction, the insider now directly owns 71,115 shares in the company, valued at $25,380,943.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In related news, insider Cheryl H. Johnson sold 1,508 shares of the stock in a transaction that occurred 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 completion of the sale, the insider now directly owns 20,023 shares of the company’s stock, valued at $6,807,820. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Lange Bob De sold 21,847 shares of the stock in a transaction that occurred on Monday, May 13th. The shares were sold at an average price of $356.90, for a total transaction of $7,797,194.30. Following the sale, the insider now directly owns 71,115 shares of the company’s stock, valued at $25,380,943.50. The disclosure for this sale can be found here. Insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Partnership Wealth Management LLC purchased a new stake in shares of Caterpillar in the 4th quarter valued at approximately $26,000. Richardson Financial Services Inc. purchased a new stake in shares of Caterpillar in the 4th quarter valued at approximately $27,000. Thompson Investment Management Inc. purchased a new stake in shares of Caterpillar in the 1st quarter valued at approximately $27,000. Fairman Group LLC purchased a new stake in shares of Caterpillar in the 1st quarter valued at approximately $29,000. Finally, Gilfoyle & Co LLC purchased a new stake in Caterpillar in the 4th quarter worth approximately $30,000. 70.98% of the stock is owned by institutional investors and hedge funds.

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.