Caterpillar (NYSE:CAT) Shares Gap Down – Here’s What Happened

Caterpillar Inc. (NYSE:CAT) shares gapped down before the market opened on Thursday . The stock had previously closed at $393.23, but opened at $373.50. Caterpillar shares last traded at $377.04, with a volume of 701,288 shares changing hands.

Analyst Ratings Changes

CAT has been the subject of several research analyst reports. Jefferies Financial Group raised their target price on Caterpillar from $455.00 to $475.00 and gave the company a “buy” rating in a research report on Friday, December 6th. UBS Group raised their target price on Caterpillar from $295.00 to $355.00 and gave the stock a “sell” rating in a research report on Tuesday. Truist Financial cut their price target on Caterpillar from $471.00 to $455.00 and set a “buy” rating for the company in a research note on Thursday, January 16th. Morgan Stanley lowered shares of Caterpillar from an “equal weight” rating to an “underweight” rating and lowered their price target for the company from $349.00 to $332.00 in a research report on Monday, October 14th. Finally, StockNews.com downgraded Caterpillar from a “buy” rating to a “hold” rating in a research report on Friday, January 17th. Three analysts have rated the stock with a sell rating, eight have given a hold rating and seven have assigned a buy rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $384.60.

Caterpillar Trading Down 4.0 %

The firm has a market capitalization of $182.27 billion, a PE ratio of 17.52, a P/E/G ratio of 1.97 and a beta of 1.13. The stock’s 50-day simple moving average is $381.68 and its 200-day simple moving average is $370.78. The company has a debt-to-equity ratio of 1.33, a quick ratio of 0.86 and a current ratio of 1.40.

Caterpillar (NYSE:CAT) last issued its earnings results on Thursday, January 30th. The industrial products company reported $5.14 EPS for the quarter, beating the consensus estimate of $4.97 by $0.17. Caterpillar had a return on equity of 59.09% and a net margin of 16.26%. As a group, sell-side analysts expect that Caterpillar Inc. will post 21.69 EPS for the current fiscal year.

Caterpillar Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 20th. Investors of record on Tuesday, January 21st will be issued a $1.41 dividend. This represents a $5.64 annualized dividend and a dividend yield of 1.49%. The ex-dividend date of this dividend is Tuesday, January 21st. Caterpillar’s payout ratio is currently 26.15%.

Insiders Place Their Bets

In related news, insider Cheryl H. Johnson sold 2,664 shares of the company’s stock in a transaction on Monday, November 4th. The shares were sold at an average price of $378.84, for a total value of $1,009,229.76. Following the completion of the transaction, the insider now owns 12,951 shares of the company’s stock, valued at approximately $4,906,356.84. This represents a 17.06 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO William E. Schaupp sold 968 shares of Caterpillar stock in a transaction that occurred on Friday, November 1st. The stock was sold at an average price of $380.98, for a total value of $368,788.64. Following the completion of the sale, the chief accounting officer now directly owns 1,686 shares in the company, valued at approximately $642,332.28. The trade was a 36.47 % decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 33,868 shares of company stock valued at $13,480,389. Insiders own 0.29% of the company’s stock.

Institutional Trading of Caterpillar

Large investors have recently made changes to their positions in the business. Ascent Group LLC lifted its position in shares of Caterpillar by 19.3% in the 2nd quarter. Ascent Group LLC now owns 953 shares of the industrial products company’s stock worth $317,000 after purchasing an additional 154 shares during the period. Advisory Alpha LLC boosted its holdings in Caterpillar by 17.1% in the second quarter. Advisory Alpha LLC now owns 4,081 shares of the industrial products company’s stock worth $1,360,000 after acquiring an additional 595 shares in the last quarter. SPC Financial Inc. increased its holdings in shares of Caterpillar by 72.5% during the second quarter. SPC Financial Inc. now owns 1,121 shares of the industrial products company’s stock valued at $373,000 after acquiring an additional 471 shares in the last quarter. 3Chopt Investment Partners LLC acquired a new stake in Caterpillar in the 2nd quarter worth approximately $289,000. Finally, Strategic Investment Solutions Inc. IL acquired a new position in Caterpillar during the 2nd quarter valued at approximately $114,000. 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.