Investors Buy Shares of Caterpillar (CAT) on Weakness

Investors purchased shares of Caterpillar Inc. (NYSE:CAT) on weakness during trading 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

A number of research firms recently issued reports on CAT. ValuEngine raised shares of Caterpillar from a “strong sell” rating to a “sell” rating in a research note on Thursday, November 1st. Stifel Nicolaus dropped their price target on shares of Caterpillar from $168.00 to $142.00 and set a “hold” rating on the stock in a research note on Monday, October 29th. Daiwa Capital Markets set a $120.00 price target on shares of Caterpillar and gave the company a “hold” rating in a research note on Thursday, October 25th. DZ Bank raised shares of Caterpillar to a “hold” rating and dropped their price target for the company from $127.00 to $119.00 in a research note on Wednesday, October 24th. Finally, UBS Group raised shares of Caterpillar from a “sell” rating to a “hold” rating in a research note on Thursday, October 25th. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating, fifteen have assigned a buy rating and two have assigned a strong buy rating to the company. Caterpillar has a consensus rating of “Buy” and an average target price of $158.55.

The company has a quick ratio of 1.02, a current ratio of 1.48 and a debt-to-equity ratio of 1.60. The firm has a market cap of $79.72 billion, a price-to-earnings ratio of 18.45, a price-to-earnings-growth ratio of 0.74 and a beta of 1.58.

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

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 20th. Stockholders of record on Monday, October 22nd will be issued a dividend of $0.86 per share. The ex-dividend date is Friday, October 19th. This represents a $3.44 annualized dividend and a dividend yield of 2.71%. Caterpillar’s dividend payout ratio is presently 50.00%.

In related news, insider Lange Bob De purchased 1,080 shares of Caterpillar stock in a transaction dated 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 acquisition, the insider now directly owns 11,310 shares in the company, valued at $1,307,209.80. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, insider Denise C. Johnson sold 35,051 shares of Caterpillar 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 transaction, 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. 0.36% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Global Retirement Partners LLC increased its position in shares of 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 purchasing an additional 360 shares during the last quarter. Private Capital Group LLC increased its position in shares of Caterpillar by 10.7% during the 2nd quarter. Private Capital Group LLC now owns 3,759 shares of the industrial products company’s stock worth $509,000 after purchasing an additional 362 shares during the last quarter. Courier Capital LLC increased its position in shares of Caterpillar by 8.0% during the 2nd quarter. Courier Capital LLC now owns 4,992 shares of the industrial products company’s stock worth $677,000 after purchasing an additional 371 shares during the last quarter. Segall Bryant & Hamill LLC increased its position in shares of Caterpillar by 1.1% during the 2nd quarter. Segall Bryant & Hamill LLC now owns 34,837 shares of the industrial products company’s stock worth $4,726,000 after purchasing an additional 372 shares during the last quarter. Finally, Financial Advocates Investment Management increased its position in shares of Caterpillar by 6.2% during the 2nd quarter. Financial Advocates Investment Management now owns 6,379 shares of the industrial products company’s stock worth $869,000 after purchasing an additional 374 shares during the last quarter. Institutional investors and hedge funds own 66.56% of the company’s stock.

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About Caterpillar (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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