Traders Buy Shares of Caterpillar (CAT) on Weakness

Investors bought shares of Caterpillar Inc. (NYSE:CAT) on weakness during trading on Friday. $273.47 million flowed into the stock on the tick-up and $200.15 million flowed out of the stock on the tick-down, for a money net flow of $73.32 million into the stock. Of all companies tracked, Caterpillar had the 14th highest net in-flow for the day. Caterpillar traded down ($3.62) for the day and closed at $131.32

Several equities analysts have recently weighed in on the stock. Citigroup upgraded shares of Caterpillar to an “outperform” rating in a research note on Friday, September 21st. OTR Global cut shares of Caterpillar to a “positive” rating in a research note on Friday, September 21st. Macquarie set a $130.00 price objective on shares of Caterpillar and gave the stock a “sell” rating in a research note on Tuesday, September 25th. Robert W. Baird upgraded shares of Caterpillar from a “neutral” rating to an “outperform” rating and set a $158.00 price objective on the stock in a research note on Thursday, September 20th. Finally, Zacks Investment Research cut shares of Caterpillar from a “buy” rating to a “hold” rating in a research note on Monday, October 8th. Two investment analysts have rated the stock with a sell rating, ten have given a hold rating, sixteen have assigned a buy rating and two have assigned a strong buy rating to the company’s stock. Caterpillar has a consensus rating of “Buy” and an average price target of $171.44.

The firm has a market capitalization of $84.00 billion, a PE ratio of 19.28, a P/E/G ratio of 0.78 and a beta of 1.38. The company has a debt-to-equity ratio of 1.59, a quick ratio of 0.97 and a current ratio of 1.37.

Caterpillar (NYSE:CAT) last released its earnings results on Monday, July 30th. The industrial products company reported $2.97 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $2.73 by $0.24. The company had revenue of $14.01 billion during the quarter, compared to analyst estimates of $14.09 billion. Caterpillar had a net margin of 6.12% and a return on equity of 40.60%. The firm’s quarterly revenue was up 23.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.49 EPS. On average, analysts anticipate that Caterpillar Inc. will post 11.65 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, November 20th. Shareholders of record on Monday, October 22nd will be issued a dividend of $0.86 per share. This represents a $3.44 dividend on an annualized basis and a yield of 2.62%. The ex-dividend date is Friday, October 19th. Caterpillar’s dividend payout ratio (DPR) is currently 50.00%.

In other Caterpillar news, insider Denise C. Johnson sold 35,051 shares of the stock in a transaction that occurred on Tuesday, October 2nd. The shares were sold at an average price of $154.18, for a total transaction of $5,404,163.18. Following the completion of the sale, the insider now directly owns 22,826 shares of the company’s stock, valued at approximately $3,519,312.68. The sale was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 0.36% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in CAT. Financial Gravity Wealth Inc. purchased a new stake in Caterpillar during the 1st quarter valued at approximately $459,000. GSA Capital Partners LLP purchased a new stake in Caterpillar during the 1st quarter valued at approximately $623,000. Atlantic Trust Group LLC grew its holdings in Caterpillar by 17.4% during the 1st quarter. Atlantic Trust Group LLC now owns 41,731 shares of the industrial products company’s stock valued at $6,151,000 after buying an additional 6,180 shares in the last quarter. M Holdings Securities Inc. purchased a new position in shares of Caterpillar in the first quarter valued at $342,000. Finally, Summit Trail Advisors LLC grew its holdings in shares of Caterpillar by 15,223.3% in the first quarter. Summit Trail Advisors LLC now owns 444,377 shares of the industrial products company’s stock valued at $444,000 after purchasing an additional 441,477 shares in the last quarter. 66.63% of the stock is owned by institutional investors and hedge funds.

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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