Caterpillar (NYSE:CAT) Trading Down 1.2% – Here’s What Happened

Caterpillar Inc. (NYSE:CAT)’s share price fell 1.2% during trading on Tuesday . The stock traded as low as $385.73 and last traded at $385.89. 384,585 shares traded hands during mid-day trading, a decline of 85% from the average session volume of 2,631,286 shares. The stock had previously closed at $390.48.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on CAT. Morgan Stanley cut shares of Caterpillar from an “equal weight” rating to an “underweight” rating and lowered their target price for the stock from $349.00 to $332.00 in a research note on Monday, October 14th. StockNews.com lowered shares of Caterpillar from a “buy” rating to a “hold” rating in a report on Tuesday, September 24th. Evercore ISI lowered their price target on Caterpillar from $338.00 to $321.00 and set an “in-line” rating for the company in a research report on Monday, August 19th. Raymond James started coverage on Caterpillar in a report on Friday, June 28th. They issued a “market perform” rating on the stock. Finally, UBS Group lifted their target price on Caterpillar from $270.00 to $285.00 and gave the stock a “sell” rating in a report on Wednesday, August 7th. Three analysts have rated the stock with a sell rating, nine have given a hold rating and seven have assigned a buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $355.50.

Caterpillar Price Performance

The stock has a market capitalization of $188.57 billion, a price-to-earnings ratio of 17.41, a PEG ratio of 1.85 and a beta of 1.10. The company has a current ratio of 1.28, a quick ratio of 0.78 and a debt-to-equity ratio of 1.39. The stock has a 50-day moving average price of $366.90 and a 200 day moving average price of $350.61.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Tuesday, August 6th. The industrial products company reported $5.99 EPS for the quarter, beating analysts’ consensus estimates of $5.53 by $0.46. Caterpillar had a return on equity of 59.88% and a net margin of 16.58%. The business had revenue of $16.69 billion during the quarter, compared to analysts’ expectations of $16.91 billion. During the same period in the previous year, the business earned $5.55 earnings per share. The business’s revenue was down 3.6% compared to the same quarter last year. As a group, equities research analysts expect that Caterpillar Inc. will post 21.91 earnings per share for the current year.

Caterpillar Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 20th. Stockholders of record on Monday, October 21st will be paid a dividend of $1.41 per share. The ex-dividend date of this dividend is Monday, October 21st. This represents a $5.64 dividend on an annualized basis and a dividend yield of 1.46%. Caterpillar’s dividend payout ratio is currently 25.46%.

Insider Buying and Selling

In other news, insider Anthony D. Fassino sold 3,185 shares of the firm’s stock in a transaction that occurred on Friday, August 30th. The stock was sold at an average price of $351.36, for a total value of $1,119,081.60. Following the transaction, the insider now owns 33,442 shares in the company, valued at $11,750,181.12. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. In related news, insider Cheryl H. Johnson sold 2,975 shares of the business’s stock in a transaction dated Thursday, August 22nd. The shares were sold at an average price of $342.48, for a total transaction of $1,018,878.00. Following the transaction, the insider now directly owns 15,615 shares in the company, valued at approximately $5,347,825.20. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Anthony D. Fassino sold 3,185 shares of the stock in a transaction dated Friday, August 30th. The shares were sold at an average price of $351.36, for a total transaction of $1,119,081.60. Following the completion of the sale, the insider now owns 33,442 shares of the company’s stock, valued at approximately $11,750,181.12. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. 0.33% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Caterpillar

Several hedge funds and other institutional investors have recently made changes to their positions in CAT. Bbjs Financial Advisors LLC purchased a new stake in shares of Caterpillar in the second quarter valued at about $28,000. Financial Connections Group Inc. acquired a new position in Caterpillar in the 2nd quarter valued at about $28,000. Fairman Group LLC purchased a new stake in shares of Caterpillar in the 1st quarter valued at approximately $29,000. Fairscale Capital LLC acquired a new stake in shares of Caterpillar during the 2nd quarter worth approximately $36,000. Finally, POM Investment Strategies LLC raised its position in shares of Caterpillar by 2,160.0% during the 2nd quarter. POM Investment Strategies LLC now owns 113 shares of the industrial products company’s stock valued at $38,000 after buying an additional 108 shares during the period. Institutional investors and hedge funds own 70.98% of the company’s stock.

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.