Caterpillar (NYSE:CAT) Shares Down 1.8% – Here’s Why

Shares of Caterpillar Inc. (NYSE:CAT) fell 1.8% on Monday . The stock traded as low as $861.27 and last traded at $864.7150. 2,443,115 shares changed hands during trading, a decline of 16% from the average daily volume of 2,893,761 shares. The stock had previously closed at $880.28.

Wall Street Analyst Weigh In

CAT has been the topic of a number of research reports. Evercore restated an “outperform” rating and issued a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Wall Street Zen upgraded shares of Caterpillar from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. Daiwa Securities Group lifted their target price on shares of Caterpillar from $790.00 to $900.00 and gave the stock a “neutral” rating in a research note on Friday, May 1st. Zacks Research lowered shares of Caterpillar from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, July 14th. Finally, DA Davidson raised their price objective on shares of Caterpillar from $650.00 to $845.00 and gave the stock a “neutral” rating in a report on Monday, May 4th. Fifteen research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $980.57.

Caterpillar Trading Down 1.8%

The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The firm has a market cap of $398.28 billion, a P/E ratio of 43.04, a P/E/G ratio of 1.72 and a beta of 1.57. The firm has a 50 day simple moving average of $931.29 and a 200 day simple moving average of $794.97.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, beating the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm had revenue of $17.41 billion for the quarter, compared to analysts’ expectations of $16.53 billion. During the same period in the prior year, the business posted $4.25 earnings per share. The company’s revenue was up 22.2% on a year-over-year basis. On average, equities research analysts predict that Caterpillar Inc. will post 24.87 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be issued a dividend of $1.63 per share. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date of this dividend is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. Caterpillar’s payout ratio is currently 30.06%.

Insiders Place Their Bets

In other Caterpillar news, insider Denise C. Johnson sold 12,605 shares of the firm’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the transaction, the insider directly owned 49,825 shares of the company’s stock, valued at $45,236,615.75. This trade represents a 20.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the business’s stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the transaction, the chief financial officer owned 52,935 shares of the company’s stock, valued at $48,631,913.85. This trade represents a 22.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 95,773 shares of company stock worth $87,642,635. Company insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

A number of institutional investors have recently added to or reduced their stakes in the business. Diversified Trust Co. raised its holdings in shares of Caterpillar by 25.4% in the 2nd quarter. Diversified Trust Co. now owns 14,725 shares of the industrial products company’s stock valued at $15,681,000 after acquiring an additional 2,986 shares in the last quarter. Rosenberg Matthew Hamilton grew its holdings in shares of Caterpillar by 5.6% during the second quarter. Rosenberg Matthew Hamilton now owns 1,685 shares of the industrial products company’s stock worth $1,794,000 after purchasing an additional 89 shares in the last quarter. SLT Holdings LLC purchased a new position in shares of Caterpillar during the second quarter worth about $272,000. GRIMES & Co WEALTH MANAGEMENT LLC increased its position in shares of Caterpillar by 1.2% in the second quarter. GRIMES & Co WEALTH MANAGEMENT LLC now owns 5,291 shares of the industrial products company’s stock worth $5,635,000 after purchasing an additional 62 shares during the last quarter. Finally, True Blue Financial LLC purchased a new stake in Caterpillar in the second quarter valued at approximately $209,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off?highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.