Investors Buy Shares of Caterpillar Inc. (CAT) on Weakness
Traders bought shares of Caterpillar Inc. (NYSE:CAT) on weakness during trading hours on Wednesday. $116.53 million flowed into the stock on the tick-up and $71.98 million flowed out of the stock on the tick-down, for a money net flow of $44.55 million into the stock. Of all stocks tracked, Caterpillar had the 10th highest net in-flow for the day. Caterpillar traded down ($0.11) for the day and closed at $79.69
Several brokerages have recently issued reports on CAT. Credit Suisse Group AG reaffirmed a “buy” rating and issued a $87.00 price target on shares of Caterpillar in a research report on Wednesday. Zacks Investment Research raised Caterpillar from a “sell” rating to a “hold” rating in a research report on Tuesday. Vetr downgraded Caterpillar from a “buy” rating to a “hold” rating and set a $80.38 price target on the stock. in a research report on Thursday, June 23rd. Jefferies Group reaffirmed a “hold” rating and issued a $69.00 price target on shares of Caterpillar in a research report on Tuesday, June 21st. Finally, Citigroup Inc. reaffirmed a “neutral” rating and issued a $75.00 price target on shares of Caterpillar in a research report on Tuesday, May 31st. Four analysts have rated the stock with a sell rating, sixteen have given a hold rating and seven have issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average price target of $70.16.
The firm has a market capitalization of $46.53 billion and a P/E ratio of 41.92. The company’s 50 day moving average is $75.31 and its 200 day moving average is $71.36.
Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Friday, April 22nd. The company reported $0.67 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.68 by $0.01. During the same period in the prior year, the company earned $1.72 EPS. The firm had revenue of $9.46 billion for the quarter, compared to analysts’ expectations of $9.59 billion. Caterpillar’s revenue was down 25.5% on a year-over-year basis. On average, equities analysts forecast that Caterpillar Inc. will post $3.52 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Saturday, August 20th. Stockholders of record on Wednesday, July 20th will be issued a dividend of $0.77 per share. This represents a $3.08 dividend on an annualized basis and a dividend yield of 3.86%. The ex-dividend date of this dividend is Monday, July 18th.
In other news, CFO Bradley M. Halverson sold 878 shares of Caterpillar stock in a transaction dated Tuesday, May 3rd. The shares were sold at an average price of $76.85, for a total transaction of $67,474.30. Following the completion of the transaction, the chief financial officer now directly owns 12,051 shares in the company, valued at $926,119.35. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Dennis A. Muilenburg purchased 1,128 shares of the business’s stock in a transaction that occurred on Monday, May 9th. The shares were purchased at an average price of $71.01 per share, for a total transaction of $80,099.28. Following the completion of the acquisition, the director now owns 7,628 shares of the company’s stock, valued at approximately $541,664.28. The disclosure for this purchase can be found here.
A number of hedge funds and institutional investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP boosted its position in Caterpillar by 61.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,543,333 shares of the company’s stock valued at $240,813,000 after buying an additional 1,346,344 shares during the period. Harris Associates L P boosted its position in Caterpillar by 5.6% in the fourth quarter. Harris Associates L P now owns 17,099,572 shares of the company’s stock valued at $1,162,087,000 after buying an additional 907,268 shares during the period. RidgeWorth Capital Management LLC boosted its position in Caterpillar by 53,430.5% in the fourth quarter. RidgeWorth Capital Management LLC now owns 702,856 shares of the company’s stock valued at $47,766,000 after buying an additional 701,543 shares during the period. Alps Advisors Inc. purchased a new position in Caterpillar during the fourth quarter valued at $20,269,000. Finally, RiverFront Investment Group LLC purchased a new position in Caterpillar during the fourth quarter valued at $15,968,000.
Caterpillar Inc is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its three product segments: Resource Industries, Construction Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment.
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