Traders Buy Caterpillar (CAT) on Weakness

Investors bought shares of Caterpillar Inc. (NYSE:CAT) on weakness during trading on Friday. $225.56 million flowed into the stock on the tick-up and $174.54 million flowed out of the stock on the tick-down, for a money net flow of $51.02 million into the stock. Of all equities tracked, Caterpillar had the 18th highest net in-flow for the day. Caterpillar traded down ($2.60) for the day and closed at $135.92

Several research firms have recently issued reports on CAT. Royal Bank of Canada lifted their price objective on shares of Caterpillar to $166.00 and gave the company a “sector perform” rating in a research report on Tuesday, July 31st. Zacks Investment Research cut shares of Caterpillar from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 26th. BMO Capital Markets reduced their price target on shares of Caterpillar from $195.00 to $185.00 and set an “outperform” rating on the stock in a research report on Tuesday, July 31st. They noted that the move was a valuation call. Stifel Nicolaus restated a “hold” rating and issued a $174.00 price target (down previously from $176.00) on shares of Caterpillar in a research report on Monday, May 14th. Finally, Credit Suisse Group restated an “outperform” rating on shares of Caterpillar in a research report on Wednesday, April 25th. Thirteen research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of “Buy” and an average price target of $171.85.

The company has a current ratio of 1.37, a quick ratio of 0.97 and a debt-to-equity ratio of 1.59. The company has a market capitalization of $82.33 billion, a P/E ratio of 13.99, a price-to-earnings-growth ratio of 0.91 and a beta of 1.38.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Monday, July 30th. The industrial products company reported $2.97 EPS for the quarter, topping the 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%. Caterpillar’s quarterly revenue was up 23.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.49 earnings per share. analysts predict that Caterpillar Inc. will post 11.54 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 20th. Shareholders of record on Friday, July 20th will be paid a dividend of $0.86 per share. This represents a $3.44 annualized dividend and a yield of 2.53%. This is a positive change from Caterpillar’s previous quarterly dividend of $0.78. The ex-dividend date of this dividend is Thursday, July 19th. Caterpillar’s payout ratio is presently 50.00%.

In other news, Director David L. Calhoun acquired 5,000 shares of the company’s stock in a transaction on Monday, May 14th. The stock was bought at an average cost of $155.37 per share, with a total value of $776,850.00. Following the completion of the purchase, the director now directly owns 19,579 shares of the company’s stock, valued at $3,041,989.23. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.36% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of the company. Jennison Associates LLC boosted its stake in shares of Caterpillar by 5.4% during the second quarter. Jennison Associates LLC now owns 6,442,611 shares of the industrial products company’s stock valued at $874,069,000 after purchasing an additional 327,470 shares during the period. Schwab Charles Investment Management Inc. boosted its stake in shares of Caterpillar by 1.5% during the first quarter. Schwab Charles Investment Management Inc. now owns 2,380,679 shares of the industrial products company’s stock valued at $350,865,000 after purchasing an additional 34,141 shares during the period. Sumitomo Mitsui Trust Holdings Inc. boosted its stake in shares of Caterpillar by 7.0% during the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 2,239,504 shares of the industrial products company’s stock valued at $303,834,000 after purchasing an additional 145,707 shares during the period. Dimensional Fund Advisors LP boosted its stake in shares of Caterpillar by 7.6% during the second quarter. Dimensional Fund Advisors LP now owns 2,147,234 shares of the industrial products company’s stock valued at $291,325,000 after purchasing an additional 151,960 shares during the period. Finally, Prudential Financial Inc. boosted its stake in shares of Caterpillar by 99.6% during the first quarter. Prudential Financial Inc. now owns 1,990,874 shares of the industrial products company’s stock valued at $293,415,000 after purchasing an additional 993,438 shares during the period. 67.17% of the stock is owned by hedge funds and other institutional investors.

About Caterpillar

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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