Caterpillar (NYSE:CAT) Downgraded to “Hold” at StockNews.com

StockNews.com lowered shares of Caterpillar (NYSE:CAT) from a buy rating to a hold rating in a research report report published on Friday.

A number of other research firms have also recently weighed in on CAT. Citigroup assumed coverage on shares of Caterpillar in a research note on Wednesday, June 26th. They issued a buy rating and a $380.00 target price on the stock. TD Cowen upped their price objective on shares of Caterpillar from $338.00 to $340.00 and gave the stock a buy rating in a research note on Friday, April 26th. HSBC upped their price objective on shares of Caterpillar from $330.00 to $360.00 and gave the stock a hold rating in a research note on Tuesday, April 30th. The Goldman Sachs Group upped their price objective on shares of Caterpillar from $357.00 to $408.00 and gave the stock a buy rating in a research note on Tuesday, April 16th. Finally, Stifel Nicolaus cut shares of Caterpillar from a buy rating to a hold rating and upped their price objective for the stock from $293.00 to $350.00 in a research note on Friday, April 26th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and six have assigned a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of Hold and a consensus target price of $335.00.

Caterpillar Stock Performance

NYSE CAT opened at $320.85 on Friday. The stock has a market cap of $156.91 billion, a P/E ratio of 14.49, a PEG ratio of 1.72 and a beta of 1.12. The company’s 50-day simple moving average is $334.71 and its 200 day simple moving average is $337.24. Caterpillar has a twelve month low of $223.76 and a twelve month high of $382.01. The company has a quick ratio of 0.83, a current ratio of 1.35 and a debt-to-equity ratio of 1.41.

Caterpillar declared that its Board of Directors has authorized a stock buyback plan on Wednesday, June 12th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the industrial products company to purchase up to 12.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 20th. Investors of record on Monday, July 22nd will be issued a $1.41 dividend. This is a positive change from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 annualized dividend and a yield of 1.76%. The ex-dividend date of this dividend is Monday, July 22nd. Caterpillar’s dividend payout ratio is currently 25.46%.

Insider Activity at Caterpillar

In related news, insider Cheryl H. Johnson sold 1,508 shares of the stock in a transaction that occurred on Thursday, May 30th. The shares were sold at an average price of $340.00, for a total value of $512,720.00. Following the transaction, the insider now directly owns 20,023 shares in the company, valued at $6,807,820. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In related news, insider Cheryl H. Johnson sold 1,508 shares of the stock in a transaction that occurred on Thursday, May 30th. The shares were sold at an average price of $340.00, for a total value of $512,720.00. Following the transaction, the insider now directly owns 20,023 shares in the company, valued at $6,807,820. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Lange Bob De sold 21,847 shares of the stock in a transaction that occurred on Monday, May 13th. The shares were sold at an average price of $356.90, for a total transaction of $7,797,194.30. Following the completion of the transaction, the insider now owns 71,115 shares in the company, valued at $25,380,943.50. The disclosure for this sale can be found here. Insiders have sold 24,863 shares of company stock worth $8,837,714 over the last ninety days. Company insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Several hedge funds have recently bought and sold shares of the company. Hudock Inc. raised its holdings in Caterpillar by 1.8% in the second quarter. Hudock Inc. now owns 9,947 shares of the industrial products company’s stock worth $3,314,000 after purchasing an additional 176 shares during the period. Kornitzer Capital Management Inc. KS raised its holdings in Caterpillar by 28.3% in the second quarter. Kornitzer Capital Management Inc. KS now owns 1,322 shares of the industrial products company’s stock worth $440,000 after purchasing an additional 292 shares during the period. First Business Financial Services Inc. acquired a new stake in Caterpillar in the second quarter worth $222,000. National Bank of Canada FI raised its holdings in Caterpillar by 104.6% in the second quarter. National Bank of Canada FI now owns 391,428 shares of the industrial products company’s stock worth $128,768,000 after purchasing an additional 200,134 shares during the period. Finally, Hohimer Wealth Management LLC raised its holdings in Caterpillar by 163.8% in the second quarter. Hohimer Wealth Management LLC now owns 4,638 shares of the industrial products company’s stock worth $1,545,000 after purchasing an additional 2,880 shares during the period. 70.98% of the stock is currently owned by institutional investors and hedge funds.

About Caterpillar

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.