Caterpillar (NYSE:CAT) Upgraded to Buy at StockNews.com

StockNews.com upgraded shares of Caterpillar (NYSE:CAT) from a hold rating to a buy rating in a research note issued to investors on Tuesday morning.

Other analysts have also recently issued reports about the stock. Oppenheimer restated a market perform rating on shares of Caterpillar in a research note on Thursday, April 18th. 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 report on Tuesday, April 30th. TD Cowen upped their target price on shares of Caterpillar from $338.00 to $340.00 and gave the stock a buy rating in a report on Friday, April 26th. Raymond James assumed coverage on shares of Caterpillar in a report on Friday, June 28th. They set a market perform rating for the company. Finally, JPMorgan Chase & Co. upped their price objective on shares of Caterpillar from $385.00 to $435.00 and gave the company an overweight rating in a report on Tuesday, April 16th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of Hold and an average price target of $329.63.

Caterpillar Stock Down 0.5 %

Shares of Caterpillar stock opened at $356.03 on Tuesday. The firm’s 50 day moving average price is $337.90 and its 200-day moving average price is $333.37. 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 has a 52-week low of $223.76 and a 52-week high of $382.01. The company has a market cap of $174.12 billion, a P/E ratio of 16.07, a PEG ratio of 1.86 and a beta of 1.12.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, April 25th. The industrial products company reported $5.60 earnings per share for the quarter, topping the consensus estimate of $5.12 by $0.48. The company had revenue of $15.80 billion for the quarter, compared to the consensus estimate of $16.07 billion. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. On average, sell-side analysts predict that Caterpillar will post 21.74 EPS for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd will be given a dividend of $1.41 per share. This represents a $5.64 annualized dividend and a dividend yield of 1.58%. The ex-dividend date is Monday, July 22nd. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s dividend payout ratio is currently 25.46%.

Caterpillar announced that its Board of Directors has initiated a stock buyback program on Wednesday, June 12th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the industrial products company to buy up to 12.7% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Insider Transactions at Caterpillar

In other news, insider Cheryl H. Johnson sold 1,508 shares of the stock in a transaction dated Thursday, May 30th. The shares were sold at an average price of $340.00, for a total transaction of $512,720.00. Following the sale, the insider now owns 20,023 shares of the company’s stock, valued at $6,807,820. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, insider Cheryl H. Johnson sold 1,508 shares of the firm’s 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 sale, the insider now owns 20,023 shares of the company’s stock, valued at $6,807,820. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director David Maclennan bought 500 shares of Caterpillar stock in a transaction that occurred on Friday, May 3rd. The stock was purchased at an average cost of $337.39 per share, for a total transaction of $168,695.00. Following the acquisition, the director now owns 5,738 shares of the company’s stock, valued at $1,935,943.82. The disclosure for this purchase can be found here. Over the last quarter, insiders have sold 24,863 shares of company stock valued at $8,837,714. 0.33% of the stock is currently owned by corporate insiders.

Institutional Trading of Caterpillar

Hedge funds have recently added to or reduced their stakes in the company. Thompson Investment Management Inc. purchased a new position in Caterpillar in the first quarter valued at approximately $27,000. Fairman Group LLC purchased a new position in Caterpillar in the first quarter valued at approximately $29,000. Bbjs Financial Advisors LLC purchased a new position in Caterpillar in the second quarter valued at approximately $28,000. Partnership Wealth Management LLC purchased a new position in Caterpillar in the fourth quarter valued at approximately $26,000. Finally, Richardson Financial Services Inc. purchased a new position in Caterpillar in the fourth quarter valued at approximately $27,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

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.