Caterpillar (NYSE:CAT) Director Sells $952,840.00 in Stock

Key Points

• Caterpillar Director Susan Schwab sold 2,324 shares of stock for approximately $952,840, resulting in a 25.15% decrease in her ownership.
• The company announced a quarterly dividend increase to $1.51 per share, with a yield of 1.5%, effective from August 20th.
• Caterpillar's recent earnings report showed an EPS of $4.72, missing estimates, although revenue surpassed expectations at $16.57 billion.

Caterpillar Inc. (NYSE:CAT - Get Free Report) Director Susan Schwab sold 2,324 shares of the firm's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $410.00, for a total transaction of $952,840.00. Following the completion of the transaction, the director directly owned 6,917 shares of the company's stock, valued at approximately $2,835,970. This trade represents a 25.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website.

Caterpillar Price Performance

Shares of Caterpillar stock traded up $1.9830 on Tuesday, hitting $414.6230. 1,966,268 shares of the company traded hands, compared to its average volume of 2,758,992. The company has a market cap of $194.24 billion, a P/E ratio of 21.11, a P/E/G ratio of 2.43 and a beta of 1.40. The firm's 50-day simple moving average is $400.72 and its 200 day simple moving average is $356.07. Caterpillar Inc. has a 12-month low of $267.30 and a 12-month high of $441.15. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 1.50.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16). The firm had revenue of $16.57 billion during the quarter, compared to the consensus estimate of $16.14 billion. Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.Caterpillar's revenue was down .7% on a year-over-year basis. During the same period last year, the business earned $5.99 EPS. Analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 20th. Shareholders of record on Monday, July 21st will be issued a $1.51 dividend. This represents a $6.04 annualized dividend and a yield of 1.5%. This is a boost from Caterpillar's previous quarterly dividend of $1.41. The ex-dividend date of this dividend is Monday, July 21st. Caterpillar's dividend payout ratio is presently 30.72%.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on CAT shares. Melius Research upgraded shares of Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 target price for the company in a research report on Wednesday, July 9th. Barclays increased their price objective on shares of Caterpillar from $383.00 to $425.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 6th. Bank of America raised their price target on shares of Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Baird R W upgraded shares of Caterpillar from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 13th. Finally, Robert W. Baird raised their price target on shares of Caterpillar from $395.00 to $422.00 and gave the stock an "outperform" rating in a research report on Friday, June 20th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $450.87.

Hedge Funds Weigh In On Caterpillar

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Kilter Group LLC acquired a new stake in shares of Caterpillar during the second quarter worth $27,000. Mid American Wealth Advisory Group Inc. acquired a new stake in shares of Caterpillar during the second quarter valued at $28,000. Compass Financial Services Inc boosted its stake in Caterpillar by 49.2% in the 1st quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company's stock worth $31,000 after buying an additional 31 shares during the last quarter. Family Legacy Financial Solutions LLC acquired a new stake in Caterpillar in the 2nd quarter worth about $32,000. Finally, RiverPark Advisors LLC acquired a new position in shares of Caterpillar in the 2nd quarter valued at about $32,000. 70.98% of the stock is 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.

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