Donald J. Umpleby III Sells 17,168 Shares of Caterpillar (NYSE:CAT) Stock

Key Points

• Caterpillar Inc. Chairman Donald Umpleby III sold 17,168 shares of the company's stock for approximately $7.09 million, resulting in a 3.44% decrease in his position.
• The company recently reported earnings of $4.72 per share, missing analyst expectations, while quarterly revenue was $16.57 billion, slightly above projections.
• Caterpillar has announced an increase in its dividend to $1.51 per share, marking an annualized dividend of $6.04 with a yield of 1.5%.

Caterpillar Inc. (NYSE:CAT - Get Free Report) Chairman Donald J. Umpleby III sold 17,168 shares of the stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $412.87, for a total value of $7,088,152.16. Following the completion of the transaction, the chairman owned 482,505 shares of the company's stock, valued at $199,211,839.35. The trade was a 3.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink.

Caterpillar Price Performance

Shares of NYSE CAT traded up $2.87 during trading on Friday, hitting $423.09. 1,843,217 shares of the company were exchanged, compared to its average volume of 2,684,954. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.34 and a quick ratio of 0.81. Caterpillar Inc. has a 1 year low of $267.30 and a 1 year high of $441.15. The company has a market cap of $198.21 billion, a price-to-earnings ratio of 21.52, a PEG ratio of 2.57 and a beta of 1.41. The firm's fifty day moving average price is $417.05 and its 200 day moving average price is $362.54.

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 company had revenue of $16.57 billion during the quarter, compared to analysts' expectations of $16.14 billion. Caterpillar had a net margin of 14.95% and a return on equity of 48.95%. The business's revenue for the quarter was down .7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $5.99 EPS. On average, sell-side analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 20th. Stockholders of record on Monday, July 21st were given a dividend of $1.51 per share. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date was Monday, July 21st. This is a positive change from Caterpillar's previous quarterly dividend of $1.41. Caterpillar's payout ratio is 30.72%.

Hedge Funds Weigh In On Caterpillar

A number of institutional investors have recently modified their holdings of CAT. Kilter Group LLC purchased a new stake in Caterpillar in the 2nd quarter worth approximately $27,000. Mid American Wealth Advisory Group Inc. acquired a new stake in shares of Caterpillar during the second quarter worth $28,000. Compass Financial Services Inc grew its position in shares of Caterpillar by 49.2% in the first quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company's stock valued at $31,000 after purchasing an additional 31 shares during the period. Family Legacy Financial Solutions LLC acquired a new position in Caterpillar in the second quarter valued at $32,000. Finally, RiverPark Advisors LLC purchased a new position in Caterpillar during the second quarter worth about $32,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on CAT shares. Melius upgraded Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a report on Wednesday, July 9th. Evercore ISI upgraded Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 target price on the stock in a research report on Tuesday, August 19th. Robert W. Baird dropped their price target on Caterpillar from $500.00 to $495.00 and set an "outperform" rating for the company in a research report on Friday, August 29th. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Caterpillar in a research note on Monday, July 14th. Finally, Oppenheimer lowered their price objective on shares of Caterpillar from $493.00 to $480.00 and set an "outperform" rating on the stock in a research note on Friday, August 29th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $457.20.

Caterpillar Company Profile

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.