Insider Buying: Caterpillar (NYSE:CAT) Director Acquires $208,635.00 in Stock

Key Points

• Caterpillar director David Maclennan bought 350 shares at an average price of $596.10, a $208,635 purchase that increased his holdings by 4.16% to 8,773 shares.
• Caterpillar’s latest quarter showed EPS of $7.20, above estimates, while revenue rose 17.3% year over year to $20.68 billion, slightly below forecasts. The company also reported a record $78 billion backlog.
• Shares fell 0.9% to $599.80 in Friday trading. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $898.25; Caterpillar declared a quarterly dividend of $1.63 per share.

Caterpillar Inc. (NYSE:CAT - Get Free Report) Director David Maclennan acquired 350 shares of the business's stock in a transaction dated Thursday, November 12th. The stock was purchased at an average cost of $596.10 per share, with a total value of $208,635.00. Following the transaction, the director owned 8,773 shares of the company's stock, valued at approximately $5,229,585.30. The trade was a 4.16% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink.

Caterpillar Trading Down 0.9%

NYSE CAT traded down $5.48 during mid-day trading on Friday, reaching $599.80. 2,284,113 shares of the stock were exchanged, compared to its average volume of 2,917,331. Caterpillar Inc. has a 1-year low of $537.08 and a 1-year high of $1,073.46. The business's fifty day simple moving average is $744.62 and its 200 day simple moving average is $805.40. The stock has a market capitalization of $274.46 billion, a PE ratio of 23.53, a PEG ratio of 1.04 and a beta of 1.65. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.88 and a current ratio of 1.42.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, topping the consensus estimate of $7.06 by $0.14. Caterpillar had a net margin of 15.21% and a return on equity of 59.87%. The firm had revenue of $20.68 billion during the quarter, compared to analysts' expectations of $20.76 billion. During the same period in the previous year, the company earned $4.95 EPS. Caterpillar's revenue for the quarter was up 17.3% on a year-over-year basis. On average, research analysts anticipate that Caterpillar Inc. will post 27.38 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 26th will be paid a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend is Monday, October 26th. Caterpillar's dividend payout ratio (DPR) is presently 25.58%.

Key Stories Impacting Caterpillar

Here are a few of the latest stories about CAT:

• Positive Sentiment: Caterpillar ended the third quarter with a record $78 billion backlog, nearly double the year-earlier level. Strong orders across construction, mining and power generation offer revenue visibility, while capacity expansion and automation investments could help support growth. CAT's Record $78B Backlog Signals Strength
• Positive Sentiment: Investor Kevin Simpson reportedly bought more CAT shares, a favorable sentiment signal, though the article does not provide the rationale or size of the purchase. Trade tracker: Kevin Simpson buys more Caterpillar
• Neutral Sentiment: A Trefis article examines how much downside may remain, but the provided summary gives no forecast or specific price target. How Much Downside Is Left In Caterpillar Stock?

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on CAT. JPMorgan Chase & Co. dropped their price objective on shares of Caterpillar from $1,100.00 to $1,000.00 and set an "overweight" rating for the company in a research note on Friday, October 30th. Citigroup decreased their target price on shares of Caterpillar from $950.00 to $800.00 and set a "buy" rating on the stock in a research report on Friday, October 30th. Zacks Research downgraded shares of Caterpillar from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Royal Bank Of Canada dropped their price target on shares of Caterpillar from $897.00 to $722.00 and set a "sector perform" rating for the company in a research report on Friday, October 30th. Finally, Erste Group Bank downgraded shares of Caterpillar from a "buy" rating to a "hold" rating in a research note on Monday, July 27th. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $898.25.

Hedge Funds Weigh In On Caterpillar

A number of large investors have recently modified their holdings of CAT. Decker Retirement Planning Inc. grew its stake in Caterpillar by 440.0% during the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock worth $29,000 after buying an additional 22 shares during the period. Matrix Trust Co increased its position in shares of Caterpillar by 93.8% in the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock worth $33,000 after acquiring an additional 15 shares in the last quarter. Axiom Investment Management LLC purchased a new position in shares of Caterpillar in the 2nd quarter valued at $36,000. PFS Partners LLC raised its stake in shares of Caterpillar by 1,750.0% in the 3rd quarter. PFS Partners LLC now owns 37 shares of the industrial products company's stock valued at $30,000 after acquiring an additional 35 shares during the period. Finally, Tacita Capital Inc acquired a new position in shares of Caterpillar during the 2nd quarter valued at $47,000. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

About Caterpillar

Caterpillar Inc. is a global manufacturer of construction and mining equipment, engines, turbines, and related products and services. Its offerings include earthmoving and material-handling machines, diesel and natural gas engines, power-generation systems, and equipment and technologies used in mining and transportation. The company's products are commonly sold under the Cat brand. Caterpillar serves customers in markets around the world through a network of independent dealers. Its businesses also provide parts, maintenance, equipment rental, and other support services, as well as financing and insurance through its financial services operations.

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