Insider Selling: Caterpillar Inc. (NYSE:CAT) Insider Sells 2,161 Shares of Stock

Key Points

• Insider Jason Kaiser sold 2,161 shares of Caterpillar Inc. for approximately $902,649.70, resulting in a 20.02% decrease in his ownership of the stock.
• Caterpillar recently announced an increase in its quarterly dividend to $1.51 per share, up from the previous dividend of $1.41.
• The company's latest earnings report showed a net margin of 14.95%, but the earnings per share of $4.72 missed the consensus estimate of $4.88 by $0.16.

Caterpillar Inc. (NYSE:CAT - Get Free Report) insider Jason Kaiser sold 2,161 shares of Caterpillar stock in a transaction on Monday, August 11th. The stock was sold at an average price of $417.70, for a total value of $902,649.70. Following the sale, the insider owned 8,632 shares in the company, valued at $3,605,586.40. This trade represents a 20.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this link.

Caterpillar Stock Performance

Shares of NYSE:CAT traded down $10.09 during midday trading on Friday, reaching $407.41. 3,105,803 shares of the company traded hands, compared to its average volume of 3,164,488. Caterpillar Inc. has a 12 month low of $267.30 and a 12 month high of $441.15. The firm's fifty day moving average price is $399.63 and its two-hundred day moving average price is $356.18. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 1.50. The firm has a market capitalization of $190.86 billion, a price-to-earnings ratio of 20.72, a price-to-earnings-growth ratio of 2.49 and a beta of 1.40.

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

Caterpillar Increases Dividend

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

Institutional Investors Weigh In On Caterpillar

Hedge funds and other institutional investors have recently modified their holdings of the stock. Kilter Group LLC bought a new position in shares of Caterpillar during the second quarter valued at approximately $27,000. Mid American Wealth Advisory Group Inc. bought a new position in Caterpillar in the 2nd quarter worth $28,000. Family Legacy Financial Solutions LLC bought a new position in Caterpillar in the 2nd quarter worth $32,000. RiverPark Advisors LLC bought a new stake in shares of Caterpillar during the 2nd quarter valued at about $32,000. Finally, Harbor Asset Planning Inc. purchased a new position in shares of Caterpillar during the second quarter valued at about $34,000. Institutional investors own 70.98% of the company's stock.

Analysts Set New Price Targets

Several brokerages have issued reports on CAT. Bank of America boosted their target price on Caterpillar from $460.00 to $495.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Citigroup boosted their target price on Caterpillar from $460.00 to $500.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Baird R W upgraded Caterpillar from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 13th. JPMorgan Chase & Co. boosted their target price on Caterpillar from $475.00 to $520.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. Finally, Melius upgraded Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research note on Wednesday, July 9th. Seven analysts have rated the stock with a hold rating, ten have given a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $444.00.

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.