Investors Buy Caterpillar, Inc. (NYSE:CAT) on Weakness on Insider Selling

Investors purchased shares of Caterpillar, Inc. (NYSE:CAT) on weakness during trading on Tuesday following insider selling activity. $108.34 million flowed into the stock on the tick-up and $74.15 million flowed out of the stock on the tick-down, for a money net flow of $34.19 million into the stock. Of all stocks tracked, Caterpillar had the 15th highest net in-flow for the day. Caterpillar traded down ($0.85) for the day and closed at $113.10Specifically, insider Suzette M. Long sold 13,859 shares of the company’s stock in a transaction that occurred on Friday, August 4th. The stock was sold at an average price of $114.30, for a total transaction of $1,584,083.70. Following the completion of the transaction, the insider now owns 18,188 shares of the company’s stock, valued at approximately $2,078,888.40. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Bradley M. Halverson sold 182,612 shares of the company’s stock in a transaction that occurred on Thursday, July 27th. The shares were sold at an average price of $114.05, for a total value of $20,826,898.60. The disclosure for this sale can be found here. In the last three months, insiders sold 201,471 shares of company stock valued at $22,979,332. 0.15% of the stock is currently owned by corporate insiders.

CAT has been the subject of a number of recent analyst reports. Bank of America Corporation raised Caterpillar from a “neutral” rating to a “buy” rating and upped their price target for the company from $105.00 to $120.00 in a research report on Thursday, May 11th. Stifel Nicolaus lowered their price target on Caterpillar from $111.00 to $95.00 and set a “hold” rating for the company in a research report on Wednesday, April 26th. Axiom Securities reissued a “sell” rating on shares of Caterpillar in a research report on Friday, June 16th. Vetr lowered Caterpillar from a “sell” rating to a “strong sell” rating and set a $86.90 target price for the company. in a research report on Tuesday, April 25th. Finally, Zacks Investment Research lowered Caterpillar from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, June 27th. Two research analysts have rated the stock with a sell rating, twelve have given a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company. Caterpillar presently has a consensus rating of “Hold” and an average price target of $107.15.

The stock has a market cap of $66.69 billion, a PE ratio of 630.45 and a beta of 1.25. The stock has a 50-day moving average price of $109.77 and a 200-day moving average price of $101.19.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Tuesday, July 25th. The industrial products company reported $1.49 EPS for the quarter, beating the consensus estimate of $1.26 by $0.23. The company had revenue of $11.33 billion for the quarter, compared to analyst estimates of $10.96 billion. Caterpillar had a net margin of 0.27% and a return on equity of 18.52%. The firm’s revenue was up 9.6% on a year-over-year basis. During the same period in the prior year, the company earned $1.09 earnings per share. Analysts predict that Caterpillar, Inc. will post $5.24 earnings per share for the current year.

The business also recently declared a quarterly dividend, which will be paid on Saturday, August 19th. Investors of record on Thursday, July 20th will be given a dividend of $0.78 per share. This represents a $3.12 annualized dividend and a dividend yield of 2.76%. The ex-dividend date is Tuesday, July 18th. This is an increase from Caterpillar’s previous quarterly dividend of $0.77. Caterpillar’s dividend payout ratio is 2,080.00%.

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in Caterpillar by 6.1% in the second quarter. Vanguard Group Inc. now owns 41,225,175 shares of the industrial products company’s stock worth $4,430,058,000 after buying an additional 2,377,623 shares during the last quarter. FMR LLC boosted its position in Caterpillar by 11.7% in the second quarter. FMR LLC now owns 19,613,661 shares of the industrial products company’s stock worth $2,107,684,000 after buying an additional 2,052,300 shares during the last quarter. Renaissance Technologies LLC bought a new position in Caterpillar during the first quarter worth $143,490,000. Morgan Stanley boosted its position in Caterpillar by 15.1% in the first quarter. Morgan Stanley now owns 10,398,677 shares of the industrial products company’s stock worth $964,579,000 after buying an additional 1,365,856 shares during the last quarter. Finally, Jennison Associates LLC bought a new position in Caterpillar during the second quarter worth $117,223,000. Institutional investors own 70.53% of the company’s stock.

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