Traders Buy Shares of Caterpillar, Inc. (CAT) on Weakness After Insider Selling

Traders purchased shares of Caterpillar, Inc. (NYSE:CAT) on weakness during trading hours on Tuesday after an insider sold shares in the company. $198.26 million flowed into the stock on the tick-up and $81.93 million flowed out of the stock on the tick-down, for a money net flow of $116.33 million into the stock. Of all equities tracked, Caterpillar had the 3rd highest net in-flow for the day. Caterpillar traded down ($0.69) for the day and closed at $135.80Specifically, insider Lange Bob De sold 1,572 shares of the firm’s stock in a transaction on Thursday, October 26th. The stock was sold at an average price of $137.58, for a total transaction of $216,275.76. Following the sale, the insider now owns 11,096 shares in the company, valued at $1,526,587.68. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Suzette M. Long sold 13,859 shares of the firm’s stock in a transaction on Friday, August 4th. The stock was sold at an average price of $114.30, for a total value of $1,584,083.70. Following the sale, the insider now owns 18,188 shares in the company, valued at approximately $2,078,888.40. The disclosure for this sale can be found here. 0.14% of the stock is currently owned by corporate insiders.

Several equities research analysts have recently issued reports on the company. Tigress Financial restated a “buy” rating on shares of Caterpillar in a report on Monday. BMO Capital Markets raised their price objective on Caterpillar from $150.00 to $165.00 and gave the stock an “outperform” rating in a report on Thursday, October 26th. Argus raised their price objective on Caterpillar from $130.00 to $155.00 and gave the stock a “buy” rating in a report on Thursday, October 26th. Citigroup Inc. raised their price objective on Caterpillar from $133.00 to $145.00 and gave the stock a “neutral” rating in a report on Wednesday, October 25th. Finally, Credit Suisse Group raised their price objective on Caterpillar from $146.00 to $155.00 and gave the stock an “outperform” rating in a report on Wednesday, October 25th. Two analysts have rated the stock with a sell rating, thirteen have given a hold rating and fourteen have issued a buy rating to the company. Caterpillar presently has a consensus rating of “Hold” and an average price target of $133.70.

The stock has a market capitalization of $80.25 billion, a price-to-earnings ratio of 758.66 and a beta of 1.25. The company has a 50-day moving average price of $127.67 and a 200-day moving average price of $112.68.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Tuesday, October 24th. The industrial products company reported $1.95 EPS for the quarter, beating the Zacks’ consensus estimate of $1.27 by $0.68. The business had revenue of $11.41 billion during the quarter, compared to analyst estimates of $10.69 billion. Caterpillar had a net margin of 2.09% and a return on equity of 23.22%. The firm’s revenue for the quarter was up 24.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.85 earnings per share. Analysts anticipate that Caterpillar, Inc. will post $6.36 EPS for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Monday, November 20th. Investors of record on Monday, October 23rd will be paid a $0.78 dividend. The ex-dividend date of this dividend is Friday, October 20th. This represents a $3.12 dividend on an annualized basis and a yield of 2.30%. Caterpillar’s payout ratio is currently 216.67%.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Lincoln National Corp increased its stake in Caterpillar by 7.2% in the third quarter. Lincoln National Corp now owns 8,220 shares of the industrial products company’s stock valued at $1,025,000 after acquiring an additional 553 shares during the period. Mitchell Capital Management Co. bought a new stake in Caterpillar in the third quarter valued at about $215,000. First Merchants Corp increased its stake in Caterpillar by 502.7% in the third quarter. First Merchants Corp now owns 19,497 shares of the industrial products company’s stock valued at $2,431,000 after acquiring an additional 16,262 shares during the period. State Board of Administration of Florida Retirement System increased its stake in Caterpillar by 1.4% in the third quarter. State Board of Administration of Florida Retirement System now owns 837,539 shares of the industrial products company’s stock valued at $104,449,000 after acquiring an additional 11,410 shares during the period. Finally, Csenge Advisory Group bought a new stake in Caterpillar in the third quarter valued at about $967,000. 69.34% of the stock is currently owned by institutional investors and hedge funds.

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