Caterpillar Target of Unusually Large Options Trading (NYSE:CAT)

Caterpillar Inc. (NYSE:CAT) was the target of unusually large options trading on Thursday. Investors purchased 82,925 call options on the stock. This is an increase of 230% compared to the typical volume of 25,118 call options.

Caterpillar Stock Down 0.9 %

Caterpillar stock opened at $354.68 on Friday. The company has a debt-to-equity ratio of 1.25, a quick ratio of 0.87 and a current ratio of 1.35. The business’s 50-day simple moving average is $346.70 and its two-hundred day simple moving average is $297.78. The company has a market cap of $177.13 billion, a PE ratio of 17.61, a PEG ratio of 1.59 and a beta of 1.17. Caterpillar has a fifty-two week low of $204.04 and a fifty-two week high of $382.01.

Caterpillar (NYSE:CAT) last issued its earnings results on Monday, February 5th. The industrial products company reported $5.23 EPS for the quarter, topping analysts’ consensus estimates of $4.76 by $0.47. Caterpillar had a return on equity of 56.99% and a net margin of 15.41%. The firm had revenue of $17.07 billion for the quarter, compared to the consensus estimate of $17.06 billion. During the same quarter in the prior year, the business earned $3.86 earnings per share. The company’s revenue was up 2.8% compared to the same quarter last year. Equities analysts anticipate that Caterpillar will post 21.4 EPS for the current year.

Caterpillar Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, May 20th. Investors of record on Monday, April 22nd will be issued a $1.30 dividend. The ex-dividend date of this dividend is Friday, April 19th. This represents a $5.20 annualized dividend and a dividend yield of 1.47%. Caterpillar’s dividend payout ratio is presently 25.82%.

Wall Street Analyst Weigh In

A number of research firms recently commented on CAT. StockNews.com cut shares of Caterpillar from a “strong-buy” rating to a “buy” rating in a report on Tuesday, February 20th. Wells Fargo & Company boosted their target price on shares of Caterpillar from $290.00 to $325.00 and gave the company an “equal weight” rating in a report on Tuesday, February 6th. The Goldman Sachs Group boosted their target price on shares of Caterpillar from $357.00 to $408.00 and gave the company a “buy” rating in a report on Tuesday. Morgan Stanley initiated coverage on shares of Caterpillar in a report on Monday, January 8th. They set an “equal weight” rating and a $270.00 target price on the stock. Finally, Citigroup boosted their target price on shares of Caterpillar from $255.00 to $340.00 and gave the company a “neutral” rating in a report on Monday, February 12th. One investment analyst has rated the stock with a sell rating, nine have given a hold rating and nine have given a buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $307.56.

Insider Buying and Selling

In other news, CFO Andrew R. J. Bonfield sold 10,000 shares of Caterpillar stock in a transaction dated Thursday, January 25th. The stock was sold at an average price of $300.04, for a total value of $3,000,400.00. Following the completion of the transaction, the chief financial officer now directly owns 67,317 shares of the company’s stock, valued at approximately $20,197,792.68. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In other Caterpillar news, CFO Andrew R. J. Bonfield sold 10,000 shares of Caterpillar stock in a transaction dated Thursday, January 25th. The stock was sold at an average price of $300.04, for a total transaction of $3,000,400.00. Following the completion of the transaction, the chief financial officer now owns 67,317 shares in the company, valued at approximately $20,197,792.68. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Lange Bob De sold 21,194 shares of Caterpillar stock in a transaction dated Wednesday, February 7th. The shares were sold at an average price of $325.52, for a total value of $6,899,070.88. Following the transaction, the insider now owns 61,092 shares of the company’s stock, valued at approximately $19,886,667.84. The disclosure for this sale can be found here. Insiders sold a total of 45,769 shares of company stock valued at $14,509,306 in the last three months. Insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Southland Equity Partners LLC grew its stake in Caterpillar by 4.0% in the first quarter. Southland Equity Partners LLC now owns 784 shares of the industrial products company’s stock worth $287,000 after purchasing an additional 30 shares in the last quarter. Davis Investment Partners LLC lifted its holdings in Caterpillar by 2.1% in the first quarter. Davis Investment Partners LLC now owns 1,454 shares of the industrial products company’s stock worth $541,000 after acquiring an additional 30 shares during the last quarter. Exchange Capital Management Inc. lifted its holdings in Caterpillar by 3.3% in the first quarter. Exchange Capital Management Inc. now owns 1,016 shares of the industrial products company’s stock worth $372,000 after acquiring an additional 32 shares during the last quarter. McIlrath & Eck LLC lifted its holdings in Caterpillar by 4.4% in the fourth quarter. McIlrath & Eck LLC now owns 789 shares of the industrial products company’s stock worth $233,000 after acquiring an additional 33 shares during the last quarter. Finally, Versant Capital Management Inc lifted its holdings in Caterpillar by 7.4% in the first quarter. Versant Capital Management Inc now owns 480 shares of the industrial products company’s stock worth $176,000 after acquiring an additional 33 shares during the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

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.