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

Caterpillar Inc. (NYSE:CAT) was the recipient of some unusual options trading on Thursday. Traders purchased 82,925 call options on the stock. This represents an increase of approximately 230% compared to the average volume of 25,118 call options.

Caterpillar Price Performance

CAT stock opened at $354.68 on Friday. Caterpillar has a 52-week low of $204.04 and a 52-week high of $382.01. The stock’s fifty day simple moving average is $346.70 and its 200-day simple moving average is $297.78. The company has a quick ratio of 0.87, a current ratio of 1.35 and a debt-to-equity ratio of 1.25. The stock has a market capitalization of $177.13 billion, a price-to-earnings ratio of 17.61, a price-to-earnings-growth ratio of 1.59 and a beta of 1.17.

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

Caterpillar Dividend Announcement

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

Insider Activity at Caterpillar

In other Caterpillar news, insider Lange Bob De sold 21,194 shares of the company’s stock in a transaction dated Wednesday, February 7th. The stock was sold at an average price of $325.52, for a total transaction of $6,899,070.88. Following the sale, the insider now owns 61,092 shares in the company, valued at approximately $19,886,667.84. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In related news, CFO Andrew R. J. Bonfield sold 10,000 shares of the company’s stock in a transaction dated Friday, February 2nd. The stock was sold at an average price of $310.10, for a total value of $3,101,000.00. Following the completion of the sale, the chief financial officer now directly owns 57,317 shares of the company’s stock, valued at approximately $17,774,001.70. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, insider Lange Bob De sold 21,194 shares of the company’s 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 completion of the sale, the insider now directly owns 61,092 shares of the company’s stock, valued at $19,886,667.84. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 45,769 shares of company stock worth $14,509,306. 0.33% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the business. BCK Partners Inc. acquired a new stake in shares of Caterpillar during the 1st quarter worth approximately $2,580,000. Sei Investments Co. boosted its stake in Caterpillar by 17.3% during the 1st quarter. Sei Investments Co. now owns 65,643 shares of the industrial products company’s stock valued at $14,634,000 after purchasing an additional 9,695 shares in the last quarter. Dakota Wealth Management bought a new position in Caterpillar during the 1st quarter valued at $405,000. Mather Group LLC. boosted its stake in Caterpillar by 6.8% during the 1st quarter. Mather Group LLC. now owns 2,592 shares of the industrial products company’s stock valued at $577,000 after purchasing an additional 165 shares in the last quarter. Finally, NewEdge Advisors LLC boosted its stake in Caterpillar by 4.4% during the 1st quarter. NewEdge Advisors LLC now owns 49,705 shares of the industrial products company’s stock valued at $11,075,000 after purchasing an additional 2,076 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. Evercore ISI cut Caterpillar from an “outperform” rating to an “in-line” rating and upped their target price for the company from $321.00 to $338.00 in a research report on Tuesday, February 20th. TD Cowen increased their price objective on Caterpillar from $300.00 to $338.00 and gave the stock an “outperform” rating in a research report on Tuesday, February 6th. StockNews.com downgraded Caterpillar from a “strong-buy” rating to a “buy” rating in a research note on Tuesday, February 20th. Oppenheimer reissued a “market perform” rating on shares of Caterpillar in a research note on Thursday. Finally, Wells Fargo & Company raised their price objective on Caterpillar from $290.00 to $325.00 and gave the company an “equal weight” rating in a research note on Tuesday, February 6th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and nine have given a buy rating to the stock. According to MarketBeat, Caterpillar presently has a consensus rating of “Hold” and a consensus price target of $307.56.

Caterpillar Company Profile

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.