Caterpillar Sees Unusually Large Options Volume (NYSE:CAT)

Caterpillar Inc. (NYSE:CAT) was the target of some unusual options trading on Tuesday. Investors purchased 28,236 call options on the company. This represents an increase of 50% compared to the average volume of 18,832 call options.

Caterpillar Stock Performance

NYSE CAT traded up $14.62 on Tuesday, reaching $582.68. 2,217,332 shares of the company’s stock traded hands, compared to its average volume of 2,779,164. The stock has a 50 day moving average price of $532.35 and a 200-day moving average price of $446.34. The firm has a market cap of $272.68 billion, a price-to-earnings ratio of 29.91, a P/E/G ratio of 3.33 and a beta of 1.57. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.81 and a current ratio of 1.38. Caterpillar has a fifty-two week low of $267.30 and a fifty-two week high of $596.21.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Wednesday, October 29th. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.52 by $0.43. The business had revenue of $17.64 billion during the quarter, compared to analysts’ expectations of $16.72 billion. Caterpillar had a return on equity of 47.16% and a net margin of 14.34%.The company’s revenue for the quarter was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $5.17 EPS. Equities research analysts predict that Caterpillar will post 19.86 EPS for the current fiscal year.

Caterpillar Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, November 20th. Stockholders of record on Monday, October 20th were paid a dividend of $1.51 per share. The ex-dividend date of this dividend was Monday, October 20th. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.0%. Caterpillar’s dividend payout ratio (DPR) is presently 31.01%.

Insider Transactions at Caterpillar

In other Caterpillar news, Chairman Donald J. Umpleby III sold 17,166 shares of the stock in a transaction dated Friday, October 10th. The shares were sold at an average price of $505.29, for a total transaction of $8,673,808.14. Following the completion of the sale, the chairman directly owned 448,173 shares of the company’s stock, valued at approximately $226,457,335.17. This represents a 3.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Lange Bob De sold 14,638 shares of Caterpillar stock in a transaction that occurred on Wednesday, November 5th. The stock was sold at an average price of $562.36, for a total transaction of $8,231,825.68. Following the completion of the transaction, the insider directly owned 80,209 shares in the company, valued at approximately $45,106,333.24. The trade was a 15.43% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 69,061 shares of company stock worth $36,234,966. Company insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

A number of hedge funds have recently added to or reduced their stakes in the company. Kilter Group LLC acquired a new position in shares of Caterpillar in the second quarter worth about $27,000. Mid American Wealth Advisory Group Inc. acquired a new position in Caterpillar in the 2nd quarter worth about $28,000. Marquette Asset Management LLC boosted its position in Caterpillar by 1,060.0% during the third quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 53 shares in the last quarter. Compass Financial Services Inc grew its holdings in Caterpillar by 49.2% in the first quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company’s stock valued at $31,000 after purchasing an additional 31 shares during the period. Finally, Family Legacy Financial Solutions LLC purchased a new stake in shares of Caterpillar in the second quarter valued at approximately $32,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several analysts have recently commented on CAT shares. Robert W. Baird increased their price objective on Caterpillar from $612.00 to $680.00 and gave the company an “outperform” rating in a report on Thursday, October 30th. JPMorgan Chase & Co. raised their price target on Caterpillar from $650.00 to $730.00 and gave the stock an “overweight” rating in a report on Thursday, October 30th. Weiss Ratings restated a “buy (b)” rating on shares of Caterpillar in a research note on Monday. Wells Fargo & Company started coverage on shares of Caterpillar in a research report on Thursday, November 13th. They issued an “overweight” rating and a $675.00 price objective for the company. Finally, Barclays boosted their target price on shares of Caterpillar from $485.00 to $555.00 and gave the stock an “equal weight” rating in a research report on Thursday, October 30th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Caterpillar presently has an average rating of “Moderate Buy” and an average target price of $610.32.

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.