Caterpillar Inc. (NYSE:CAT) declared a quarterly dividend on Wednesday, October 10th, RTT News reports. Shareholders of record on Monday, October 22nd will be paid a dividend of 0.86 per share by the industrial products company on Tuesday, November 20th. This represents a $3.44 annualized dividend and a yield of 2.38%.
Caterpillar has raised its dividend payment by an average of 6.0% per year over the last three years and has increased its dividend annually for the last 8 consecutive years. Caterpillar has a payout ratio of 29.6% indicating that its dividend is sufficiently covered by earnings. Analysts expect Caterpillar to earn $12.93 per share next year, which means the company should continue to be able to cover its $3.44 annual dividend with an expected future payout ratio of 26.6%.
Caterpillar stock traded down $4.63 during mid-day trading on Wednesday, hitting $144.83. The company’s stock had a trading volume of 390,607 shares, compared to its average volume of 5,100,468. The company has a market capitalization of $90.63 billion, a PE ratio of 21.48, a price-to-earnings-growth ratio of 0.84 and a beta of 1.37. The company has a quick ratio of 0.97, a current ratio of 1.37 and a debt-to-equity ratio of 1.59. Caterpillar has a one year low of $127.27 and a one year high of $173.24.
Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Monday, July 30th. The industrial products company reported $2.97 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.73 by $0.24. Caterpillar had a return on equity of 40.60% and a net margin of 6.12%. The business had revenue of $14.01 billion for the quarter, compared to the consensus estimate of $14.09 billion. During the same quarter in the prior year, the company earned $1.49 EPS. The business’s revenue was up 23.7% compared to the same quarter last year. As a group, research analysts anticipate that Caterpillar will post 11.65 earnings per share for the current year.
CAT has been the subject of a number of analyst reports. Stifel Nicolaus decreased their price objective on Caterpillar from $174.00 to $168.00 and set a “hold” rating for the company in a research note on Tuesday, August 7th. UBS Group set a $185.00 price objective on Caterpillar and gave the stock a “buy” rating in a research note on Wednesday, September 5th. Zacks Investment Research upgraded Caterpillar from a “hold” rating to a “buy” rating and set a $155.00 price objective for the company in a research note on Tuesday, July 17th. Argus decreased their price objective on Caterpillar from $185.00 to $165.00 and set a “buy” rating for the company in a research note on Monday, August 13th. Finally, Morgan Stanley upped their price objective on Caterpillar from $185.00 to $187.00 and gave the stock a “buy” rating in a research note on Tuesday, July 31st. One equities research analyst has rated the stock with a sell rating, twelve have assigned a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $171.08.
In related news, insider Denise C. Johnson sold 35,051 shares of Caterpillar stock in a transaction on Tuesday, October 2nd. The shares were sold at an average price of $154.18, for a total value of $5,404,163.18. Following the completion of the sale, the insider now owns 22,826 shares of the company’s stock, valued at approximately $3,519,312.68. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.36% of the stock is currently owned by insiders.
Caterpillar Inc manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives for construction, resource, and energy and transportation industries. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact truck and multi-terrain loaders, forestry excavators, feller bunchers, harvesters, knuckleboom loaders, motorgraders, pipelayers, road reclaimers, site prep tractors, skidders, skid steer loaders, telehandlers, track-type loaders, wheel excavators, and track-type tractors.
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