The officers and directors of a company tend to have a unique inside view into the business, so when these insiders make purchases, investors are wise to take notice. Presumably the only reason for a company insider to choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. Within the 30 components of the Dow Jones Industrial Average, only thirteen companies have experienced such buying over the trailing six month period, one of which was Caterpillar Inc. (NYSE:CAT), where an investment totaling $102.9K was made by Director Eugene V. Fife. Click Here to Learn Which Other Twelve Dow Components Also Had Recent Insider Buying »
Fife bets big on CAT:
Eugene V. Fife
Fife's average cost works out to $102.87/share. In trading on Tuesday, bargain hunters could buy shares of Caterpillar Inc. (NYSE:CAT) and achieve a cost basis lower than Fife, with shares changing hands as low as $88.44 per share. It should be noted that Fife has collected $0.52/share in dividends since the time of their purchase, so they are currently down 13.5% on their purchase from a total return basis. Shares of Caterpillar Inc. were changing hands at $88.54 at last check, trading off about 0.1% on Tuesday. The chart below shows the one year performance of CAT shares, versus its 200 day moving average:
Looking at the chart above, CAT's low point in its 52 week range is $67.54 per share, with $116.95 as the 52 week high point — that compares with a last trade of $88.54.
The current annualized dividend paid by Caterpillar Inc. is $2.08/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 07/18/2012. Below is a long-term dividend history chart for CAT, which can be of good help in judging whether the most recent dividend with approx. 2.4% annualized yield is likely to continue.
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