Caterpillar to buy $2.5 billion of its own stock
Caterpillar (NYSE:CAT) was up 1.13% today to $105.34 after announcing a stock repurchase of $2.5 billion.
Société Générale will manage the transaction. In January the company repurchased $1.7 billion in stock.
"Repurchasing an additional $2.5 billion of Caterpillar stock in the third quarter of 2014 will bring our total 2014 stock repurchases to $4.2 billion," said Caterpillar Chairman and CEO Doug Oberhelman in a news release.
"This, combined with the 17 percent increase in our quarterly dividend announced in June, clearly shows how we are taking advantage of our strong cash position to deliver superior returns to stockholders."
Last week Caterpillar's stock tumbled when it missed revenue expectations.
Year to date Caterpillar is up 15%.