IRVING, Texas - Caterpillar Inc. (NYSE: NYSE:CAT), a leading manufacturer of construction and mining equipment, announced today its decision to delist its common stock from Euronext Paris due to low trading volume and the associated costs and administrative requirements. The delisting has been approved by the Board of Directors of Euronext Paris S.A. and is set to take place on May 28, 2024.
The company also revealed plans to withdraw its shares from the SIX Swiss Exchange by the end of 2024. Following these delistings, Caterpillar’s shares will continue to be traded on the New York Stock Exchange (NYSE), which is the company’s primary listing exchange.
Caterpillar is providing holders of its shares traded on Euronext Paris two options: they can either keep their shares and trade them on the NYSE after the delisting or participate in a voluntary sales facility to sell their shares on the NYSE. The sales facility will be available from May 3, 2024, to May 16, 2024, with Société Générale acting as the centralizing agent. Sales will commence on May 23, 2024, at the prevailing market price. The company will cover the centralization, brokerage fees, and any applicable foreign exchange commission for the sales.
Shareholders are advised to consult their investment advisors before deciding to participate in the voluntary sales facility. The final trading day for Caterpillar’s shares on Euronext Paris will be May 27, 2024.
Caterpillar, with 2023 sales and revenues of $67.1 billion, has been a major player in its industry for nearly a century. It operates through segments including Construction Industries, Resource Industries, and Energy & Transportation, and also provides financing and related services through its Financial Products segment.
InvestingPro Insights
As Caterpillar Inc. (NYSE: CAT) prepares to streamline its market presence by delisting from Euronext Paris and the SIX Swiss Exchange, the company's financial health and strategic moves remain a focal point for investors. According to data from InvestingPro, Caterpillar boasts a robust market cap of $174.65 billion, reflecting its significant standing in the industry. The company's P/E ratio is currently at 15.69, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 14.86, indicating a potentially attractive valuation relative to near-term earnings growth.
InvestingPro Tips highlight that Caterpillar has been a consistent performer with a history of rewarding its shareholders. Notably, the company has raised its dividend for 10 consecutive years and has maintained dividend payments for an impressive 54 consecutive years. This commitment to shareholder returns is coupled with a dividend yield of 1.51% as of the latest data, and a dividend growth rate of 8.33% over the last twelve months. Caterpillar's strategic share buybacks, as indicated by management's aggressive repurchasing, further underscore its confidence in the company's value proposition.
For investors looking to delve deeper into Caterpillar's financials and strategic analysis, there are additional InvestingPro Tips available. These include insights on earnings revisions, industry positioning, cash flow sustainability, debt levels, and profitability projections. For instance, 9 analysts have recently revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's performance. Caterpillar is also recognized as a prominent player in the Machinery industry, which aligns with its strategic focus on core markets. To access these insights and more, investors can explore the full range of tips on InvestingPro's Caterpillar page. Additionally, for those interested in an InvestingPro subscription, using the coupon code PRONEWS24 will grant an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
With the company's last twelve months' revenue at $67.0 billion and a growth rate of 8.59%, Caterpillar's financial robustness is evident. The company's strategic delistings point towards a concentrated effort to optimize its operations and focus on the most impactful exchanges for its shareholders.
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