NEW YORK (TheStreet) -- Caterpillar (CAT) shares are up 1.2% to $105.44 on Tuesday after announcing an accelerated $2.5 billion stock repurchase plan.
The heavy machinery maker entered into an agreement with Societe Generale (SCGLY) to buy back 22 million of its own shares which would be valued at $2.31 billion based on the stock's opening price today.
The company expects to complete the repurchase agreement in September.
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Caterpillar shares are trading on heavy volume today with 3.3 million shares changing hands so far, on track to surpass its three month daily average of 3.5 million shares.
TheStreet Ratings team rates CATERPILLAR INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CATERPILLAR INC (CAT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels, growth in earnings per share and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
Highlights from the analysis by TheStreet Ratings Team goes as follows: