NEW YORK (TheStreet) -- Shares of Caterpillar (CAT) closed up by 0.09% to $87.92 in Wednesday's trading session on reports that the company invested in Yard Club, a San Francisco startup that allows contractors to easily rent machinery to one another, CNBC reports.
Earlier this month, construction giant Caterpillar put in an undisclosed amount to a new round of funding, according to CNBC.
"This is about making the process easier and expanding the contractors renters can connect with," Yard Club's CEO and founder Colin Evan told CNBC.
From the partnership, Caterpillar hopes to reach more customers. "The Cat dealer will use this tool as another avenue to strengthen customer relationships by increasing the utilization rates of heavy equipment and lowering the total cost of equipment ownership," company VP Phil Kelliher said in a statement.
The company's partnership with Yard Club is one of the ways it's embracing new technology before it disrupts existing businesses like heavy machinery sales, CNBC said.
TheStreet Ratings team rates CATERPILLAR INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CATERPILLAR INC (CAT) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, notable return on equity, attractive valuation levels, expanding profit margins and growth in earnings per share. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."