Bank of America Increases Caterpillar (NYSE:CAT) Price Target to $434.00

by · The Markets Daily

Caterpillar (NYSE:CAT – Get Free Report) had its target price hoisted by equities research analysts at Bank of America from $376.00 to $434.00 in a report released on Monday, Benzinga reports. The firm presently has a “buy” rating on the industrial products company’s stock. Bank of America‘s target price points to a potential upside of 10.60% from the company’s previous close.

CAT has been the topic of a number of other research reports. UBS Group upped their target price on shares of Caterpillar from $270.00 to $285.00 and gave the company a “sell” rating in a research report on Wednesday, August 7th. Barclays upped their target price on shares of Caterpillar from $315.00 to $335.00 and gave the stock an “equal weight” rating in a research note on Wednesday, August 7th. Citigroup began coverage on shares of Caterpillar in a research note on Wednesday, June 26th. They issued a “buy” rating and a $380.00 price target on the stock. Evercore ISI dropped their price target on shares of Caterpillar from $338.00 to $321.00 and set an “in-line” rating on the stock in a research note on Monday, August 19th. Finally, StockNews.com downgraded Caterpillar from a “buy” rating to a “hold” rating in a report on Tuesday, September 24th. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $339.94.

Get Our Latest Stock Analysis on Caterpillar

Caterpillar Stock Up 0.3 %

NYSE:CAT opened at $392.40 on Monday. Caterpillar has a fifty-two week low of $223.76 and a fifty-two week high of $397.22. The stock has a market capitalization of $191.90 billion, a P/E ratio of 17.72, a P/E/G ratio of 1.73 and a beta of 1.10. The company has a debt-to-equity ratio of 1.39, a quick ratio of 0.78 and a current ratio of 1.28. The company’s 50-day simple moving average is $348.50 and its 200-day simple moving average is $347.14.

Caterpillar (NYSE:CAT – Get Free Report) last announced its quarterly earnings data on Tuesday, August 6th. The industrial products company reported $5.99 EPS for the quarter, beating the consensus estimate of $5.53 by $0.46. The business had revenue of $16.69 billion during the quarter, compared to analysts’ expectations of $16.91 billion. Caterpillar had a net margin of 16.58% and a return on equity of 59.88%. The business’s quarterly revenue was down 3.6% compared to the same quarter last year. During the same period in the previous year, the business posted $5.55 EPS. On average, equities analysts anticipate that Caterpillar will post 21.91 earnings per share for the current fiscal year.

Caterpillar announced that its board has initiated a stock repurchase program on Wednesday, June 12th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the industrial products company to buy up to 12.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its stock is undervalued.

Insider Transactions at Caterpillar

In related news, Director Gerald Johnson bought 100 shares of the company’s stock in a transaction that occurred on Wednesday, September 4th. The shares were acquired at an average price of $338.59 per share, with a total value of $33,859.00. Following the completion of the transaction, the director now owns 2,842 shares of the company’s stock, valued at approximately $962,272.78. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. In related news, insider Anthony D. Fassino sold 3,185 shares of the company’s stock in a transaction dated Friday, August 30th. The shares were sold at an average price of $351.36, for a total transaction of $1,119,081.60. Following the transaction, the insider now owns 33,442 shares in the company, valued at approximately $11,750,181.12. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Gerald Johnson bought 100 shares of the business’s stock in a transaction on Wednesday, September 4th. The shares were acquired at an average price of $338.59 per share, for a total transaction of $33,859.00. Following the completion of the transaction, the director now owns 2,842 shares in the company, valued at approximately $962,272.78. The disclosure for this purchase can be found here. In the last quarter, insiders sold 7,668 shares of company stock worth $2,665,760. 0.33% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Caterpillar

Several hedge funds have recently added to or reduced their stakes in CAT. Jacobs & Co. CA increased its position in Caterpillar by 0.5% during the 3rd quarter. Jacobs & Co. CA now owns 40,231 shares of the industrial products company’s stock worth $15,735,000 after buying an additional 215 shares during the period. Centaurus Financial Inc. boosted its stake in shares of Caterpillar by 83.5% during the second quarter. Centaurus Financial Inc. now owns 4,535 shares of the industrial products company’s stock valued at $1,511,000 after purchasing an additional 2,063 shares in the last quarter. Anchor Investment Management LLC boosted its stake in shares of Caterpillar by 3.9% during the second quarter. Anchor Investment Management LLC now owns 12,941 shares of the industrial products company’s stock valued at $4,311,000 after purchasing an additional 489 shares in the last quarter. Verity & Verity LLC acquired a new stake in shares of Caterpillar during the second quarter valued at about $330,000. Finally, Newbridge Financial Services Group Inc. lifted its stake in shares of Caterpillar by 48.0% in the second quarter. Newbridge Financial Services Group Inc. now owns 3,330 shares of the industrial products company’s stock worth $1,109,000 after acquiring an additional 1,080 shares during the period. Institutional investors and hedge funds own 70.98% of the company’s stock.

About Caterpillar

(Get Free Report)

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.

See Also