Caterpillar (NYSE:CAT) Hits New 12-Month High Following Analyst Upgrade

by · The Markets Daily

Shares of Caterpillar Inc. (NYSE:CAT – Get Free Report) hit a new 52-week high during mid-day trading on Wednesday after Citigroup raised their price target on the stock from $670.00 to $690.00. Citigroup currently has a buy rating on the stock. Caterpillar traded as high as $609.42 and last traded at $615.1190, with a volume of 1129354 shares changing hands. The stock had previously closed at $594.36.

Several other research analysts also recently commented on the company. Morgan Stanley lifted their price target on Caterpillar from $380.00 to $395.00 and gave the stock an “underweight” rating in a research report on Wednesday. Barclays increased their price objective on shares of Caterpillar from $485.00 to $555.00 and gave the company an “equal weight” rating in a research note on Thursday, October 30th. Royal Bank Of Canada began coverage on shares of Caterpillar in a research note on Wednesday, October 22nd. They issued a “sector perform” rating and a $560.00 target price on the stock. Robert W. Baird raised their price target on shares of Caterpillar from $612.00 to $680.00 and gave the stock an “outperform” rating in a research note on Thursday, October 30th. Finally, DA Davidson upped their price objective on Caterpillar from $408.00 to $569.00 and gave the company a “neutral” rating in a research note on Monday, November 3rd. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $612.16.

Get Our Latest Stock Report on CAT

Insider Buying and Selling at Caterpillar

In related news, insider Jason Kaiser sold 10,707 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $563.60, for a total value of $6,034,465.20. Following the completion of the sale, the insider owned 8,649 shares of the company’s stock, valued at $4,874,576.40. This trade represents a 55.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of the business’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $571.44, for a total value of $5,714,400.00. Following the sale, the chief financial officer owned 55,460 shares of the company’s stock, valued at approximately $31,692,062.40. The trade was a 15.28% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 79,061 shares of company stock worth $41,949,366 over the last quarter. Corporate insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Kilter Group LLC bought a new stake in shares of Caterpillar in the second quarter valued at about $27,000. Mid American Wealth Advisory Group Inc. bought a new position in Caterpillar in the 2nd quarter valued at approximately $28,000. Marquette Asset Management LLC boosted its position in Caterpillar by 1,060.0% in the third quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock valued at $28,000 after buying an additional 53 shares in the last quarter. Compass Financial Services Inc boosted its holdings in shares of Caterpillar by 49.2% during the 1st quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company’s stock valued at $31,000 after acquiring an additional 31 shares in the last quarter. Finally, Family Legacy Financial Solutions LLC bought a new stake in Caterpillar during the 2nd quarter worth $32,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Trading Up 3.8%

The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.86 and a current ratio of 1.38. The firm has a market cap of $288.59 billion, a price-to-earnings ratio of 31.61, a PEG ratio of 2.81 and a beta of 1.57. The business has a fifty day simple moving average of $547.27 and a 200-day simple moving average of $456.77.

Caterpillar (NYSE:CAT – Get Free Report) last released its quarterly earnings results on Wednesday, October 29th. The industrial products company reported $4.95 earnings per share for the quarter, topping the consensus estimate of $4.52 by $0.43. The company had revenue of $17.64 billion for the quarter, compared to analysts’ expectations of $16.72 billion. Caterpillar had a return on equity of 47.16% and a net margin of 14.34%.The business’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the business posted $5.17 earnings per share. As a group, equities analysts forecast that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, November 20th. Shareholders of record on Monday, October 20th were given a $1.51 dividend. This represents a $6.04 annualized dividend and a yield of 1.0%. The ex-dividend date was Monday, October 20th. Caterpillar’s dividend payout ratio is 31.01%.

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.

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