Caterpillar Inc. (NYSE:CAT) Receives Consensus Recommendation of “Hold” from Brokerages

Shares of Caterpillar Inc. (NYSE:CAT) have earned a consensus recommendation of “Hold” from the eighteen brokerages that are covering the company, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have issued a buy rating on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $336.31.

A number of analysts have recently commented on the stock. StockNews.com upgraded shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Friday. Citigroup assumed coverage on shares of Caterpillar in a report on Wednesday, June 26th. They set a “buy” rating and a $380.00 target price on the stock. Barclays upped their price target 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. 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, UBS Group upped their price target on shares of Caterpillar from $270.00 to $285.00 and gave the stock a “sell” rating in a research note on Wednesday, August 7th.

Insider Activity

In other Caterpillar news, Director Gerald Johnson purchased 100 shares of Caterpillar stock in a transaction dated Wednesday, September 4th. The stock was purchased at an average price of $338.59 per share, with a total value of $33,859.00. Following the transaction, the director now directly owns 2,842 shares of the company’s stock, valued at $962,272.78. The purchase was disclosed in a document filed with the SEC, which is available through this link. In other Caterpillar news, Director Gerald Johnson purchased 100 shares of Caterpillar stock in a transaction dated Wednesday, September 4th. The stock was purchased at an average price of $338.59 per share, with a total value of $33,859.00. Following the transaction, the director now directly owns 2,842 shares of the company’s stock, valued at $962,272.78. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, insider Cheryl H. Johnson sold 1,508 shares of the company’s stock in a transaction dated Tuesday, July 16th. The shares were sold at an average price of $350.00, for a total transaction of $527,800.00. Following the sale, the insider now directly owns 18,515 shares of the company’s stock, valued at approximately $6,480,250. The disclosure for this sale can be found here. Insiders sold 7,668 shares of company stock valued at $2,665,760 in the last quarter. 0.33% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Caterpillar

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CAT. Norges Bank purchased a new stake in Caterpillar in the 4th quarter worth approximately $1,660,560,000. Capital Wealth Planning LLC increased its holdings in Caterpillar by 27,495.2% in the 4th quarter. Capital Wealth Planning LLC now owns 1,182,453 shares of the industrial products company’s stock worth $349,616,000 after acquiring an additional 1,178,168 shares in the last quarter. Canada Pension Plan Investment Board increased its holdings in Caterpillar by 306.9% in the 1st quarter. Canada Pension Plan Investment Board now owns 407,677 shares of the industrial products company’s stock worth $149,385,000 after acquiring an additional 307,479 shares in the last quarter. Altshuler Shaham Ltd increased its holdings in Caterpillar by 3,319.7% in the 2nd quarter. Altshuler Shaham Ltd now owns 275,011 shares of the industrial products company’s stock worth $91,606,000 after acquiring an additional 266,969 shares in the last quarter. Finally, Swedbank AB purchased a new stake in Caterpillar in the 1st quarter worth approximately $97,042,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Stock Up 1.4 %

Shares of Caterpillar stock opened at $339.59 on Friday. The company has a current ratio of 1.28, a quick ratio of 0.78 and a debt-to-equity ratio of 1.39. The company’s fifty day simple moving average is $340.36 and its two-hundred day simple moving average is $343.69. The company has a market cap of $166.08 billion, a P/E ratio of 15.33, a PEG ratio of 1.54 and a beta of 1.10. Caterpillar has a 12-month low of $223.76 and a 12-month high of $382.01.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.53 by $0.46. The business had revenue of $16.69 billion for the quarter, compared to the consensus estimate of $16.91 billion. Caterpillar had a net margin of 16.58% and a return on equity of 59.88%. The company’s quarterly revenue was down 3.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $5.55 EPS. Research analysts anticipate that Caterpillar will post 21.87 EPS for the current year.

Caterpillar declared that its board has initiated a stock buyback plan on Wednesday, June 12th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the industrial products company to reacquire up to 12.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board believes its shares are undervalued.

Caterpillar Company Profile

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.