Caterpillar (NYSE:CAT) Downgraded to “Hold” at StockNews.com

StockNews.com downgraded shares of Caterpillar (NYSE:CAT) from a buy rating to a hold rating in a research note released on Tuesday.

Other analysts have also issued reports about the stock. Barclays raised their price objective on shares of Caterpillar from $315.00 to $335.00 and gave the stock an equal weight rating in a report on Wednesday, August 7th. Truist Financial reaffirmed a buy rating and issued a $399.00 price target (up from $390.00) on shares of Caterpillar in a research note on Wednesday, August 7th. Bank of America dropped their target price on shares of Caterpillar from $385.00 to $376.00 and set a buy rating on the stock in a report on Wednesday, August 7th. UBS Group increased 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. Finally, Evercore ISI cut their price objective on shares of Caterpillar from $338.00 to $321.00 and set an in-line rating on the stock in a report on Monday, August 19th. Two investment analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, Caterpillar currently has an average rating of Hold and an average price target of $336.31.

Caterpillar Price Performance

Shares of CAT stock opened at $391.05 on Tuesday. The company has a debt-to-equity ratio of 1.39, a quick ratio of 0.78 and a current ratio of 1.28. Caterpillar has a fifty-two week low of $223.76 and a fifty-two week high of $397.22. The firm has a market cap of $191.24 billion, a P/E ratio of 17.62, a P/E/G ratio of 1.73 and a beta of 1.10. The business’s 50 day moving average price is $345.11 and its 200-day moving average price is $345.68.

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

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

Insiders Place Their Bets

In other news, Director Gerald Johnson purchased 100 shares of the company’s stock in a transaction dated Wednesday, September 4th. The shares were purchased at an average cost of $338.59 per share, for a total transaction of $33,859.00. Following the purchase, the director now directly owns 2,842 shares in the company, valued at approximately $962,272.78. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In other news, insider Anthony D. Fassino sold 3,185 shares of the stock in a transaction that occurred on Friday, August 30th. The shares were sold at an average price of $351.36, for a total value 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 document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Gerald Johnson bought 100 shares of the business’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 directly owns 2,842 shares of the company’s stock, 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 valued at $2,665,760. Company insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Thompson Investment Management Inc. bought a new position in Caterpillar in the 1st quarter worth $27,000. Fairman Group LLC bought a new position in shares of Caterpillar in the first quarter worth about $29,000. Bbjs Financial Advisors LLC purchased a new position in shares of Caterpillar during the 2nd quarter valued at about $28,000. Financial Connections Group Inc. bought a new position in shares of Caterpillar during the 2nd quarter valued at approximately $28,000. Finally, Richardson Financial Services Inc. purchased a new stake in Caterpillar in the 4th quarter worth approximately $27,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

About Caterpillar

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.