Caterpillar Inc. (NYSE:CAT) Given Average Recommendation of "Moderate Buy" by Analysts

Key Points

• Caterpillar Inc. has been given an average recommendation of "Moderate Buy" from analysts, with a target price averaging $450.87 based on 18 ratings firms' evaluations.
• Recent insider activity showed Jason Kaiser and Director Susan C. Schwab selling shares, indicating a 20% and 25% decrease in their stock ownership, respectively.
• Caterpillar recently increased its quarterly dividend to $1.51 per share, marking a rise from the previous dividend of $1.41.

Shares of Caterpillar Inc. (NYSE:CAT - Get Free Report) have received a consensus rating of "Moderate Buy" from the eighteen ratings firms that are currently covering the company, Marketbeat Ratings reports. Five investment analysts have rated the stock with a hold rating, eleven have assigned a buy rating and two have given a strong buy rating to the company. The average 12-month price target among brokerages that have covered the stock in the last year is $450.8667.

A number of equities analysts have issued reports on the company. Bank of America increased their target price on Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Barclays increased their target price on Caterpillar from $383.00 to $425.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 6th. Evercore ISI upgraded Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 target price for the company in a report on Tuesday. Truist Financial increased their target price on Caterpillar from $414.00 to $507.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Finally, Melius upgraded Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a report on Wednesday, July 9th.

Insider Activity

In other news, insider Jason Kaiser sold 2,161 shares of Caterpillar stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $417.70, for a total value of $902,649.70. Following the completion of the sale, the insider directly owned 8,632 shares in the company, valued at approximately $3,605,586.40. The trade was a 20.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Susan C. Schwab sold 2,324 shares of Caterpillar stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $410.00, for a total transaction of $952,840.00. Following the completion of the sale, the director owned 6,917 shares of the company's stock, valued at approximately $2,835,970. The trade was a 25.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 0.33% of the company's stock.

Institutional Trading of Caterpillar

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Pacific Point Advisors LLC acquired a new position in shares of Caterpillar during the fourth quarter valued at about $579,000. Brighton Jones LLC raised its holdings in shares of Caterpillar by 51.5% during the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock valued at $2,688,000 after purchasing an additional 2,519 shares during the period. Adage Capital Partners GP L.L.C. acquired a new position in shares of Caterpillar during the fourth quarter valued at about $26,129,000. Evercore Wealth Management LLC raised its holdings in shares of Caterpillar by 1.9% during the fourth quarter. Evercore Wealth Management LLC now owns 10,167 shares of the industrial products company's stock valued at $3,688,000 after purchasing an additional 194 shares during the period. Finally, Burling Wealth Partners LLC acquired a new position in shares of Caterpillar during the fourth quarter valued at about $352,000. Institutional investors own 70.98% of the company's stock.

Caterpillar Stock Down 0.8%

Shares of CAT opened at $417.4240 on Friday. The stock has a market cap of $195.55 billion, a price-to-earnings ratio of 21.23, a P/E/G ratio of 2.51 and a beta of 1.40. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 1.50. Caterpillar has a 12 month low of $267.30 and a 12 month high of $441.15. The company has a 50-day moving average price of $404.15 and a two-hundred day moving average price of $357.31.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.88 by ($0.16). Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.The firm had revenue of $16.57 billion for the quarter, compared to analyst estimates of $16.14 billion. During the same period in the prior year, the company posted $5.99 EPS. The firm's quarterly revenue was down .7% compared to the same quarter last year. Equities analysts predict that Caterpillar will post 19.86 EPS for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 20th. Stockholders of record on Monday, July 21st were paid a dividend of $1.51 per share. The ex-dividend date was Monday, July 21st. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.4%. This is a positive change from Caterpillar's previous quarterly dividend of $1.41. Caterpillar's dividend payout ratio (DPR) is currently 30.72%.

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.

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