Caterpillar Inc. (NYSE:CAT) Short Interest Update

Key Points

• Short interest fell 17.0% to 8,302,639 shares as of Feb. 27 (about 1.8% of shares short) with a days-to-cover ratio of 3.0 based on average daily volume.
• Insiders sold roughly $94.3M of stock this quarter (including Bob De Lange), even as large institutions — including Norges Bank, Wellington and Capital International — materially increased positions, leaving institutional ownership at about 70.98%.
• Strong quarter and upbeat analyst view: Caterpillar beat EPS and revenue estimates ($5.16 EPS vs $4.67 est.; $19.13B revenue vs $17.81B), spurring multiple price-target raises and an average MarketBeat target of $730.50 with a "Moderate Buy" consensus.

Caterpillar Inc. (NYSE:CAT - Get Free Report) was the recipient of a significant drop in short interest during the month of February. As of February 27th, there was short interest totaling 8,302,639 shares, a drop of 17.0% from the February 12th total of 10,003,029 shares. Based on an average daily volume of 2,813,488 shares, the days-to-cover ratio is presently 3.0 days. Approximately 1.8% of the shares of the company are short sold. Approximately 1.8% of the shares of the company are short sold. Based on an average daily volume of 2,813,488 shares, the days-to-cover ratio is presently 3.0 days.

Insider Transactions at Caterpillar

In related news, insider Lange Bob De sold 22,656 shares of the stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $720.11, for a total value of $16,314,812.16. Following the transaction, the insider owned 79,953 shares in the company, valued at approximately $57,574,954.83. This represents a 22.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO William E. Schaupp sold 972 shares of the firm's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $764.20, for a total transaction of $742,802.40. Following the transaction, the chief accounting officer directly owned 824 shares of the company's stock, valued at $629,700.80. This represents a 54.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 135,950 shares of company stock valued at $94,327,990 over the last quarter. Company insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in shares of Caterpillar during the 2nd quarter worth about $2,165,899,000. Wellington Management Group LLP boosted its holdings in Caterpillar by 3,949.8% in the 3rd quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company's stock worth $2,494,568,000 after buying an additional 5,098,964 shares during the last quarter. Capital International Investors purchased a new stake in Caterpillar during the 4th quarter worth approximately $1,225,317,000. Massachusetts Financial Services Co. MA raised its holdings in shares of Caterpillar by 1,851.8% during the third quarter. Massachusetts Financial Services Co. MA now owns 1,830,414 shares of the industrial products company's stock valued at $873,382,000 after acquiring an additional 1,736,631 shares during the last quarter. Finally, Northwestern Mutual Wealth Management Co. lifted its position in shares of Caterpillar by 573.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company's stock valued at $861,947,000 after acquiring an additional 1,281,087 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on CAT shares. Bank of America upped their price target on shares of Caterpillar from $735.00 to $825.00 and gave the company a "buy" rating in a report on Tuesday, February 10th. Jefferies Financial Group lifted their price objective on Caterpillar from $785.00 to $825.00 and gave the company a "buy" rating in a research note on Friday, March 6th. UBS Group restated a "neutral" rating and issued a $677.00 target price on shares of Caterpillar in a research note on Monday, February 2nd. Oppenheimer lifted their price target on Caterpillar from $729.00 to $817.00 and gave the company an "outperform" rating in a research report on Friday, March 6th. Finally, Argus boosted their price target on Caterpillar from $625.00 to $820.00 and gave the company a "buy" rating in a report on Wednesday, February 11th. Sixteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Caterpillar has an average rating of "Moderate Buy" and an average price target of $730.50.

Caterpillar Price Performance

Shares of NYSE:CAT traded up $6.10 during trading on Monday, reaching $700.09. 2,096,189 shares of the company's stock traded hands, compared to its average volume of 2,950,427. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44. Caterpillar has a fifty-two week low of $267.30 and a fifty-two week high of $789.81. The company has a 50-day simple moving average of $695.58 and a 200-day simple moving average of $587.94. The firm has a market cap of $325.74 billion, a PE ratio of 37.20, a P/E/G ratio of 1.64 and a beta of 1.54.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Thursday, January 29th. The industrial products company reported $5.16 earnings per share for the quarter, topping analysts' consensus estimates of $4.67 by $0.49. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The company had revenue of $19.13 billion during the quarter, compared to analysts' expectations of $17.81 billion. Caterpillar's quarterly revenue was up 17.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $5.14 EPS. As a group, analysts predict that Caterpillar will post 19.86 earnings per share for the current year.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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