Caterpillar (NYSE:CAT) Hits New 1-Year High on Analyst Upgrade

Key Points

• Caterpillar shares reached a new **52-week high** after JPMorgan Chase & Co. lifted their price target from **$505.00 to $650.00**, maintaining an overweight rating on the stock.
• Several analysts have recently upgraded Caterpillar, with **two rating it as Strong Buy** and a consensus average target price of **$501.47**.
• Insider trades reveal that executives sold a total of **38,819 shares valued at approximately $16.9 million** over the past quarter, indicating notable insider activity in the company.

Caterpillar Inc. (NYSE:CAT - Get Free Report) shares hit a new 52-week high on Tuesday after JPMorgan Chase & Co. raised their price target on the stock from $505.00 to $650.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Caterpillar traded as high as $511.89 and last traded at $513.73, with a volume of 723747 shares traded. The stock had previously closed at $504.76.

A number of other equities research analysts have also recently issued reports on CAT. Erste Group Bank raised shares of Caterpillar from a "hold" rating to a "buy" rating in a research report on Friday, October 3rd. Barclays upped their price objective on shares of Caterpillar from $383.00 to $425.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 6th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Caterpillar in a research report on Saturday, September 27th. Citigroup upped their price objective on shares of Caterpillar from $540.00 to $570.00 and gave the stock a "buy" rating in a research report on Tuesday, October 7th. Finally, Bank of America upped their price objective on shares of Caterpillar from $495.00 to $517.00 and gave the stock a "buy" rating in a research report on Monday, September 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $501.47.

Insider Activity

In other news, insider Jason Kaiser sold 2,161 shares of the company's stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $417.70, for a total value of $902,649.70. Following the completion of the transaction, the insider owned 8,632 shares of the company's stock, valued at $3,605,586.40. This represents a 20.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Chairman Donald J. Umpleby III sold 17,168 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $412.87, for a total transaction of $7,088,152.16. Following the sale, the chairman directly owned 482,505 shares of the company's stock, valued at $199,211,839.35. This represents a 3.44% decrease in their position. The disclosure for this sale can be found here. Insiders sold 38,819 shares of company stock valued at $16,885,492 over the last quarter. 0.33% of the stock is owned by company insiders.

Institutional Trading of Caterpillar

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CAT. Kilter Group LLC acquired a new stake in shares of Caterpillar during the 2nd quarter worth approximately $27,000. Mid American Wealth Advisory Group Inc. acquired a new stake in shares of Caterpillar during the 2nd quarter worth approximately $28,000. Family Legacy Financial Solutions LLC acquired a new stake in shares of Caterpillar during the 2nd quarter worth approximately $32,000. RiverPark Advisors LLC bought a new position in shares of Caterpillar in the 2nd quarter worth $32,000. Finally, Harbor Asset Planning Inc. bought a new position in shares of Caterpillar in the 2nd quarter worth $34,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Caterpillar Trading Up 2.2%

The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.81 and a current ratio of 1.34. The business has a fifty day moving average of $444.65 and a 200-day moving average of $385.71. The company has a market capitalization of $241.77 billion, a P/E ratio of 26.22, a PEG ratio of 3.01 and a beta of 1.46.

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

Caterpillar Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 20th. Investors of record on Monday, October 20th will be issued a $1.51 dividend. The ex-dividend date of this dividend is Monday, October 20th. This represents a $6.04 annualized dividend and a yield of 1.2%. Caterpillar's dividend payout ratio (DPR) is 30.72%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.