Caterpillar (NYSE:CAT) Hits New 1-Year High - What's Next?

Key Points

• Caterpillar Inc. (NYSE:CAT) has reached a new 52-week high with its stock price peaking at $486.50 and closing at $493.45.
• Several analysts, including Jefferies and Truist Financial, have set price targets at or above $500, indicating strong market support with a consensus rating of "Moderate Buy."
• Despite reporting a miss on EPS expectations for the latest quarter, with $4.72 compared to the consensus of $4.88, the company generated revenue of $16.57 billion, slightly exceeding estimates.

Caterpillar Inc. (NYSE:CAT - Get Free Report)'s stock price hit a new 52-week high during trading on Thursday . The company traded as high as $486.50 and last traded at $493.45, with a volume of 10154 shares traded. The stock had previously closed at $480.82.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on CAT shares. Jefferies Financial Group restated a "buy" rating and set a $500.00 price objective on shares of Caterpillar in a report on Friday, August 29th. Melius upgraded shares of Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 price objective on the stock in a report on Wednesday, July 9th. Truist Financial raised their price objective on shares of Caterpillar from $414.00 to $507.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Oppenheimer raised their price objective on shares of Caterpillar from $480.00 to $513.00 and gave the stock an "outperform" rating in a report on Monday. Finally, Barclays raised their price objective on shares of Caterpillar from $383.00 to $425.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Caterpillar has an average rating of "Moderate Buy" and a consensus price target of $466.53.

Caterpillar Trading Up 1.0%

The business's 50-day moving average price is $434.48 and its 200 day moving average price is $376.35. The company has a market cap of $227.55 billion, a P/E ratio of 24.70, a P/E/G ratio of 2.90 and a beta of 1.46. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.81 and a current ratio of 1.34.

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

Insider Buying and Selling

In related news, insider Jason Kaiser sold 2,161 shares of Caterpillar stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $417.70, for a total transaction of $902,649.70. Following the completion of the sale, the insider owned 8,632 shares of the company's stock, valued at approximately $3,605,586.40. The trade was a 20.02% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Susan C. Schwab sold 2,324 shares of Caterpillar stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $410.00, for a total transaction of $952,840.00. Following the sale, the director directly owned 6,917 shares of the company's stock, valued at $2,835,970. The trade was a 25.15% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 38,819 shares of company stock valued at $16,885,492. Company insiders own 0.33% of the company's stock.

Institutional Trading of Caterpillar

Several hedge funds and other institutional investors have recently modified their holdings of CAT. Kilter Group LLC acquired a new stake in Caterpillar in the 2nd quarter worth about $27,000. Mid American Wealth Advisory Group Inc. acquired a new stake in Caterpillar in the 2nd quarter worth about $28,000. Compass Financial Services Inc raised its stake in Caterpillar by 49.2% in the 1st quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company's stock worth $31,000 after purchasing an additional 31 shares in the last quarter. Family Legacy Financial Solutions LLC acquired a new stake in Caterpillar in the 2nd quarter worth about $32,000. Finally, RiverPark Advisors LLC acquired a new stake in Caterpillar in the 2nd quarter worth about $32,000. Institutional investors own 70.98% of the company's stock.

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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