Caterpillar (NYSE:CAT) Raised to Buy at Erste Group Bank

Key Points

• Caterpillar has been upgraded to a Buy rating by Erste Group Bank, indicating growing confidence in the company's performance.
• Truist Financial has also raised its target price for Caterpillar stock to $507.00, reflecting strong investor sentiment.
• Despite a slight decline in year-over-year revenue, Caterpillar reported $4.72 EPS for the last quarter, marking a $0.16 miss against analyst expectations.

Caterpillar (NYSE:CAT - Get Free Report) was upgraded by equities research analysts at Erste Group Bank from a "hold" rating to a "buy" rating in a report released on Friday,Finviz reports.

Other research analysts also recently issued reports about the company. Truist Financial boosted 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. Evercore ISI raised Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 price objective on the stock in a research note on Tuesday, August 19th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $500.00 price target on shares of Caterpillar in a report on Friday, August 29th. Bank of America raised their price objective on shares of Caterpillar from $495.00 to $517.00 and gave the company a "buy" rating in a research report on Monday, September 22nd. Finally, Sanford C. Bernstein reiterated a "market perform" rating on shares of Caterpillar in a research report on Monday, July 14th. Two research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and five have given a Hold rating to the company's stock. According to MarketBeat.com, Caterpillar currently has a consensus rating of "Moderate Buy" and a consensus price target of $466.53.

Caterpillar Stock Performance

Shares of NYSE:CAT opened at $490.88 on Friday. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.34 and a quick ratio of 0.81. The business's fifty day moving average price is $435.71 and its two-hundred day moving average price is $377.37. Caterpillar has a fifty-two week low of $267.30 and a fifty-two week high of $495.98. The stock has a market capitalization of $229.97 billion, a price-to-earnings ratio of 24.97, a price-to-earnings-growth ratio of 2.92 and a beta of 1.46.

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

Insider Activity

In other news, insider Jason Kaiser sold 2,161 shares of the firm's stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $417.70, for a total transaction of $902,649.70. Following the sale, the insider owned 8,632 shares of the company's stock, valued at $3,605,586.40. This trade represents a 20.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Susan C. Schwab sold 2,324 shares of the stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $410.00, for a total value of $952,840.00. Following the sale, the director directly 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. Insiders sold a total of 38,819 shares of company stock valued at $16,885,492 in the last ninety days. 0.33% of the stock is owned by insiders.

Institutional Investors Weigh In On Caterpillar

Hedge funds and other institutional investors have recently made changes to their positions in the stock. GAMMA Investing LLC boosted its stake in Caterpillar by 9.8% in the 3rd quarter. GAMMA Investing LLC now owns 11,763 shares of the industrial products company's stock worth $5,613,000 after purchasing an additional 1,049 shares during the period. Capital Asset Advisory Services LLC boosted its position in shares of Caterpillar by 5.2% during the third quarter. Capital Asset Advisory Services LLC now owns 10,387 shares of the industrial products company's stock worth $4,956,000 after buying an additional 516 shares during the period. Global Wealth Strategies & Associates grew its holdings in shares of Caterpillar by 11.1% during the third quarter. Global Wealth Strategies & Associates now owns 331 shares of the industrial products company's stock worth $158,000 after buying an additional 33 shares in the last quarter. TradeWell Securities LLC. acquired a new stake in Caterpillar in the 2nd quarter valued at approximately $221,000. Finally, Dakota Community Bank & Trust NA boosted its position in Caterpillar by 7.2% during the 2nd quarter. Dakota Community Bank & Trust NA now owns 582 shares of the industrial products company's stock worth $226,000 after acquiring an additional 39 shares during the last quarter. 70.98% of the stock is currently owned by institutional investors and hedge funds.

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.

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