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

Key Points

• Caterpillar Inc. shares reached a new 52-week high of $473.24 after Citigroup raised its price target from $500 to $540.
• Analysts are optimistic about the stock, with two analysts rating it as Strong Buy, and a consensus price target of $462.87.
• Recent insider trading showed significant sales by directors, with over 21,653 shares sold in the last quarter valued at nearly $8.94 million.

Caterpillar Inc. (NYSE:CAT - Get Free Report) shares reached a new 52-week high during trading on Tuesday after Citigroup raised their price target on the stock from $500.00 to $540.00. The stock traded as high as $473.24 and last traded at $471.97, with a volume of 3179376 shares changing hands. The stock had previously closed at $466.54.

Other research analysts have also issued reports about the stock. Bank of America boosted their price objective on shares of Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Melius Research upgraded shares of Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, July 9th. Barclays boosted their price objective on shares of Caterpillar from $383.00 to $425.00 and gave the company an "equal weight" rating in a report on Wednesday, August 6th. DA Davidson upped their price target on shares of Caterpillar from $331.00 to $388.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. Finally, Melius raised shares of Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a report on Wednesday, July 9th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, Caterpillar currently has an average rating of "Moderate Buy" and a consensus price target of $462.87.

Insider Activity

In other news, 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 sale, the director owned 6,917 shares in the company, valued at $2,835,970. This trade represents a 25.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, Chairman Donald J. Umpleby III sold 17,168 shares of Caterpillar 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 owned 482,505 shares in the company, valued at approximately $199,211,839.35. The trade was a 3.44% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 21,653 shares of company stock worth $8,943,642 over the last quarter. Insiders own 0.33% of the company's stock.

Institutional Trading of Caterpillar

Several institutional investors and hedge funds have recently made changes to their positions in CAT. Kilter Group LLC bought a new stake in shares of Caterpillar in the second quarter valued at about $27,000. Mid American Wealth Advisory Group Inc. bought a new position in Caterpillar in the second quarter worth about $28,000. Compass Financial Services Inc raised its holdings in Caterpillar by 49.2% in the first 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 bought a new position in Caterpillar in the second quarter worth about $32,000. Finally, RiverPark Advisors LLC bought a new position in Caterpillar in the second quarter worth about $32,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Price Performance

The firm has a market capitalization of $221.11 billion, a P/E ratio of 24.01, a P/E/G ratio of 2.84 and a beta of 1.41. 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 stock's fifty day simple moving average is $426.53 and its 200 day simple moving average is $370.38.

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 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 analysts' expectations of $16.14 billion. During the same quarter in the prior year, the company earned $5.99 EPS. Caterpillar's quarterly revenue was down .7% on a year-over-year basis. On average, equities research analysts predict that Caterpillar Inc. will post 19.86 EPS for the current year.

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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