Caterpillar (NYSE:CAT) Stock Price Expected to Rise, Bank of America Analyst Says

Key Points

• Bank of America analysts raised the target price for Caterpillar from $460.00 to $495.00, indicating a potential upside of 14.18% from the current stock price.
• Caterpillar received multiple upgrades from various brokerages, with a consensus rating of "Moderate Buy" and a target price averaging $432.87.
• In the most recent quarter, Caterpillar reported an earnings per share of $4.72, which was below the consensus estimate of $4.88, but revenue exceeded expectations at $16.57 billion.

Caterpillar (NYSE:CAT - Get Free Report) had its target price upped by analysts at Bank of America from $460.00 to $495.00 in a report released on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the industrial products company's stock. Bank of America's price target suggests a potential upside of 14.18% from the stock's current price.

Several other brokerages have also recently commented on CAT. Melius upgraded shares of Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a research report on Wednesday, July 9th. Citigroup reaffirmed a "buy" rating and set a $420.00 price objective (up from $370.00) on shares of Caterpillar in a research note on Tuesday, June 24th. Barclays increased their target price on Caterpillar from $335.00 to $383.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Baird R W upgraded Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 13th. Finally, Morgan Stanley upgraded shares of Caterpillar from an "underweight" rating to an "equal weight" rating and cut their price target for the company from $300.00 to $283.00 in a research report on Wednesday, April 16th. Seven investment analysts have rated the stock with a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, Caterpillar currently has a consensus rating of "Moderate Buy" and a consensus target price of $432.87.

Caterpillar Trading Down 0.0%

CAT stock opened at $433.54 on Wednesday. The company has a current ratio of 1.32, a quick ratio of 0.77 and a debt-to-equity ratio of 1.43. The firm has a market cap of $204.21 billion, a P/E ratio of 21.13, a P/E/G ratio of 2.71 and a beta of 1.40. Caterpillar has a 1-year low of $267.30 and a 1-year high of $441.15. The business's 50 day moving average is $389.11 and its 200-day moving average is $354.92.

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 15.71% and a return on equity of 53.77%. 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. Equities analysts anticipate that Caterpillar will post 19.86 earnings per share for the current fiscal year.

Institutional Trading of Caterpillar

Several institutional investors and hedge funds have recently bought and sold shares of CAT. Valeo Financial Advisors LLC increased its position in shares of Caterpillar by 36,842.1% during the 2nd quarter. Valeo Financial Advisors LLC now owns 7,299,751 shares of the industrial products company's stock worth $2,833,836,000 after purchasing an additional 7,279,991 shares during the last quarter. Northern Trust Corp boosted its holdings in shares of Caterpillar by 11.8% in the 4th quarter. Northern Trust Corp now owns 6,847,330 shares of the industrial products company's stock valued at $2,483,937,000 after buying an additional 724,477 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Caterpillar by 6.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,204,445 shares of the industrial products company's stock valued at $1,386,626,000 after buying an additional 264,054 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its holdings in Caterpillar by 8.6% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,940,391 shares of the industrial products company's stock worth $1,429,416,000 after buying an additional 312,878 shares during the last quarter. Finally, GAMMA Investing LLC raised its position in Caterpillar by 43,447.3% during the first quarter. GAMMA Investing LLC now owns 3,730,259 shares of the industrial products company's stock worth $1,230,239,000 after acquiring an additional 3,721,693 shares in the last quarter. 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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