Caterpillar (NYSE:CAT) Trading 3.1% Higher After Analyst Upgrade

Key Points

• Caterpillar shares rose 3.1% after Evercore lifted its price target from $878 to $1,103, helping push the stock to an intraday high of $929.
• Several other analysts also turned more bullish, including Wells Fargo, HSBC and Truist, and the stock now carries a Moderate Buy consensus with an average target price of $911.77.
• The company recently reported strong quarterly results, with EPS of $5.54 beating estimates and revenue of $17.42 billion topping forecasts, while Caterpillar also announced a quarterly dividend of $1.51 per share.

Shares of Caterpillar Inc. (NYSE:CAT - Get Free Report) traded up 3.1% during mid-day trading on Monday after Evercore raised their price target on the stock from $878.00 to $1,103.00. The company traded as high as $929.00 and last traded at $925.5430. 2,745,315 shares were traded during trading, an increase of 1% from the average session volume of 2,713,392 shares. The stock had previously closed at $897.45.

CAT has been the topic of a number of other reports. Wells Fargo & Company upped their price target on Caterpillar from $960.00 to $1,050.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. Morgan Stanley set a $915.00 price target on Caterpillar and gave the stock an "equal weight" rating in a research report on Friday, May 1st. HSBC upped their price target on Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. Rothschild & Co Redburn upped their target price on Caterpillar from $650.00 to $700.00 and gave the company a "neutral" rating in a research report on Wednesday, February 4th. Finally, Truist Financial set a $1,043.00 target price on Caterpillar in a research report on Friday, May 1st. Sixteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $911.77.

Insider Transactions at Caterpillar

In other Caterpillar news, insider Jason Kaiser sold 5,642 shares of the company's stock in a transaction on Monday, May 4th. The shares were sold at an average price of $883.03, for a total value of $4,982,055.26. Following the sale, the insider directly owned 9,594 shares of the company's stock, valued at approximately $8,471,789.82. This represents a 37.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the company's stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the completion of the sale, the chief financial officer directly owned 52,935 shares in the company, valued at approximately $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 75,734 shares of company stock worth $67,054,613 over the last 90 days. Insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

Several hedge funds have recently added to or reduced their stakes in the business. Cornerstone Advisory LLC boosted its holdings in Caterpillar by 0.7% in the first quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company's stock valued at $1,288,000 after purchasing an additional 12 shares during the last quarter. Advisory Resource Group lifted its stake in Caterpillar by 0.8% in the 4th quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company's stock valued at $935,000 after buying an additional 13 shares in the last quarter. Sunbeam Capital Management LLC lifted its stake in Caterpillar by 1.1% in the 1st quarter. Sunbeam Capital Management LLC now owns 1,164 shares of the industrial products company's stock valued at $825,000 after buying an additional 13 shares in the last quarter. Brandywine Oak Private Wealth LLC lifted its stake in Caterpillar by 2.6% in the 1st quarter. Brandywine Oak Private Wealth LLC now owns 506 shares of the industrial products company's stock valued at $358,000 after buying an additional 13 shares in the last quarter. Finally, Sylvest Advisors LLC lifted its stake in Caterpillar by 3.6% in the 1st quarter. Sylvest Advisors LLC now owns 377 shares of the industrial products company's stock valued at $267,000 after buying an additional 13 shares in the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Price Performance

The stock has a market capitalization of $426.30 billion, a PE ratio of 46.07, a price-to-earnings-growth ratio of 1.80 and a beta of 1.63. The stock's 50 day moving average is $755.75 and its two-hundred day moving average is $664.91. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. The firm had revenue of $17.42 billion for the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. Caterpillar's quarterly revenue was up 22.2% compared to the same quarter last year. During the same period last year, the company posted $4.25 EPS. On average, equities analysts anticipate that Caterpillar Inc. will post 24.21 EPS for the current fiscal year.

Caterpillar Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th will be issued a $1.51 dividend. The ex-dividend date is Monday, April 20th. This represents a $6.04 dividend on an annualized basis and a yield of 0.7%. Caterpillar's dividend payout ratio is presently 30.06%.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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