Citigroup Forecasts Strong Price Appreciation for Caterpillar (NYSE:CAT) Stock

Key Points

• Citigroup raised its price target for Caterpillar (NYSE:CAT) from $540 to $570, indicating a potential upside of 15.35% based on the stock's current price.
• Caterpillar's latest quarterly earnings results showed $4.72 EPS, missing estimates by $0.16, while the company reported $16.57 billion in revenue, exceeding expectations.
• Analysts have a consensus rating of "Moderate Buy" for Caterpillar, with various price targets reflecting positive market sentiment, including upgrades from several firms.

Caterpillar (NYSE:CAT - Get Free Report) had its price objective lifted by research analysts at Citigroup from $540.00 to $570.00 in a research note issued on Tuesday,MarketScreener reports. The firm presently has a "buy" rating on the industrial products company's stock. Citigroup's price objective would suggest a potential upside of 15.35% from the stock's current price.

CAT has been the topic of several other research reports. Evercore ISI upgraded shares of Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 price target on the stock in a research report on Tuesday, August 19th. Jefferies Financial Group reissued a "buy" rating and set a $500.00 target price on shares of Caterpillar in a research note on Friday, August 29th. Truist Financial set a $582.00 price target on shares of Caterpillar in a research note on Wednesday. Melius Research raised Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 price target for the company in a report on Wednesday, July 9th. Finally, Oppenheimer lifted their target price on Caterpillar from $480.00 to $513.00 and gave the stock an "outperform" rating in a report on Monday, September 29th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Caterpillar has a consensus rating of "Moderate Buy" and an average target price of $473.53.

Caterpillar Trading Up 1.5%

Shares of Caterpillar stock opened at $494.15 on Tuesday. The firm has a market capitalization of $231.50 billion, a PE ratio of 25.17, a price-to-earnings-growth ratio of 3.01 and a beta of 1.46. 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 company's fifty day moving average price is $439.39 and its two-hundred day moving average price is $380.92. Caterpillar has a 52-week low of $267.30 and a 52-week high of $505.59.

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

Insider Transactions at Caterpillar

In other Caterpillar news, insider Jason Kaiser sold 2,161 shares of the business's stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $417.70, for a total value of $902,649.70. Following the transaction, the insider directly 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 ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Susan C. Schwab sold 2,324 shares of the business's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $410.00, for a total value of $952,840.00. Following the completion of the transaction, the director directly owned 6,917 shares in the company, valued at approximately $2,835,970. This trade represents a 25.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 38,819 shares of company stock worth $16,885,492. Insiders own 0.33% of the company's stock.

Hedge Funds Weigh In On Caterpillar

Large investors have recently bought and sold shares of the stock. Kilter Group LLC bought a new position in shares of Caterpillar during the 2nd quarter worth $27,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Caterpillar in the 2nd quarter valued at about $28,000. Compass Financial Services Inc raised its holdings in shares of Caterpillar by 49.2% in the 1st quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company's stock valued at $31,000 after acquiring an additional 31 shares in the last quarter. Family Legacy Financial Solutions LLC bought a new position in Caterpillar during the 2nd quarter worth approximately $32,000. Finally, RiverPark Advisors LLC bought a new position in Caterpillar during the 2nd quarter worth approximately $32,000. 70.98% of the stock is currently owned by institutional investors.

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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