Caterpillar Inc. (NYSE:CAT) Stock Has Average Price Target of $898.25

Key Points

• Analyst sentiment is moderately positive: 15 of 27 analysts rate Caterpillar a buy and 12 rate it hold, with an average 12-month price target of $898.25.
• Shares have fallen sharply: CAT traded at $599.80, well below its 52-week high of $1,073.46; recent analyst price targets were mixed, including substantial reductions.
• Caterpillar beat quarterly earnings-per-share estimates and reported 17.3% year-over-year revenue growth, while revenue came in slightly below consensus. Its reported $78 billion backlog offers added business visibility.

Shares of Caterpillar Inc. (NYSE:CAT - Get Free Report) have been assigned an average recommendation of "Moderate Buy" from the twenty-seven analysts that are presently covering the stock, Marketbeat reports. Twelve investment analysts have rated the stock with a hold rating and fifteen have issued a buy rating on the company. The average 12 month price objective among analysts that have covered the stock in the last year is $898.25.

A number of research firms have issued reports on CAT. Weiss Ratings downgraded Caterpillar from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, October 29th. Citigroup decreased their price objective on Caterpillar from $950.00 to $800.00 and set a "buy" rating on the stock in a report on Friday, October 30th. DA Davidson lowered their target price on Caterpillar from $882.00 to $685.00 and set a "neutral" rating for the company in a research report on Monday, November 2nd. Freedom Broker cut their target price on shares of Caterpillar from $980.00 to $800.00 and set a "buy" rating for the company in a report on Monday, November 2nd. Finally, Barclays boosted their price target on shares of Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 6th.

Top Caterpillar Stories

Investors following CAT have been watching these stories:

• Positive Sentiment: Caterpillar ended the third quarter with a record $78 billion backlog, nearly double the year-earlier level. Strong orders across construction, mining and power generation offer revenue visibility, while capacity expansion and automation investments could help support growth. CAT's Record $78B Backlog Signals Strength
• Positive Sentiment: Investor Kevin Simpson reportedly bought more CAT shares, a favorable sentiment signal, though the article does not provide the rationale or size of the purchase. Trade tracker: Kevin Simpson buys more Caterpillar
• Negative Sentiment: Pomerantz LLP announced an investigation into claims on behalf of Caterpillar investors. The release does not detail the claims, but the investigation could add legal uncertainty. Pomerantz Law Firm Investigates Claims

Insiders Place Their Bets

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer directly owned 34,555 shares of the company's stock, valued at $27,954,303.90. This trade represents a 48.39% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director David Maclennan bought 350 shares of Caterpillar stock in a transaction dated Thursday, November 12th. The stock was acquired at an average price of $596.10 per share, for a total transaction of $208,635.00. Following the completion of the acquisition, the director owned 8,773 shares in the company, valued at approximately $5,229,585.30. The trade was a 4.16% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Corporate insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

Large investors have recently added to or reduced their stakes in the stock. Diversify Advisory Services LLC purchased a new position in shares of Caterpillar during the 2nd quarter worth $5,372,000. D.B. Root & Company LLC acquired a new position in shares of Caterpillar during the 2nd quarter valued at about $850,000. Dearborn Partners LLC purchased a new stake in shares of Caterpillar in the second quarter valued at about $20,293,000. B. Metzler seel. Sohn & Co. AG grew its holdings in shares of Caterpillar by 4.3% in the second quarter. B. Metzler seel. Sohn & Co. AG now owns 62,731 shares of the industrial products company's stock valued at $66,802,000 after purchasing an additional 2,590 shares during the period. Finally, Van Hulzen Asset Management LLC grew its holdings in shares of Caterpillar by 85.3% in the second quarter. Van Hulzen Asset Management LLC now owns 2,809 shares of the industrial products company's stock valued at $2,991,000 after purchasing an additional 1,293 shares during the period. 70.98% of the stock is owned by institutional investors.

Caterpillar Price Performance

Shares of Caterpillar stock traded down $5.48 during trading on Friday, reaching $599.80. 2,287,211 shares of the stock traded hands, compared to its average volume of 3,857,929. The company has a market capitalization of $274.46 billion, a price-to-earnings ratio of 23.53, a P/E/G ratio of 1.05 and a beta of 1.65. The business has a fifty day simple moving average of $740.65 and a two-hundred day simple moving average of $805.20. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.42 and a quick ratio of 0.88. Caterpillar has a 52-week low of $537.08 and a 52-week high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last posted its earnings results on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, topping analysts' consensus estimates of $7.06 by $0.14. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. The company had revenue of $20.68 billion for the quarter, compared to the consensus estimate of $20.76 billion. During the same period in the previous year, the business earned $4.95 earnings per share. The firm's revenue for the quarter was up 17.3% on a year-over-year basis. Sell-side analysts expect that Caterpillar will post 27.38 EPS for the current year.

Caterpillar Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 26th will be given a dividend of $1.63 per share. The ex-dividend date is Monday, October 26th. This represents a $6.52 annualized dividend and a yield of 1.1%. Caterpillar's dividend payout ratio (DPR) is 25.58%.

Caterpillar Company Profile

Caterpillar Inc. is a global manufacturer of construction and mining equipment, engines, turbines, and related products and services. Its offerings include earthmoving and material-handling machines, diesel and natural gas engines, power-generation systems, and equipment and technologies used in mining and transportation. The company's products are commonly sold under the Cat brand. Caterpillar serves customers in markets around the world through a network of independent dealers. Its businesses also provide parts, maintenance, equipment rental, and other support services, as well as financing and insurance through its financial services operations.

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