Caterpillar (NYSE:CAT) Shares Up 1% - Should You Buy?

Key Points

• Caterpillar shares rose 1% to $817.29, though trading volume was 36% below the average. The stock remains below its 50-day and 200-day moving averages.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $994.17; individual targets range from $882 to $1,118.
• Caterpillar exceeded quarterly expectations, reporting EPS of $8.17 versus a $6.22 estimate and revenue of $20.54 billion, up 23.7% year over year. However, CEO Joseph Creed sold roughly $26.2 million of stock, reducing his direct holdings by 48.39%.

Caterpillar Inc. (NYSE:CAT - Get Free Report)'s stock price was up 1% during mid-day trading on Monday . The company traded as high as $827.81 and last traded at $817.29. Approximately 1,833,357 shares traded hands during mid-day trading, a decline of 36% from the average daily volume of 2,852,779 shares. The stock had previously closed at $808.99.

Analyst Ratings Changes

Several equities research analysts have weighed in on CAT shares. Barclays upped their price target on Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Freedom Broker upgraded shares of Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 target price on the stock in a research note on Thursday, September 10th. DA Davidson raised their target price on shares of Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. Oppenheimer reiterated an "outperform" rating and issued a $1,118.00 price target on shares of Caterpillar in a research note on Tuesday, August 4th. Finally, Weiss Ratings raised shares of Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 19th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eleven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $994.17.

Caterpillar Stock Up 1.0%

The firm has a 50-day moving average price of $837.71 and a two-hundred day moving average price of $842.12. The firm has a market cap of $375.69 billion, a price-to-earnings ratio of 35.17, a price-to-earnings-growth ratio of 1.40 and a beta of 1.60. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The firm had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. During the same period in the prior year, the company posted $4.72 earnings per share. The firm's quarterly revenue was up 23.7% compared to the same quarter last year. On average, sell-side analysts forecast that Caterpillar Inc. will post 27.37 earnings per share for the current year.

Insider Activity at Caterpillar

In related 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 transaction of $26,211,760.98. Following the sale, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. This trade represents a 48.39% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.33% of the stock is owned by company insiders.

Hedge Funds Weigh In On Caterpillar

Several hedge funds have recently made changes to their positions in CAT. Security National Bank of Sioux City Iowa IA lifted its holdings in shares of Caterpillar by 9.8% in the 2nd quarter. Security National Bank of Sioux City Iowa IA now owns 1,131 shares of the industrial products company's stock valued at $1,204,000 after purchasing an additional 101 shares during the last quarter. Bullseye Investment Management LLC purchased a new position in Caterpillar during the 2nd quarter worth approximately $154,000. U S Wealth Group LLC. acquired a new position in Caterpillar during the second quarter worth approximately $1,068,000. Miramontes Capital LLC lifted its stake in Caterpillar by 0.8% in the second quarter. Miramontes Capital LLC now owns 2,063 shares of the industrial products company's stock valued at $2,197,000 after buying an additional 16 shares during the last quarter. Finally, Capstone Financial Advisors Inc. boosted its holdings in shares of Caterpillar by 1.1% in the second quarter. Capstone Financial Advisors Inc. now owns 2,693 shares of the industrial products company's stock valued at $2,868,000 after acquiring an additional 30 shares during the period. Hedge funds and other institutional investors own 70.98% of the company's stock.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction, mining, and industrial equipment. The company's products include excavators, dozers, wheel loaders, motor graders, articulated trucks, and off-highway trucks, as well as related attachments and work tools. Caterpillar also supplies replacement parts, equipment services, technology solutions, and rental support through its dealer network.

The company serves customers in construction, mining, quarrying, energy, transportation, forestry, agriculture, and government-related industries.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.