Caterpillar Inc. (CAT) Rating Increased to Buy at Zacks Investment Research
Caterpillar Inc. (NYSE:CAT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Thursday. The firm presently has a $98.00 price objective on the stock. Zacks Investment Research’s price target would suggest a potential upside of 11.78% from the stock’s current price.
According to Zacks, “Caterpillar is poised to benefit from the steady growth in construction activities. Asia Pacific is improving consistently, logging a 12% increase in Aug, the best performance this year and marking its sixth consecutive month of growth. The EAME construction industry has also witnessed positive growth in three of the past four months. Also, leading indicators of U.S. non-residential construction signal robust conditions ahead for the domestic construction industry. In line with its efforts to cut down costs, reduce capacity in the wake of lower demand, Caterpillar is shifting production from its Belgium facility. This, along with other restructuring actions as well as share repurchases will help the mining behemoth to weather the weak mining environment. Also, the company has a positive record of earnings surprises in the recent quarters.”
Several other equities analysts have also commented on CAT. Vetr upgraded shares of Caterpillar from a “strong sell” rating to a “sell” rating and set a $79.15 price objective for the company in a research report on Wednesday, July 27th. Barclays PLC increased their price objective on shares of Caterpillar from $78.00 to $90.00 and gave the company an “equal weight” rating in a research report on Wednesday, October 12th. RBC Capital Markets set a $73.00 target price on shares of Caterpillar and gave the stock a “hold” rating in a report on Wednesday, July 27th. Citigroup Inc. raised their target price on shares of Caterpillar from $75.00 to $82.00 and gave the stock a “neutral” rating in a report on Wednesday, July 27th. Finally, Jefferies Group raised their target price on shares of Caterpillar from $69.00 to $72.00 and gave the stock a “hold” rating in a report on Thursday, July 28th. Three investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and eleven have given a buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus target price of $76.48.
Caterpillar (NYSE:CAT) opened at 87.67 on Thursday. The company’s 50 day moving average is $84.36 and its 200 day moving average is $79.01. The stock has a market cap of $51.22 billion, a PE ratio of 58.45 and a beta of 1.54. Caterpillar has a 12 month low of $56.36 and a 12 month high of $89.87.
Caterpillar (NYSE:CAT) last released its quarterly earnings data on Tuesday, July 26th. The company reported $1.09 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.96 by $0.13. Caterpillar had a net margin of 2.64% and a return on equity of 12.37%. The business earned $10.34 billion during the quarter, compared to analyst estimates of $10.06 billion. During the same quarter last year, the business earned $1.27 earnings per share. Caterpillar’s quarterly revenue was down 16.0% compared to the same quarter last year. On average, analysts anticipate that Caterpillar will post $3.50 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Saturday, November 19th. Shareholders of record on Monday, October 24th will be paid a dividend of $0.77 per share. This represents a $3.08 annualized dividend and a yield of 3.51%. The ex-dividend date is Thursday, October 20th. Caterpillar’s payout ratio is 165.59%.
In other news, insider Bradley M. Halverson sold 2,841 shares of Caterpillar stock in a transaction that occurred on Thursday, July 28th. The shares were sold at an average price of $82.73, for a total transaction of $235,035.93. Following the completion of the transaction, the insider now directly owns 20,232 shares of the company’s stock, valued at approximately $1,673,793.36. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Dennis A. Muilenburg bought 1,930 shares of the business’s stock in a transaction dated Friday, July 29th. The shares were purchased at an average cost of $82.75 per share, with a total value of $159,707.50. Following the completion of the acquisition, the director now owns 9,558 shares in the company, valued at $790,924.50. The disclosure for this purchase can be found here. Company insiders own 0.15% of the company’s stock.
Institutional investors have recently bought and sold shares of the stock. Pittenger & Anderson Inc. raised its position in Caterpillar by 1.9% in the second quarter. Pittenger & Anderson Inc. now owns 1,325 shares of the company’s stock valued at $100,000 after buying an additional 25 shares during the period. Kelly Lawrence W & Associates Inc. CA raised its position in Caterpillar by 15.4% in the first quarter. Kelly Lawrence W & Associates Inc. CA now owns 1,500 shares of the company’s stock valued at $115,000 after buying an additional 200 shares during the period. Nelson Van Denburg & Campbell Wealth Management Group LLC raised its position in Caterpillar by 266.3% in the second quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC now owns 1,513 shares of the company’s stock valued at $115,000 after buying an additional 1,100 shares during the period. CapWealth Advisors LLC raised its position in Caterpillar by 6.3% in the second quarter. CapWealth Advisors LLC now owns 1,685 shares of the company’s stock valued at $128,000 after buying an additional 100 shares during the period. Finally, Archford Capital Strategies LLC raised its position in Caterpillar by 1,424.3% in the second quarter. Archford Capital Strategies LLC now owns 1,692 shares of the company’s stock valued at $128,000 after buying an additional 1,581 shares during the period. 68.99% of the stock is owned by hedge funds and other institutional investors.
Caterpillar Company Profile
Caterpillar Inc is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its three product segments: Resource Industries, Construction Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment.
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