Caterpillar Inc. (NYSE:CAT) Receives $995.52 Average Price Target from Analysts

Shares of Caterpillar Inc. (NYSE:CAT) have been assigned an average recommendation of “Moderate Buy” from the twenty-five research firms that are covering the firm, MarketBeat reports. Eleven analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $995.5238.

A number of analysts have commented on CAT shares. Royal Bank Of Canada boosted their price target on shares of Caterpillar from $877.00 to $897.00 and gave the stock a “sector perform” rating in a research report on Wednesday, August 5th. DA Davidson upped their price target on Caterpillar from $845.00 to $882.00 and gave the company a “neutral” rating in a report on Thursday, August 6th. Barclays increased their price objective on Caterpillar from $800.00 to $900.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. Rothschild & Co Redburn lifted their target price on Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Finally, Erste Group Bank downgraded Caterpillar from a “buy” rating to a “hold” rating in a report on Monday, July 27th.

Caterpillar Stock Down 0.1%

CAT stock opened at $813.51 on Tuesday. The firm’s 50-day simple moving average is $868.12 and its 200 day simple moving average is $839.26. The stock has a market cap of $373.95 billion, a PE ratio of 35.00, a price-to-earnings-growth ratio of 1.41 and a beta of 1.60. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. Caterpillar has a fifty-two week low of $416.44 and a fifty-two week high of $1,073.46.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The business had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. During the same period in the previous year, the firm posted $4.72 earnings per share. The business’s revenue was up 23.7% on a year-over-year basis. As a group, sell-side analysts predict that Caterpillar will post 27.34 EPS for the current year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th were issued a $1.63 dividend. The ex-dividend date was Monday, July 20th. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. Caterpillar’s dividend payout ratio is 28.06%.

Insider Buying and Selling at Caterpillar

In other news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction that occurred 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 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.33% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Caterpillar

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. California State Teachers Retirement System raised its position in Caterpillar by 105,696.1% during the second quarter. California State Teachers Retirement System now owns 747,331,911 shares of the industrial products company’s stock valued at $795,833,752,000 after buying an additional 746,625,522 shares during the period. BlackRock Inc. acquired a new stake in Caterpillar during the 2nd quarter worth about $40,457,153,000. State Street Corp grew its stake in Caterpillar by 1.1% during the 4th quarter. State Street Corp now owns 35,388,550 shares of the industrial products company’s stock valued at $20,273,039,000 after acquiring an additional 385,204 shares in the last quarter. Geode Capital Management LLC grew its stake in Caterpillar by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company’s stock valued at $6,072,572,000 after acquiring an additional 94,524 shares in the last quarter. Finally, Fisher Asset Management LLC increased its holdings in shares of Caterpillar by 0.6% in the 4th quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company’s stock valued at $5,438,408,000 after purchasing an additional 54,069 shares during the period. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

About Caterpillar

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.