Caterpillar Inc. (NYSE:CAT – Get Free Report) traded up 1.2% on Friday . The company traded as high as $809.49 and last traded at $808.39. Approximately 4,655,460 shares were traded during trading, an increase of 63% from the average session volume of 2,854,511 shares. The stock had previously closed at $798.57.
Caterpillar News Roundup
Here are the key news stories impacting Caterpillar this week:
- Positive Sentiment: Autonomous-hauling expansion: Caterpillar and Luck Stone are expanding the use of self-driving Cat 775 haul trucks to two additional U.S. quarries. The rollout could improve safety, productivity and operating consistency while supporting Caterpillar’s longer-term automation strategy. Caterpillar’s Robot Trucks Are Heading to Two More Quarries
- Positive Sentiment: AI infrastructure exposure: Zacks identified CAT as a long-term beneficiary of the AI data-center buildout, alongside infrastructure-equipment companies EMCOR and Quanta Services. Strong backlogs and infrastructure investment plans are supporting the bullish case for construction and power-related equipment demand. Buy AI-Led EME, PWR and CAT for Long-Term Growth
- Positive Sentiment: Favorable industry outlook: Analysts continue to view the construction and mining equipment industry positively, highlighting Caterpillar’s potential exposure to construction activity, mining demand and infrastructure investment. Caterpillar also unveiled three machines at Bauma CONEXPO India, expanding its product visibility in a growth market. Zacks Industry Outlook: Caterpillar, Komatsu and Terex
- Neutral Sentiment: Dividend appeal remains intact: Caterpillar is presented as a long-running dividend grower, making CAT relevant to investors seeking income and long-term compounding in retirement accounts. The article is an allocation comparison with Coca-Cola rather than a new dividend announcement, so it is unlikely to materially change near-term trading. Which Dividend Aristocrat Is Roth Ready?
- Negative Sentiment: Valuation and execution risks: Commentary on buying the dip emphasizes that the autonomous-truck rollout is strategically positive but may not immediately affect earnings. With CAT trading at a relatively elevated valuation and below its reported moving averages, investors may remain sensitive to economic-cycle concerns, demand softness and the need for automation investments to generate measurable financial returns. Caterpillar Robot Trucks and the Dip Under $800
Wall Street Analysts Forecast Growth
A number of research firms have commented on CAT. Needham & Company LLC set a $980.00 price objective on shares of Caterpillar in a research note on Thursday, September 10th. Robert W. Baird set a $970.00 target price on Caterpillar in a research report on Wednesday, August 5th. DA Davidson lifted their price objective on shares of Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. Weiss Ratings raised shares of Caterpillar from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, August 19th. Finally, Zacks Research raised shares of Caterpillar from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $994.17.
Caterpillar Stock Up 1.2%
The firm’s 50 day simple moving average is $840.59 and its 200 day simple moving average is $841.73. The company has a market cap of $371.60 billion, a price-to-earnings ratio of 34.78, a price-to-earnings-growth ratio of 1.36 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 (NYSE:CAT – Get Free Report) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating the consensus estimate of $6.22 by $1.95. The firm had revenue of $20.54 billion for the quarter, compared to analysts’ expectations of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The firm’s revenue was up 23.7% compared to the same quarter last year. During the same period last year, the firm earned $4.72 EPS. Sell-side analysts anticipate that Caterpillar Inc. will post 27.37 EPS for the current fiscal year.
Insider Buying and Selling at Caterpillar
In related news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction dated 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. The trade was a 48.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.33% of the stock is currently owned by corporate insiders.
Institutional Inflows and Outflows
A number of hedge funds have recently made changes to their positions in the stock. Bullseye Investment Management LLC acquired a new stake in Caterpillar in the second quarter worth approximately $154,000. U S Wealth Group LLC. acquired a new position in shares of Caterpillar during the 2nd quarter valued at $1,068,000. Miramontes Capital LLC raised its stake in shares of Caterpillar by 0.8% in the 2nd quarter. Miramontes Capital LLC now owns 2,063 shares of the industrial products company’s stock worth $2,197,000 after buying an additional 16 shares in the last quarter. Capstone Financial Advisors Inc. lifted 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 buying an additional 30 shares during the period. Finally, Tortoise Investment Management LLC boosted its stake in Caterpillar by 4.3% during the second quarter. Tortoise Investment Management LLC now owns 485 shares of the industrial products company’s stock valued at $517,000 after buying an additional 20 shares in the last quarter. Institutional investors and hedge funds 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.
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