Caterpillar Inc. (NYSE:CAT – Get Free Report) has been assigned an average rating of “Moderate Buy” from the twenty-seven research firms that are presently covering the stock, MarketBeat reports. Eleven equities research analysts have rated the stock with a hold recommendation, fifteen have issued a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $994.38.
A number of brokerages recently commented on CAT. JPMorgan Chase & Co. raised their target price on Caterpillar from $1,125.00 to $1,165.00 and gave the stock an “overweight” rating in a report on Wednesday, June 17th. Wells Fargo & Company upped their price target on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an “overweight” rating in a report on Tuesday, June 23rd. Sanford C. Bernstein reiterated a “market perform” rating and issued a $1,002.00 price target on shares of Caterpillar in a report on Wednesday, August 5th. Erste Group Bank lowered Caterpillar from a “buy” rating to a “hold” rating in a research report on Monday, July 27th. Finally, Royal Bank Of Canada increased their price objective on Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a report on Wednesday, August 5th.
Check Out Our Latest Research Report on Caterpillar
Key Headlines Impacting Caterpillar
- Positive Sentiment: Market rally lifts CAT: Caterpillar was one of the notable contributors to a roughly 400-point Dow rally, benefiting from renewed demand for large-cap industrial stocks and gains in technology and manufacturing shares. Dow’s 400-point rally led by gains in Caterpillar, NVIDIA Corp. shares
- Positive Sentiment: $1 billion North Carolina expansion: Caterpillar plans a new Sanford, North Carolina, manufacturing facility expected to create more than 1,950 jobs. The site will expand production of compact track loaders and other compact construction equipment, supporting the company’s Cat Compact growth strategy and adding capacity in a growing product category. Caterpillar invests $1B in Sanford expansion
- Positive Sentiment: Broader investment and distribution strategy: Coverage indicates Caterpillar and Ultium Cells are making major facility investments, while CAT also plans to acquire Fabick Cat, a long-established dealership. These moves could strengthen manufacturing capacity, distribution and customer reach, though they require substantial capital. Caterpillar and Ultium Cells make $1B facility investments
- Neutral Sentiment: Analyst support is constructive but not decisive: Caterpillar’s average brokerage recommendation favors investment, but the report cautions that sell-side ratings can be overly optimistic. With CAT trading at a high earnings multiple, further upside likely depends on sustained earnings growth rather than ratings alone. Caterpillar Is Considered a Good Investment by Brokers
Caterpillar Stock Up 2.3%
Shares of NYSE:CAT opened at $845.38 on Friday. The stock has a fifty day simple moving average of $822.30 and a two-hundred day simple moving average of $849.01. The stock has a market capitalization of $388.60 billion, a price-to-earnings ratio of 36.38, a PEG ratio of 1.43 and a beta of 1.58. Caterpillar has a 12-month low of $483.55 and a 12-month high of $1,073.46. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65.
Caterpillar (NYSE:CAT – Get Free Report) last issued 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 business had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The company’s revenue was up 23.7% compared to the same quarter last year. During the same period last year, the business posted $4.72 EPS. On average, research analysts anticipate that Caterpillar will post 27.37 earnings per share for the current fiscal year.
Insider Transactions at Caterpillar
In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction dated Friday, August 28th. The stock was 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 of the company’s stock, valued at approximately $27,954,303.90. This trade represents a 48.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.33% of the stock is owned by corporate insiders.
Hedge Funds Weigh In On Caterpillar
Hedge funds and other institutional investors have recently made changes to their positions in the company. Lam Group Inc. acquired a new position in shares of Caterpillar in the 1st quarter valued at $26,000. Decker Retirement Planning Inc. increased its stake in Caterpillar by 440.0% in the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after purchasing an additional 22 shares during the last quarter. Cornerstone Financial Management LLC acquired a new stake in Caterpillar during the 4th quarter worth $32,000. Matrix Trust Co boosted its position in shares of Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after purchasing an additional 15 shares during the period. Finally, Monetary Solutions Ltd purchased a new stake in Caterpillar in the fourth quarter valued at approximately $35,000. 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 and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.
The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.
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