Caterpillar (NYSE:CAT) Lifted to “Buy” at StockNews.com

StockNews.com upgraded shares of Caterpillar (NYSE:CAT) from a hold rating to a buy rating in a report published on Thursday morning.

CAT has been the topic of a number of other research reports. Citigroup assumed coverage on shares of Caterpillar in a report on Wednesday, June 26th. They set a buy rating and a $380.00 target price on the stock. Oppenheimer reaffirmed a market perform rating on shares of Caterpillar in a report on Thursday, April 18th. Raymond James assumed coverage on shares of Caterpillar in a report on Friday, June 28th. They set a market perform rating on the stock. The Goldman Sachs Group upped their target price on shares of Caterpillar from $357.00 to $408.00 and gave the stock a buy rating in a report on Tuesday, April 16th. Finally, TD Cowen upped their target price on shares of Caterpillar from $338.00 to $340.00 and gave the stock a buy rating in a report on Friday, April 26th. One equities research analyst has rated the stock with a sell rating, nine have assigned a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat, the company has an average rating of Hold and an average target price of $329.63.

Caterpillar Stock Performance

NYSE CAT opened at $350.48 on Thursday. The company’s 50 day moving average is $336.58 and its 200-day moving average is $335.97. Caterpillar has a 12-month low of $223.76 and a 12-month high of $382.01. The company has a quick ratio of 0.83, a current ratio of 1.35 and a debt-to-equity ratio of 1.41. The firm has a market cap of $171.40 billion, a P/E ratio of 15.82, a price-to-earnings-growth ratio of 1.79 and a beta of 1.12.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Thursday, April 25th. The industrial products company reported $5.60 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.12 by $0.48. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. The company had revenue of $15.80 billion for the quarter, compared to analyst estimates of $16.07 billion. Sell-side analysts predict that Caterpillar will post 21.61 earnings per share for the current year.

Caterpillar announced that its Board of Directors has initiated a share buyback plan on Wednesday, June 12th that allows the company to repurchase $20.00 billion in shares. This repurchase authorization allows the industrial products company to reacquire up to 12.7% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd will be paid a $1.41 dividend. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend is Monday, July 22nd. This represents a $5.64 dividend on an annualized basis and a dividend yield of 1.61%. Caterpillar’s dividend payout ratio is 25.46%.

Insider Activity

In other Caterpillar news, Director David Maclennan acquired 500 shares of the business’s stock in a transaction dated Friday, May 3rd. The stock was bought at an average price of $337.39 per share, with a total value of $168,695.00. Following the purchase, the director now owns 5,738 shares of the company’s stock, valued at $1,935,943.82. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. In other Caterpillar news, insider Lange Bob De sold 21,847 shares of the stock in a transaction on Monday, May 13th. The shares were sold at an average price of $356.90, for a total transaction of $7,797,194.30. Following the completion of the sale, the insider now owns 71,115 shares of the company’s stock, valued at approximately $25,380,943.50. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director David Maclennan purchased 500 shares of the company’s stock in a transaction on Friday, May 3rd. The shares were purchased at an average cost of $337.39 per share, with a total value of $168,695.00. Following the transaction, the director now directly owns 5,738 shares in the company, valued at $1,935,943.82. The disclosure for this purchase can be found here. In the last 90 days, insiders sold 24,863 shares of company stock valued at $8,837,714. Corporate insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Institutional investors have recently added to or reduced their stakes in the company. Partnership Wealth Management LLC purchased a new stake in Caterpillar during the 4th quarter valued at $26,000. Richardson Financial Services Inc. bought a new position in Caterpillar in the 4th quarter worth $27,000. Thompson Investment Management Inc. bought a new position in Caterpillar in the 1st quarter worth $27,000. Bbjs Financial Advisors LLC bought a new position in Caterpillar in the 2nd quarter worth $28,000. Finally, Financial Connections Group Inc. bought a new position in Caterpillar in the 2nd quarter worth $28,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Caterpillar Company Profile

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.