Caterpillar (NYSE:CAT) Stock Rating Upgraded by StockNews.com

StockNews.com upgraded shares of Caterpillar (NYSE:CAT) from a hold rating to a buy rating in a research report sent to investors on Saturday.

Several other equities research analysts have also weighed in on CAT. Truist Financial reiterated a buy rating and issued a $399.00 price objective (up from $390.00) on shares of Caterpillar in a research note on Wednesday, August 7th. Oppenheimer reiterated a market perform rating on shares of Caterpillar in a research note on Thursday, April 18th. Bank of America reduced their target price on shares of Caterpillar from $385.00 to $376.00 and set a buy rating on the stock in a research note on Wednesday, August 7th. JPMorgan Chase & Co. lifted their price target on shares of Caterpillar from $385.00 to $435.00 and gave the company an overweight rating in a report on Tuesday, April 16th. Finally, The Goldman Sachs Group upped their price objective on shares of Caterpillar from $357.00 to $408.00 and gave the stock a buy rating in a research note on Tuesday, April 16th. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and eight have assigned a buy rating to the company. According to MarketBeat.com, the company presently has an average rating of Hold and an average price target of $337.38.

Caterpillar Trading Up 0.8 %

Shares of CAT opened at $338.80 on Friday. The stock’s 50-day moving average price is $333.68 and its 200 day moving average price is $340.00. The company has a quick ratio of 0.83, a current ratio of 1.35 and a debt-to-equity ratio of 1.41. Caterpillar has a 12-month low of $223.76 and a 12-month high of $382.01. The firm has a market capitalization of $165.69 billion, a price-to-earnings ratio of 15.30, a P/E/G ratio of 1.72 and a beta of 1.12.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share for the quarter, topping analysts’ consensus estimates of $5.53 by $0.46. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. The firm had revenue of $16.69 billion for the quarter, compared to the consensus estimate of $16.91 billion. During the same quarter in the previous year, the company earned $5.55 earnings per share. The business’s revenue was down 3.6% compared to the same quarter last year. As a group, research analysts predict that Caterpillar will post 21.57 earnings per share for the current year.

Caterpillar declared that its Board of Directors has authorized a stock buyback plan on Wednesday, June 12th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the industrial products company to purchase up to 12.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Caterpillar Increases Dividend

The firm also recently announced 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 represents a $5.64 annualized dividend and a dividend yield of 1.66%. The ex-dividend date of this dividend is Monday, July 22nd. This is a positive change from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s dividend payout ratio (DPR) is 25.46%.

Insider Buying and Selling at Caterpillar

In other news, insider Cheryl H. Johnson sold 1,508 shares of the stock in a transaction on Tuesday, July 16th. The stock was sold at an average price of $350.00, for a total value of $527,800.00. Following the transaction, the insider now owns 18,515 shares of the company’s stock, valued at approximately $6,480,250. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Axxcess Wealth Management LLC increased its stake in Caterpillar by 20.0% during the 4th quarter. Axxcess Wealth Management LLC now owns 21,343 shares of the industrial products company’s stock worth $6,310,000 after purchasing an additional 3,558 shares in the last quarter. Acadian Asset Management LLC raised its holdings in shares of Caterpillar by 17.2% during the first quarter. Acadian Asset Management LLC now owns 9,037 shares of the industrial products company’s stock worth $3,308,000 after acquiring an additional 1,327 shares during the period. Catalyst Financial Partners LLC lifted its position in Caterpillar by 1.5% in the 4th quarter. Catalyst Financial Partners LLC now owns 4,295 shares of the industrial products company’s stock valued at $1,270,000 after acquiring an additional 63 shares in the last quarter. Diversify Advisory Services LLC acquired a new position in Caterpillar in the 1st quarter worth $926,000. Finally, Aigen Investment Management LP bought a new position in Caterpillar during the 4th quarter worth about $222,000. 70.98% of the stock is owned by institutional investors.

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.