Caterpillar Inc. (NYSE:CAT) reached a new 52-week high during trading on Tuesday, following an upgrade from Citigroup, which raised its price target for the stock from $500.00 to $540.00. The stock peaked at $473.24 before closing at $471.97, with approximately 3,179,376 shares traded. This increase follows a previous close of $466.54.
Analysts have been active in reassessing Caterpillar’s stock. On August 6, Bank of America lifted its price objective from $460.00 to $495.00, maintaining a “buy” rating. Melius Research upgraded the stock from “hold” to “strong-buy,” setting a target of $500.00 on July 9. Similarly, Barclays adjusted its price goal from $383.00 to $425.00, issuing an “equal weight” rating on August 6. Furthermore, DA Davidson raised its price target from $331.00 to $388.00 on July 22 and assigned a “neutral” rating.
Currently, analysts have varied opinions on Caterpillar’s stock, with two rating it as a strong buy, eleven as a buy, and five as hold. According to data from MarketBeat, the stock holds an average rating of “Moderate Buy” and a consensus price target of $462.87.
Recent Insider Transactions
In related news, Director Susan C. Schwab sold 2,324 shares of Caterpillar on August 15, at an average price of $410.00, totaling $952,840.00. This transaction reduced her ownership by 25.15%, leaving her with 6,917 shares valued at approximately $2,835,970. Additionally, Chairman Donald J. Umpleby III sold 17,168 shares on September 2, at an average price of $412.87, resulting in a total of $7,088,152.16. His remaining holdings stand at 482,505 shares, worth about $199.2 million.
Over the last quarter, company insiders have sold a total of 21,653 shares valued at $8,943,642. Currently, insiders own 0.33% of the company’s stock.
Institutional Investor Activity
Several institutional investors and hedge funds have recently adjusted their positions in Caterpillar. Kilter Group LLC acquired a new stake in the company in the second quarter, valued at approximately $27,000. Mid American Wealth Advisory Group Inc. also bought into Caterpillar during the same period, worth about $28,000.
In a notable increase, Compass Financial Services Inc. raised its holdings by 49.2%, now owning 94 shares worth $31,000. Other firms, including Family Legacy Financial Solutions LLC and RiverPark Advisors LLC, also made new investments, each valued around $32,000. Overall, institutional investors own 70.98% of Caterpillar’s stock.
Caterpillar has a market capitalization of approximately $221.11 billion, with a price-to-earnings (P/E) ratio of 24.01 and a price-to-earnings growth (P/E/G) ratio of 2.84. The stock’s performance metrics include a debt-to-equity ratio of 1.50 and a current ratio of 1.34. The fifty-day simple moving average stands at $426.53, while the 200-day average is at $370.38.
On August 5, Caterpillar reported its earnings for the previous quarter, showing an earnings per share (EPS) of $4.72, which fell short of the analysts’ consensus estimate of $4.88 by $0.16. The firm reported a net margin of 14.95% and a return on equity of 48.95%, with quarterly revenue of $16.57 billion exceeding expectations of $16.14 billion. Year-over-year, revenue decreased by 0.7%.
Looking ahead, equity research analysts predict Caterpillar will achieve an EPS of 19.86 for the current fiscal year. Caterpillar Inc. specializes in manufacturing and selling construction and mining equipment, engines, and industrial machinery, serving a global market.
