Caterpillar (NYSE:CAT) Shares Up 1.1% – Still a Buy?

Shares of Caterpillar Inc. (NYSE:CAT) were up 1.1% during mid-day trading on Wednesday . The company traded as high as $393.35 and last traded at $392.23. Approximately 377,668 shares were traded during trading, a decline of 86% from the average daily volume of 2,641,310 shares. The stock had previously closed at $387.99.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on CAT shares. Truist Financial lifted their price target on Caterpillar from $399.00 to $456.00 and gave the company a “buy” rating in a research note on Wednesday, October 9th. UBS Group lifted their price target on Caterpillar from $270.00 to $285.00 and gave the company a “sell” rating in a research note on Wednesday, August 7th. Raymond James assumed coverage on Caterpillar in a research note on Friday, June 28th. They set a “market perform” rating for the company. Morgan Stanley downgraded Caterpillar from an “equal weight” rating to an “underweight” rating and cut their target price for the stock from $349.00 to $332.00 in a research note on Monday. Finally, Barclays boosted their target price on Caterpillar from $315.00 to $335.00 and gave the stock an “equal weight” rating in a research note on Wednesday, August 7th. Three research analysts have rated the stock with a sell rating, nine have given a hold rating and seven have assigned a buy rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $355.50.

Caterpillar Price Performance

The company has a market cap of $192.48 billion, a P/E ratio of 17.74, a PEG ratio of 1.85 and a beta of 1.10. The business’s fifty day moving average is $360.22 and its 200 day moving average is $349.61. The company has a current ratio of 1.28, a quick ratio of 0.78 and a debt-to-equity ratio of 1.39.

Caterpillar (NYSE:CAT) last released its quarterly earnings data on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.53 by $0.46. The company had revenue of $16.69 billion for the quarter, compared to analyst estimates of $16.91 billion. Caterpillar had a return on equity of 59.88% and a net margin of 16.58%. The firm’s revenue for the quarter was down 3.6% compared to the same quarter last year. During the same period in the previous year, the company posted $5.55 EPS. As a group, sell-side analysts anticipate that Caterpillar Inc. will post 21.91 EPS for the current year.

Caterpillar Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, November 20th. Shareholders of record on Monday, October 21st will be issued a $1.41 dividend. This represents a $5.64 annualized dividend and a yield of 1.43%. The ex-dividend date of this dividend is Monday, October 21st. Caterpillar’s payout ratio is 25.46%.

Insider Transactions at Caterpillar

In other Caterpillar news, Director Gerald Johnson acquired 100 shares of the business’s stock in a transaction dated Wednesday, September 4th. The stock was bought at an average price of $338.59 per share, with a total value of $33,859.00. Following the completion of the acquisition, the director now owns 2,842 shares of the company’s stock, valued at $962,272.78. This trade represents a 0.00 % increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. In other Caterpillar news, insider Cheryl H. Johnson sold 2,975 shares of the stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $342.48, for a total transaction of $1,018,878.00. Following the transaction, the insider now directly owns 15,615 shares in the company, valued at $5,347,825.20. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Gerald Johnson acquired 100 shares of the business’s stock in a transaction dated Wednesday, September 4th. The stock was acquired at an average cost of $338.59 per share, with a total value of $33,859.00. Following the purchase, the director now directly owns 2,842 shares in the company, valued at $962,272.78. This represents a 0.00 % increase in their position. The disclosure for this purchase can be found here. Insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

A number of large investors have recently bought and sold shares of CAT. Richardson Financial Services Inc. purchased a new position in Caterpillar in the 4th quarter worth approximately $27,000. Thompson Investment Management Inc. purchased a new position in Caterpillar in the 1st quarter worth approximately $27,000. Bbjs Financial Advisors LLC purchased a new position in shares of Caterpillar during the second quarter valued at approximately $28,000. Financial Connections Group Inc. bought a new position in shares of Caterpillar during the second quarter valued at approximately $28,000. Finally, Fairman Group LLC purchased a new stake in Caterpillar in the first quarter worth $29,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

About Caterpillar

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.