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

Caterpillar (NYSE:CAT) was upgraded by equities research analysts at StockNews.com from a “hold” rating to a “buy” rating in a note issued to investors on Thursday.

Other analysts also recently issued research reports about the stock. JPMorgan Chase & Co. raised their price target on shares of Caterpillar from $385.00 to $435.00 and gave the stock an “overweight” rating in a report on Tuesday, April 16th. HSBC upped their price target on Caterpillar from $330.00 to $360.00 and gave the company a “hold” rating in a research note on Tuesday, April 30th. Stifel Nicolaus downgraded Caterpillar from a “buy” rating to a “hold” rating and raised their price objective for the stock from $293.00 to $350.00 in a research report on Friday, April 26th. TD Cowen upped their target price on shares of Caterpillar from $338.00 to $340.00 and gave the company a “buy” rating in a research report on Friday, April 26th. Finally, Raymond James initiated coverage on shares of Caterpillar in a research report on Friday, June 28th. They set a “market perform” rating for the company. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and nine have given a buy rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $329.63.

Caterpillar Trading Up 1.8 %

Shares of CAT stock opened at $350.48 on Thursday. The firm has a market capitalization of $171.40 billion, a P/E ratio of 15.82, a PEG ratio of 1.74 and a beta of 1.12. Caterpillar has a fifty-two week low of $223.76 and a fifty-two week high of $382.01. The stock’s fifty day moving average is $336.58 and its two-hundred day moving average is $335.67. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.83 and a current ratio of 1.35.

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 analysts’ consensus estimates of $5.12 by $0.48. Caterpillar had a return on equity of 58.61% and a net margin of 16.79%. The business had revenue of $15.80 billion during the quarter, compared to analyst estimates of $16.07 billion. Research analysts expect that Caterpillar will post 21.61 earnings per share for the current fiscal year.

Caterpillar announced that its board has approved a stock repurchase 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 stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other Caterpillar news, Director David Maclennan bought 500 shares of the firm’s stock in a transaction dated Friday, May 3rd. The stock was acquired at an average price of $337.39 per share, for a total transaction of $168,695.00. Following the completion of the purchase, the director now owns 5,738 shares of the company’s stock, valued at $1,935,943.82. The acquisition was disclosed in a filing with the SEC, which is available through this link. In related news, Director David Maclennan purchased 500 shares of the firm’s stock in a transaction that occurred on Friday, May 3rd. The stock was purchased at an average cost of $337.39 per share, with a total value of $168,695.00. Following the completion of the acquisition, the director now directly owns 5,738 shares in the company, valued at $1,935,943.82. The acquisition was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Lange Bob De sold 21,847 shares of the business’s 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 transaction, the insider now directly owns 71,115 shares in the company, valued at $25,380,943.50. The disclosure for this sale can be found here. In the last three months, insiders have sold 24,863 shares of company stock valued at $8,837,714. Insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Institutional investors have recently made changes to their positions in the stock. Private Trust Co. NA lifted its position in shares of Caterpillar by 0.3% during the 1st quarter. Private Trust Co. NA now owns 10,695 shares of the industrial products company’s stock valued at $3,919,000 after acquiring an additional 30 shares during the period. Southland Equity Partners LLC grew its holdings in Caterpillar by 4.0% in the first quarter. Southland Equity Partners LLC now owns 784 shares of the industrial products company’s stock valued at $287,000 after purchasing an additional 30 shares during the last quarter. Davis Investment Partners LLC increased its position in shares of Caterpillar by 2.1% in the first quarter. Davis Investment Partners LLC now owns 1,454 shares of the industrial products company’s stock valued at $541,000 after buying an additional 30 shares in the last quarter. Hilltop National Bank boosted its position in shares of Caterpillar by 1.2% in the 2nd quarter. Hilltop National Bank now owns 2,636 shares of the industrial products company’s stock worth $878,000 after buying an additional 31 shares in the last quarter. Finally, Exchange Capital Management Inc. grew its stake in Caterpillar by 3.3% in the 1st quarter. Exchange Capital Management Inc. now owns 1,016 shares of the industrial products company’s stock valued at $372,000 after acquiring an additional 32 shares during the last quarter. 70.98% of the stock is currently owned by hedge funds and other 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.