Caterpillar Inc. (NYSE:CAT) Receives $337.38 Consensus Target Price from Analysts

Shares of Caterpillar Inc. (NYSE:CAT) have been assigned an average recommendation of “Hold” from the eighteen research firms that are currently covering the stock, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and seven have issued a buy rating on the company. The average twelve-month price target among brokers that have updated their coverage on the stock in the last year is $337.38.

A number of research analysts have recently issued reports on CAT shares. Barclays upped their price target on Caterpillar from $315.00 to $335.00 and gave the company an “equal weight” rating in a report on Wednesday, August 7th. Citigroup initiated coverage on shares of Caterpillar in a report on Wednesday, June 26th. They set a “buy” rating and a $380.00 price target on the stock. Raymond James initiated coverage on shares of Caterpillar in a research report on Friday, June 28th. They set a “market perform” rating on the stock. StockNews.com raised shares of Caterpillar from a “hold” rating to a “buy” rating in a research report on Saturday, August 10th. Finally, UBS Group increased their price target on Caterpillar from $270.00 to $285.00 and gave the company a “sell” rating in a report on Wednesday, August 7th.

Insider Transactions at Caterpillar

In related news, insider Cheryl H. Johnson sold 1,508 shares of Caterpillar stock in a transaction dated Tuesday, July 16th. The stock was sold at an average price of $350.00, for a total value of $527,800.00. Following the completion of the sale, the insider now directly owns 18,515 shares in the company, valued at $6,480,250. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate 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. Partnership Wealth Management LLC purchased a new stake in shares of Caterpillar during the 4th quarter worth $26,000. Richardson Financial Services Inc. purchased a new stake in shares of Caterpillar during the fourth quarter valued at about $27,000. Thompson Investment Management Inc. bought a new stake in shares of Caterpillar in the 1st quarter valued at about $27,000. Bbjs Financial Advisors LLC purchased a new position in shares of Caterpillar in the 2nd quarter worth approximately $28,000. Finally, Financial Connections Group Inc. bought a new position in shares of Caterpillar during the 2nd quarter worth approximately $28,000. Institutional investors own 70.98% of the company’s stock.

Caterpillar Price Performance

CAT opened at $343.48 on Monday. The firm has a market cap of $167.98 billion, a PE ratio of 15.51, a P/E/G ratio of 1.72 and a beta of 1.12. The stock has a 50-day moving average price of $334.48 and a 200-day moving average price of $340.83. Caterpillar has a 1 year low of $223.76 and a 1 year high of $382.01. The company has a debt-to-equity ratio of 1.41, a current ratio of 1.35 and a quick ratio of 0.83.

Caterpillar (NYSE:CAT) last issued its earnings results on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share (EPS) for the quarter, topping the consensus estimate 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 prior year, the firm posted $5.55 earnings per share. The business’s revenue was down 3.6% on a year-over-year basis. Sell-side analysts predict that Caterpillar will post 21.57 earnings per share for the current fiscal year.

Caterpillar announced that its Board of Directors has authorized a stock buyback program on Wednesday, June 12th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the industrial products company to purchase up to 12.7% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 20th. Investors of record on Monday, July 22nd will be paid a $1.41 dividend. This represents a $5.64 annualized dividend and a yield of 1.64%. The ex-dividend date is Monday, July 22nd. This is an increase from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s dividend payout ratio (DPR) is currently 25.46%.

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.