Caterpillar (CAT) Stock Rating Reaffirmed by Cleveland Research

Cleveland Research reiterated their hold rating on shares of Caterpillar (NYSE:CAT) in a report published on Friday.

CAT has been the topic of several other reports. Royal Bank of Canada raised their price target on Caterpillar to $166.00 and gave the company a sector perform rating in a research report on Tuesday, July 31st. Zacks Investment Research downgraded Caterpillar from a strong-buy rating to a hold rating in a research report on Tuesday, June 26th. OTR Global downgraded Caterpillar to a positive rating in a research report on Friday, September 21st. BMO Capital Markets lowered their price target on Caterpillar from $195.00 to $185.00 and set an outperform rating on the stock in a research report on Tuesday, July 31st. They noted that the move was a valuation call. Finally, Citigroup raised Caterpillar to an outperform rating in a research report on Friday, September 21st. Two equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating, sixteen have given a buy rating and two have assigned a strong buy rating to the stock. Caterpillar presently has an average rating of Buy and a consensus price target of $171.44.

Shares of NYSE:CAT traded down $3.60 during midday trading on Friday, hitting $131.32. The company’s stock had a trading volume of 7,032,298 shares, compared to its average volume of 4,963,435. The company has a market cap of $80.71 billion, a P/E ratio of 19.09, a P/E/G ratio of 0.75 and a beta of 1.38. Caterpillar has a fifty-two week low of $129.43 and a fifty-two week high of $173.24. The company has a debt-to-equity ratio of 1.59, a quick ratio of 0.97 and a current ratio of 1.37.

Caterpillar (NYSE:CAT) last issued its quarterly earnings results on Monday, July 30th. The industrial products company reported $2.97 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.73 by $0.24. The company had revenue of $14.01 billion for the quarter, compared to the consensus estimate of $14.09 billion. Caterpillar had a return on equity of 40.60% and a net margin of 6.12%. The firm’s revenue was up 23.7% compared to the same quarter last year. During the same period last year, the business posted $1.49 earnings per share. As a group, equities analysts predict that Caterpillar will post 11.65 EPS for the current year.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, November 20th. Investors of record on Monday, October 22nd will be given a dividend of $0.86 per share. This represents a $3.44 dividend on an annualized basis and a yield of 2.62%. The ex-dividend date is Friday, October 19th. Caterpillar’s dividend payout ratio (DPR) is presently 50.00%.

In related news, insider Denise C. Johnson sold 35,051 shares of Caterpillar stock in a transaction dated Tuesday, October 2nd. The stock was sold at an average price of $154.18, for a total transaction of $5,404,163.18. Following the sale, the insider now directly owns 22,826 shares of the company’s stock, valued at $3,519,312.68. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. 0.36% of the stock is owned by company insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Jennison Associates LLC boosted its holdings in Caterpillar by 5.4% during the second quarter. Jennison Associates LLC now owns 6,442,611 shares of the industrial products company’s stock valued at $874,069,000 after purchasing an additional 327,470 shares in the last quarter. Sumitomo Mitsui Trust Holdings Inc. boosted its holdings in Caterpillar by 7.0% during the second quarter. Sumitomo Mitsui Trust Holdings Inc. now owns 2,239,504 shares of the industrial products company’s stock valued at $303,834,000 after purchasing an additional 145,707 shares in the last quarter. Dimensional Fund Advisors LP boosted its holdings in Caterpillar by 7.6% during the second quarter. Dimensional Fund Advisors LP now owns 2,147,234 shares of the industrial products company’s stock valued at $291,325,000 after purchasing an additional 151,960 shares in the last quarter. Swiss National Bank boosted its holdings in Caterpillar by 3.5% during the second quarter. Swiss National Bank now owns 1,976,016 shares of the industrial products company’s stock valued at $268,086,000 after purchasing an additional 67,200 shares in the last quarter. Finally, Janus Henderson Group PLC boosted its holdings in Caterpillar by 23.6% during the second quarter. Janus Henderson Group PLC now owns 1,957,489 shares of the industrial products company’s stock valued at $265,581,000 after purchasing an additional 374,038 shares in the last quarter. 66.63% of the stock is currently owned by institutional investors.

Caterpillar Company Profile

Caterpillar Inc manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives for construction, resource, and energy and transportation industries. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact truck and multi-terrain loaders, forestry excavators, feller bunchers, harvesters, knuckleboom loaders, motorgraders, pipelayers, road reclaimers, site prep tractors, skidders, skid steer loaders, telehandlers, track-type loaders, wheel excavators, and track-type tractors.

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Analyst Recommendations for Caterpillar (NYSE:CAT)

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