Caterpillar (NYSE:CAT) Hits New 1-Year Low - What's Next?

Caterpillar Inc. (NYSE:CAT - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Thursday . The stock traded as low as $305.00 and last traded at $305.75, with a volume of 3735052 shares. The stock had previously closed at $334.66.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on CAT. Citigroup cut their price target on shares of Caterpillar from $430.00 to $320.00 and set a "buy" rating on the stock in a report on Tuesday. UBS Group raised Caterpillar from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $355.00 to $385.00 in a report on Monday, February 3rd. DA Davidson boosted their price target on Caterpillar from $350.00 to $357.00 and gave the stock a "neutral" rating in a research note on Tuesday, February 4th. Morgan Stanley reduced their price objective on Caterpillar from $330.00 to $300.00 and set an "underweight" rating for the company in a report on Friday, January 31st. Finally, StockNews.com cut shares of Caterpillar from a "buy" rating to a "hold" rating in a research note on Tuesday, February 25th. Two analysts have rated the stock with a sell rating, eight have assigned a hold rating and nine have issued a buy rating to the company. According to MarketBeat.com, Caterpillar presently has a consensus rating of "Hold" and a consensus price target of $373.20.

Caterpillar Price Performance

The stock has a market capitalization of $129.93 billion, a PE ratio of 12.32, a price-to-earnings-growth ratio of 1.87 and a beta of 1.21. The company has a current ratio of 1.42, a quick ratio of 0.89 and a debt-to-equity ratio of 1.40. The firm has a 50 day moving average price of $339.71 and a 200 day moving average price of $369.39.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings data on Thursday, January 30th. The industrial products company reported $5.14 EPS for the quarter, topping the consensus estimate of $4.97 by $0.17. Caterpillar had a return on equity of 58.18% and a net margin of 16.65%. Research analysts anticipate that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Insider Buying and Selling at Caterpillar

In other news, CFO Andrew R. J. Bonfield sold 10,000 shares of the business's stock in a transaction dated Thursday, January 16th. The stock was sold at an average price of $380.09, for a total value of $3,800,900.00. Following the transaction, the chief financial officer now directly owns 45,182 shares in the company, valued at $17,173,226.38. The trade was a 18.12 % 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 company's stock in a transaction dated Tuesday, February 4th. The stock was acquired at an average cost of $365.57 per share, with a total value of $36,557.00. Following the purchase, the director now owns 3,053 shares of the company's stock, valued at approximately $1,116,085.21. This trade represents a 3.39 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 0.29% of the company's stock.

Hedge Funds Weigh In On Caterpillar

Several hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. lifted its stake in Caterpillar by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 46,809,540 shares of the industrial products company's stock worth $16,980,629,000 after purchasing an additional 284,366 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of Caterpillar by 2.3% in the fourth quarter. Geode Capital Management LLC now owns 10,449,770 shares of the industrial products company's stock worth $3,790,841,000 after purchasing an additional 236,315 shares during the last quarter. Fisher Asset Management LLC lifted its position in shares of Caterpillar by 1.4% in the fourth quarter. Fisher Asset Management LLC now owns 9,081,775 shares of the industrial products company's stock worth $3,294,505,000 after buying an additional 129,143 shares in the last quarter. Northern Trust Corp grew its holdings in Caterpillar by 11.8% during the 4th quarter. Northern Trust Corp now owns 6,847,330 shares of the industrial products company's stock valued at $2,483,937,000 after buying an additional 724,477 shares in the last quarter. Finally, Norges Bank bought a new stake in Caterpillar in the 4th quarter worth approximately $2,184,364,000. Hedge funds and other institutional investors own 70.98% of the company's stock.

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.