Caterpillar Inc. (NYSE:CAT) Given Consensus Recommendation of "Hold" by Brokerages

Caterpillar Inc. (NYSE:CAT - Get Free Report) has been assigned a consensus rating of "Hold" from the eighteen analysts that are presently covering the stock, Marketbeat reports. Two research analysts have rated the stock with a sell recommendation, nine have assigned a hold recommendation and seven have given a buy recommendation to the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $339.94.

CAT has been the subject of a number of research analyst reports. Barclays increased their target price on Caterpillar from $315.00 to $335.00 and gave the company an "equal weight" rating in a report on Wednesday, August 7th. Evercore ISI cut their price target on Caterpillar from $338.00 to $321.00 and set an "in-line" rating for the company in a report on Monday, August 19th. StockNews.com cut Caterpillar from a "buy" rating to a "hold" rating in a report on Tuesday, September 24th. Raymond James started coverage on Caterpillar in a report on Friday, June 28th. They issued a "market perform" rating for the company. Finally, UBS Group increased their price objective on Caterpillar from $270.00 to $285.00 and gave the stock a "sell" rating in a research report on Wednesday, August 7th.

Caterpillar Price Performance

NYSE CAT traded up $1.27 during trading hours on Tuesday, reaching $392.39. The company's stock had a trading volume of 2,090,426 shares, compared to its average volume of 2,682,484. The firm has a market capitalization of $191.90 billion, a price-to-earnings ratio of 17.65, a P/E/G ratio of 1.73 and a beta of 1.10. Caterpillar has a 1-year low of $223.76 and a 1-year high of $397.22. The company has a debt-to-equity ratio of 1.39, a current ratio of 1.28 and a quick ratio of 0.78. The company's 50-day moving average is $347.54 and its two-hundred day moving average is $346.82.

Caterpillar (NYSE:CAT - Get Free Report) last announced its earnings results on Tuesday, August 6th. The industrial products company reported $5.99 EPS for the quarter, beating analysts' consensus estimates of $5.53 by $0.46. Caterpillar had a return on equity of 59.88% and a net margin of 16.58%. The business had revenue of $16.69 billion during the quarter, compared to analysts' expectations of $16.91 billion. During the same quarter in the prior year, the firm earned $5.55 earnings per share. The business's revenue was down 3.6% compared to the same quarter last year. On average, equities analysts predict that Caterpillar will post 21.91 EPS for the current year.

Caterpillar declared that its board has initiated a share buyback program on Wednesday, June 12th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the industrial products company to buy up to 12.7% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's leadership believes its stock is undervalued.

Insider Buying and Selling

In other news, Director Gerald Johnson purchased 100 shares of the firm's stock in a transaction dated Wednesday, September 4th. The shares were acquired at an average price of $338.59 per share, with a total value of $33,859.00. Following the purchase, the director now directly owns 2,842 shares of the company's stock, valued at $962,272.78. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. In related news, Director Gerald Johnson acquired 100 shares of the firm's stock in a transaction that occurred on Wednesday, September 4th. The shares were acquired at an average price of $338.59 per share, with a total value of $33,859.00. Following the completion of the purchase, the director now directly owns 2,842 shares in the company, valued at $962,272.78. The purchase was disclosed in a document filed with the SEC, which is available through this link. Also, insider Cheryl H. Johnson sold 2,975 shares of the stock in a transaction on Thursday, August 22nd. The shares were sold at an average price of $342.48, for a total value of $1,018,878.00. Following the sale, the insider now directly owns 15,615 shares in the company, valued at approximately $5,347,825.20. The disclosure for this sale can be found here. Insiders have sold a total of 7,668 shares of company stock valued at $2,665,760 over the last quarter. 0.33% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Caterpillar

Several large investors have recently added to or reduced their stakes in the business. Acadian Asset Management LLC lifted its stake in shares of Caterpillar by 17.2% in the 1st quarter. Acadian Asset Management LLC now owns 9,037 shares of the industrial products company's stock valued at $3,308,000 after purchasing an additional 1,327 shares in the last quarter. Diversify Advisory Services LLC acquired a new position in shares of Caterpillar in the 1st quarter valued at about $926,000. Natixis Advisors LLC lifted its stake in shares of Caterpillar by 3.5% in the 2nd quarter. Natixis Advisors LLC now owns 278,259 shares of the industrial products company's stock valued at $92,688,000 after purchasing an additional 9,321 shares in the last quarter. Bailard Inc. lifted its stake in shares of Caterpillar by 3.1% in the 2nd quarter. Bailard Inc. now owns 13,435 shares of the industrial products company's stock valued at $4,475,000 after purchasing an additional 398 shares in the last quarter. Finally, M&G Plc acquired a new position in shares of Caterpillar in the 1st quarter valued at about $15,009,000. 70.98% of the stock is currently 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.