Caterpillar (NYSE:CAT) Trading Up 0.4% - Should You Buy?

Caterpillar Inc. (NYSE:CAT - Get Free Report) shares were up 0.4% on Friday . The company traded as high as $392.03 and last traded at $388.69. Approximately 266,465 shares traded hands during trading, a decline of 90% from the average daily volume of 2,616,103 shares. The stock had previously closed at $387.06.

Analysts Set New Price Targets

A number of analysts have commented on CAT shares. Bank of America increased their price target on shares of Caterpillar from $376.00 to $434.00 and gave the company a "buy" rating in a research note on Monday, September 30th. Truist Financial raised their target price on shares of Caterpillar from $399.00 to $456.00 and gave the company a "buy" rating in a research note on Wednesday, October 9th. StockNews.com downgraded Caterpillar from a "buy" rating to a "hold" rating in a research report on Tuesday, September 24th. JPMorgan Chase & Co. raised their price objective on Caterpillar from $435.00 to $500.00 and gave the company an "overweight" rating in a research report on Monday, October 14th. Finally, Barclays increased their price target on Caterpillar from $315.00 to $335.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 7th. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have issued a buy rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $355.50.

Caterpillar Stock Performance

The stock has a 50 day simple moving average of $368.57 and a 200 day simple moving average of $350.95. The stock has a market cap of $188.74 billion, a P/E ratio of 17.42, a price-to-earnings-growth ratio of 1.85 and a beta of 1.10. The company has a current ratio of 1.28, a quick ratio of 0.78 and a debt-to-equity ratio of 1.39.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly 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 the consensus estimate of $16.91 billion. During the same quarter in the previous year, the firm earned $5.55 earnings per share. Caterpillar's revenue for the quarter was down 3.6% compared to the same quarter last year. On average, equities analysts expect that Caterpillar Inc. will post 21.91 earnings per share for the current year.

Caterpillar Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 20th. Shareholders of record on Monday, October 21st will be given a dividend of $1.41 per share. The ex-dividend date is Monday, October 21st. This represents a $5.64 annualized dividend and a yield of 1.46%. Caterpillar's dividend payout ratio is currently 25.46%.

Insider Buying and Selling at Caterpillar

In related news, insider Cheryl H. Johnson sold 2,975 shares of the company's stock in a transaction on Thursday, August 22nd. The stock was sold at an average price of $342.48, for a total transaction of $1,018,878.00. Following the completion of the sale, the insider now directly owns 15,615 shares in the company, valued at $5,347,825.20. This represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In related news, insider Cheryl H. Johnson sold 2,975 shares of the stock in a transaction that occurred 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 completion of the transaction, the insider now owns 15,615 shares of the company's stock, valued at $5,347,825.20. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Anthony D. Fassino sold 3,185 shares of the business's stock in a transaction on Friday, August 30th. The stock was sold at an average price of $351.36, for a total transaction of $1,119,081.60. Following the sale, the insider now directly owns 33,442 shares in the company, valued at approximately $11,750,181.12. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.33% of the company's stock.

Institutional Trading of Caterpillar

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Fairman Group LLC acquired a new position in Caterpillar in the 1st quarter valued at approximately $29,000. Bbjs Financial Advisors LLC bought a new position in Caterpillar during the 2nd quarter worth $28,000. Financial Connections Group Inc. acquired a new position in Caterpillar during the 2nd quarter worth about $28,000. Fairscale Capital LLC bought a new stake in shares of Caterpillar in the 2nd quarter valued at about $36,000. Finally, POM Investment Strategies LLC increased its stake in shares of Caterpillar by 2,160.0% in the second quarter. POM Investment Strategies LLC now owns 113 shares of the industrial products company's stock valued at $38,000 after buying an additional 108 shares during the period. 70.98% of the stock is currently owned by 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.