Caterpillar (CAT) Lifted to Sell at ValuEngine

ValuEngine upgraded shares of Caterpillar (NYSE:CAT) from a strong sell rating to a sell rating in a report released on Thursday morning.

A number of other analysts have also weighed in on CAT. Goldman Sachs Group lowered Caterpillar from a conviction-buy rating to a buy rating in a research report on Monday, July 16th. Zacks Investment Research raised Caterpillar from a hold rating to a buy rating and set a $155.00 price objective on the stock in a research report on Tuesday, July 17th. William Blair reaffirmed a hold rating on shares of Caterpillar in a research report on Monday, July 30th. Barclays lowered Caterpillar from an overweight rating to an equal weight rating and cut their price objective for the stock from $170.00 to $155.00 in a research report on Tuesday, July 31st. Finally, Royal Bank of Canada upped their price objective on Caterpillar to $166.00 and gave the stock a sector perform rating in a research report on Tuesday, July 31st. Two research analysts have rated the stock with a sell rating, twelve have issued a hold rating, fifteen have given a buy rating and two have issued a strong buy rating to the company’s stock. Caterpillar has a consensus rating of Buy and an average price target of $158.55.

Shares of Caterpillar stock traded up $1.09 during trading hours on Thursday, reaching $125.79. 7,680,888 shares of the company were exchanged, compared to its average volume of 8,687,015. Caterpillar has a 1 year low of $112.06 and a 1 year high of $173.24. The company has a current ratio of 1.48, a quick ratio of 1.02 and a debt-to-equity ratio of 1.60. The firm has a market capitalization of $74.23 billion, a P/E ratio of 18.28, a P/E/G ratio of 0.69 and a beta of 1.58.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Tuesday, October 23rd. The industrial products company reported $2.86 earnings per share for the quarter, topping analysts’ consensus estimates of $2.83 by $0.03. Caterpillar had a return on equity of 44.13% and a net margin of 7.13%. The business had revenue of $13.51 billion for the quarter, compared to analyst estimates of $13.28 billion. During the same quarter in the prior year, the company earned $1.95 earnings per share. The company’s revenue was up 18.4% on a year-over-year basis. Sell-side analysts predict that Caterpillar will post 11.64 earnings per share 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 paid a dividend of $0.86 per share. The ex-dividend date of this dividend is Friday, October 19th. This represents a $3.44 dividend on an annualized basis and a dividend yield of 2.73%. Caterpillar’s payout ratio is currently 50.00%.

In related news, insider Lange Bob De acquired 1,080 shares of the firm’s stock in a transaction on Friday, October 26th. The stock was bought at an average price of $115.58 per share, for a total transaction of $124,826.40. Following the completion of the purchase, the insider now directly owns 11,310 shares of the company’s stock, valued at approximately $1,307,209.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Denise C. Johnson sold 35,051 shares of the company’s stock in a transaction on Tuesday, October 2nd. The shares were sold at an average price of $154.18, for a total transaction of $5,404,163.18. Following the completion of the transaction, the insider now owns 22,826 shares of the company’s stock, valued at approximately $3,519,312.68. The disclosure for this sale can be found here. Insiders own 0.36% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Cerebellum GP LLC acquired a new stake in shares of Caterpillar during the second quarter worth about $168,000. Gulf International Bank UK Ltd boosted its stake in shares of Caterpillar by 2.6% during the second quarter. Gulf International Bank UK Ltd now owns 193,095 shares of the industrial products company’s stock worth $26,197,000 after buying an additional 4,857 shares during the period. Bath Savings Trust Co boosted its stake in shares of Caterpillar by 36.3% during the second quarter. Bath Savings Trust Co now owns 2,870 shares of the industrial products company’s stock worth $389,000 after buying an additional 764 shares during the period. DnB Asset Management AS boosted its stake in shares of Caterpillar by 9.4% during the second quarter. DnB Asset Management AS now owns 96,697 shares of the industrial products company’s stock worth $13,119,000 after buying an additional 8,300 shares during the period. Finally, Abner Herrman & Brock LLC acquired a new stake in shares of Caterpillar during the second quarter worth about $6,049,000. Institutional investors own 66.54% of the company’s stock.

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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