Caterpillar (NYSE:CAT) Trading Down 4.3% – Time to Sell?

Caterpillar Inc. (NYSE:CAT) dropped 4.3% during trading on Monday . The stock traded as low as $772.86 and last traded at $783.6080. Approximately 2,391,803 shares were traded during trading, a decline of 16% from the average session volume of 2,856,323 shares. The stock had previously closed at $818.57.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analyst support remains favorable. Erste Group Bank raised its earnings estimates for Caterpillar, while a separate analyst upgrade previously contributed to stronger trading in the shares. Erste Group Bank Lifts Earnings Estimates for Caterpillar Caterpillar Trading Up Following Analyst Upgrade
• Positive Sentiment: CAT received new buy-oriented recognition from Zacks. Caterpillar was added to Zacks’ Rank #1 Strong Buy list and was also highlighted as a wide-moat company with durable competitive advantages and favorable long-term demand prospects. New Strong Buy Stocks Top-Ranked Wide Moat Stocks
• Positive Sentiment: A new technology partnership could support Caterpillar’s long-term growth. The company is partnering with FieldAI on physical artificial intelligence, robotics and digital-twin technology, potentially improving construction and industrial equipment capabilities. Caterpillar and FieldAI Partnership
• Neutral Sentiment: A lifestyle article about a large, spiny caterpillar has no material connection to Caterpillar Inc. or its investment outlook. Would You Hold a 5-Inch Caterpillar
• Negative Sentiment: Investor rotation appears to be weighing on CAT. Caterpillar was among the industrial names leading the market lower as investors questioned whether the data-center power trade is losing momentum, pressuring companies associated with infrastructure and equipment demand. Caterpillar and Data Center Power Trade
• Negative Sentiment: Broader market weakness also affected Caterpillar, with declines in CAT and NVIDIA contributing to a lower Dow Jones Industrial Average. Dow Falls on Caterpillar and NVIDIA Losses

Wall Street Analyst Weigh In

CAT has been the topic of a number of research analyst reports. JPMorgan Chase & Co. raised their price target on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a research note on Wednesday, June 17th. Zacks Research raised shares of Caterpillar from a “hold” rating to a “strong-buy” rating in a research note on Wednesday, August 12th. UBS Group raised their target price on shares of Caterpillar from $900.00 to $925.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. Citigroup reaffirmed a “buy” rating on shares of Caterpillar in a research note on Monday. Finally, Oppenheimer reiterated an “outperform” rating and issued a $1,118.00 price target on shares of Caterpillar in a research note on Tuesday, August 4th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eleven have assigned a Hold rating to the company’s stock. According to MarketBeat, Caterpillar presently has an average rating of “Moderate Buy” and an average target price of $994.17.

Caterpillar Price Performance

The company has a 50 day moving average price of $853.58 and a 200-day moving average price of $840.90. The company has a market cap of $360.20 billion, a price-to-earnings ratio of 33.72, a P/E/G ratio of 1.42 and a beta of 1.60. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts’ consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same period in the previous year, the firm posted $4.72 EPS. The company’s revenue for the quarter was up 23.7% compared to the same quarter last year. As a group, equities research analysts predict that Caterpillar Inc. will post 27.37 EPS for the current fiscal year.

Insider Buying and Selling at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the business’s stock in a transaction on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the sale, the chief executive officer owned 34,555 shares of the company’s stock, valued at $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.33% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Caterpillar

A number of institutional investors have recently made changes to their positions in CAT. Decker Retirement Planning Inc. increased its position in Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after purchasing an additional 22 shares during the period. Matrix Trust Co lifted its position in shares of Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock worth $33,000 after purchasing an additional 15 shares during the period. Axiom Investment Management LLC bought a new stake in shares of Caterpillar in the 2nd quarter valued at $36,000. Lam Group Inc. bought a new stake in shares of Caterpillar in the 1st quarter valued at $26,000. Finally, Tacita Capital Inc acquired a new stake in shares of Caterpillar during the second quarter worth $47,000. Institutional investors own 70.98% of the company’s stock.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction, mining, and industrial equipment. The company’s products include excavators, dozers, wheel loaders, motor graders, articulated trucks, and off-highway trucks, as well as related attachments and work tools. Caterpillar also supplies replacement parts, equipment services, technology solutions, and rental support through its dealer network.

The company serves customers in construction, mining, quarrying, energy, transportation, forestry, agriculture, and government-related industries.