Caterpillar (NYSE:CAT) Receives New Coverage from Analysts at Citigroup

Stock analysts at Citigroup assumed coverage on shares of Caterpillar (NYSE:CAT) in a research report issued to clients and investors on Wednesday, Briefing.com reports. The firm set a “buy” rating and a $380.00 price target on the industrial products company’s stock. Citigroup’s target price would indicate a potential upside of 16.06% from the company’s previous close.

A number of other equities analysts have also recently weighed in on the company. HSBC lifted their price target on Caterpillar from $330.00 to $360.00 and gave the stock a “hold” rating in a research note on Tuesday, April 30th. Stifel Nicolaus downgraded shares of Caterpillar from a “buy” rating to a “hold” rating and boosted their target price for the company from $293.00 to $350.00 in a research note on Friday, April 26th. The Goldman Sachs Group raised their target price on Caterpillar from $357.00 to $408.00 and gave the stock a “buy” rating in a research report on Tuesday, April 16th. Truist Financial started coverage on Caterpillar in a research report on Thursday, March 14th. They set a “buy” rating and a $390.00 price objective for the company. Finally, JPMorgan Chase & Co. upped their target price on Caterpillar from $385.00 to $435.00 and gave the company an “overweight” rating in a report on Tuesday, April 16th. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating and nine have assigned a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $329.63.

Caterpillar Stock Performance

CAT opened at $327.42 on Wednesday. The business has a 50 day moving average price of $341.98 and a two-hundred day moving average price of $328.08. The company has a debt-to-equity ratio of 1.41, a current ratio of 1.35 and a quick ratio of 0.83. The company has a market capitalization of $160.12 billion, a price-to-earnings ratio of 14.78, a price-to-earnings-growth ratio of 1.69 and a beta of 1.14. Caterpillar has a 1-year low of $223.76 and a 1-year high of $382.01.

Caterpillar (NYSE:CAT) last issued its earnings results on Thursday, April 25th. The industrial products company reported $5.60 earnings per share for the quarter, topping analysts’ consensus estimates of $5.12 by $0.48. The firm had revenue of $15.80 billion during the quarter, compared to analysts’ expectations of $16.07 billion. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. Research analysts predict that Caterpillar will post 21.84 EPS for the current fiscal year.

Caterpillar declared that its board has initiated a share repurchase plan on Wednesday, June 12th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the industrial products company to repurchase up to 12.7% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In other news, Director David Maclennan purchased 500 shares of the firm’s stock in a transaction on Friday, May 3rd. The stock was bought at an average cost of $337.39 per share, for a total transaction of $168,695.00. Following the completion of the acquisition, the director now directly owns 5,738 shares of the company’s stock, valued at $1,935,943.82. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. In other Caterpillar news, Director David Maclennan purchased 500 shares of the business’s stock in a transaction dated Friday, May 3rd. The stock was bought at an average cost of $337.39 per share, for a total transaction of $168,695.00. Following the completion of the acquisition, the director now directly owns 5,738 shares in the company, valued at $1,935,943.82. The purchase was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Cheryl H. Johnson sold 1,508 shares of the business’s stock in a transaction on Thursday, May 30th. The stock was sold at an average price of $340.00, for a total transaction of $512,720.00. Following the transaction, the insider now directly owns 20,023 shares in the company, valued at approximately $6,807,820. The disclosure for this sale can be found here. Insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

Several large investors have recently added to or reduced their stakes in the company. Norges Bank acquired a new position in shares of Caterpillar in the 4th quarter valued at $1,660,560,000. International Assets Investment Management LLC raised its position in Caterpillar by 28,603.5% in the fourth quarter. International Assets Investment Management LLC now owns 1,494,018 shares of the industrial products company’s stock worth $4,417,360,000 after purchasing an additional 1,488,813 shares in the last quarter. Capital Wealth Planning LLC lifted its stake in Caterpillar by 27,495.2% during the fourth quarter. Capital Wealth Planning LLC now owns 1,182,453 shares of the industrial products company’s stock worth $349,616,000 after purchasing an additional 1,178,168 shares during the period. Charles Schwab Investment Management Inc. boosted its holdings in Caterpillar by 19.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,264,635 shares of the industrial products company’s stock valued at $947,875,000 after purchasing an additional 529,420 shares in the last quarter. Finally, Bank Julius Baer & Co. Ltd Zurich grew its stake in shares of Caterpillar by 5,293.1% in the 4th quarter. Bank Julius Baer & Co. Ltd Zurich now owns 482,360 shares of the industrial products company’s stock valued at $142,620,000 after purchasing an additional 473,416 shares during the period. Institutional investors and hedge funds own 70.98% of the company’s stock.

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.