Caterpillar (NYSE:CAT) Rating Lowered to Hold at StockNews.com

StockNews.com downgraded shares of Caterpillar (NYSE:CAT) from a buy rating to a hold rating in a research note published on Thursday morning.

Several other equities analysts also recently issued reports on CAT. Truist Financial reissued a buy rating and set a $399.00 price objective (up previously from $390.00) on shares of Caterpillar in a research note on Wednesday, August 7th. Bank of America decreased their price objective on Caterpillar from $385.00 to $376.00 and set a buy rating on the stock in a report on Wednesday, August 7th. Citigroup initiated coverage on Caterpillar in a research note on Wednesday, June 26th. They issued a buy rating and a $380.00 target price for the company. Barclays raised their price target on Caterpillar from $315.00 to $335.00 and gave the stock an equal weight rating in a research note on Wednesday, August 7th. Finally, Evercore ISI dropped their price objective on shares of Caterpillar from $338.00 to $321.00 and set an in-line rating for the company in a research note on Monday, August 19th. Two analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have given a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of Hold and a consensus target price of $336.31.

Caterpillar Price Performance

Shares of NYSE:CAT opened at $333.50 on Thursday. Caterpillar has a one year low of $223.76 and a one year high of $382.01. The stock has a market cap of $163.10 billion, a PE ratio of 15.06, a price-to-earnings-growth ratio of 1.66 and a beta of 1.12. The business’s fifty day moving average price is $339.94 and its two-hundred day moving average price is $343.18. The company has a debt-to-equity ratio of 1.39, a quick ratio of 0.78 and a current ratio of 1.28.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Tuesday, August 6th. The industrial products company reported $5.99 EPS for the quarter, topping analysts’ consensus estimates of $5.53 by $0.46. The firm had revenue of $16.69 billion during the quarter, compared to analysts’ expectations of $16.91 billion. Caterpillar had a return on equity of 59.88% and a net margin of 16.58%. The firm’s quarterly revenue was down 3.6% compared to the same quarter last year. During the same quarter last year, the business posted $5.55 EPS. On average, analysts forecast that Caterpillar will post 21.87 EPS for the current fiscal year.

Caterpillar announced that its Board of Directors has authorized a share repurchase program on Wednesday, June 12th that allows the company to buyback $20.00 billion in shares. This buyback authorization allows the industrial products company to repurchase up to 12.7% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.

Caterpillar Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd were paid a $1.41 dividend. This represents a $5.64 dividend on an annualized basis and a dividend yield of 1.69%. The ex-dividend date of this dividend was Monday, July 22nd. This is an increase from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s dividend payout ratio (DPR) is currently 25.46%.

Insider Activity at Caterpillar

In other news, insider Anthony D. Fassino sold 3,185 shares of the company’s stock in a transaction dated Friday, August 30th. The stock was sold at an average price of $351.36, for a total value of $1,119,081.60. Following the completion of the sale, the insider now owns 33,442 shares of the company’s stock, valued at $11,750,181.12. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In other news, insider Cheryl H. Johnson sold 1,508 shares of the business’s stock in a transaction on Tuesday, July 16th. The shares were sold at an average price of $350.00, for a total transaction of $527,800.00. Following the transaction, the insider now directly owns 18,515 shares of the company’s stock, valued at $6,480,250. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Anthony D. Fassino sold 3,185 shares of the firm’s stock in a transaction on Friday, August 30th. The shares were 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 of the company’s stock, valued at $11,750,181.12. The disclosure for this sale can be found here. In the last three months, insiders sold 7,668 shares of company stock worth $2,665,760. Corporate insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Souders Financial Advisors lifted its stake in shares of Caterpillar by 0.8% in the second quarter. Souders Financial Advisors now owns 3,657 shares of the industrial products company’s stock worth $1,218,000 after acquiring an additional 29 shares in the last quarter. Private Trust Co. NA grew its position in shares of Caterpillar by 0.3% during the 1st quarter. Private Trust Co. NA now owns 10,695 shares of the industrial products company’s stock valued at $3,919,000 after buying an additional 30 shares during the last quarter. Southland Equity Partners LLC raised its stake in Caterpillar by 4.0% during the first quarter. Southland Equity Partners LLC now owns 784 shares of the industrial products company’s stock worth $287,000 after acquiring an additional 30 shares during the period. Davis Investment Partners LLC lifted its holdings in Caterpillar by 2.1% in the first quarter. Davis Investment Partners LLC now owns 1,454 shares of the industrial products company’s stock worth $541,000 after acquiring an additional 30 shares during the last quarter. Finally, Hilltop National Bank boosted its stake in Caterpillar by 1.2% in the second quarter. Hilltop National Bank now owns 2,636 shares of the industrial products company’s stock valued at $878,000 after acquiring an additional 31 shares during the period. 70.98% of the stock is 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.