Caterpillar (NYSE:CAT) Stock Rating Lowered by StockNews.com

Caterpillar (NYSE:CAT) was downgraded by research analysts at StockNews.com from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday.

Other equities research analysts have also recently issued reports about the stock. UBS Group upped their price target on shares of Caterpillar from $270.00 to $285.00 and gave the company a “sell” rating in a report on Wednesday, August 7th. Bank of America decreased their price target on shares of Caterpillar from $385.00 to $376.00 and set a “buy” rating for the company in a report on Wednesday, August 7th. Raymond James started coverage on shares of Caterpillar in a research report on Friday, June 28th. They set a “market perform” rating for the company. Truist Financial reaffirmed a “buy” rating and set a $399.00 price objective (up previously from $390.00) on shares of Caterpillar in a research report on Wednesday, August 7th. Finally, Citigroup started coverage on shares of Caterpillar in a research report on Wednesday, June 26th. They set a “buy” rating and a $380.00 price objective for the company. Two equities research 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’s stock. Based on data from MarketBeat.com, Caterpillar currently has an average rating of “Hold” and a consensus target price of $336.31.

Caterpillar Trading Down 1.3 %

Shares of NYSE:CAT opened at $329.32 on Thursday. The stock has a market capitalization of $161.05 billion, a PE ratio of 14.87, a P/E/G ratio of 1.66 and a beta of 1.12. Caterpillar has a 1 year low of $223.76 and a 1 year high of $382.01. The firm has a fifty day moving average price of $339.86 and a 200 day moving average price of $343.24. 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) last issued its quarterly earnings data on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.53 by $0.46. Caterpillar had a net margin of 16.58% and a return on equity of 59.88%. The firm had revenue of $16.69 billion during the quarter, compared to analysts’ expectations of $16.91 billion. During the same period in the prior year, the company posted $5.55 earnings per share. Caterpillar’s revenue for the quarter was down 3.6% on a year-over-year basis. Analysts expect that Caterpillar will post 21.87 EPS for the current fiscal year.

Caterpillar announced that its board has authorized a stock buyback program on Wednesday, June 12th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the industrial products company to reacquire up to 12.7% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.

Insider Transactions at Caterpillar

In other news, insider Anthony D. Fassino sold 3,185 shares of the firm’s stock in a transaction that occurred 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 completion of the sale, the insider now owns 33,442 shares of the company’s stock, valued at $11,750,181.12. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. In other news, insider Anthony D. Fassino sold 3,185 shares of the stock in a transaction that occurred 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Gerald Johnson purchased 100 shares of the firm’s stock in a transaction dated Wednesday, September 4th. The shares were bought at an average cost of $338.59 per share, for a total transaction of $33,859.00. Following the completion of the purchase, the director now directly owns 2,842 shares of the company’s stock, valued at $962,272.78. The disclosure for this purchase can be found here. Over the last 90 days, insiders sold 7,668 shares of company stock valued at $2,665,760. Corporate insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Hedge funds have recently modified their holdings of the stock. Partnership Wealth Management LLC bought a new position in Caterpillar in the fourth quarter valued at approximately $26,000. Richardson Financial Services Inc. bought a new position in Caterpillar in the fourth quarter valued at approximately $27,000. Thompson Investment Management Inc. bought a new position in Caterpillar in the first quarter valued at approximately $27,000. Bbjs Financial Advisors LLC bought a new position in Caterpillar in the second quarter valued at approximately $28,000. Finally, Financial Connections Group Inc. bought a new position in Caterpillar in the second quarter valued at approximately $28,000. 70.98% of the stock is 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.