Caterpillar (NYSE:CAT) Trading 2.9% Higher – Should You Buy?

Caterpillar Inc. (NYSE:CAT) was up 2.9% on Tuesday . The company traded as high as $898.00 and last traded at $889.3990. 3,151,426 shares traded hands during trading, an increase of 9% from the average daily volume of 2,890,406 shares. The stock had previously closed at $864.30.

Analyst Upgrades and Downgrades

CAT has been the subject of several research analyst reports. Robert W. Baird lifted their price objective on Caterpillar from $1,165.00 to $1,200.00 and gave the stock an “outperform” rating in a research report on Friday, June 26th. HSBC raised their target price on Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Oppenheimer boosted their price target on Caterpillar from $980.00 to $1,105.00 and gave the company an “outperform” rating in a research note on Monday, July 13th. Wells Fargo & Company increased their price target on Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a report on Tuesday, June 23rd. Finally, Citigroup lifted their price objective on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the company a “buy” rating in a research note on Tuesday, July 14th. Fifteen equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $980.57.

Caterpillar Trading Up 0.9%

The business has a 50 day moving average of $929.39 and a two-hundred day moving average of $801.45. The firm has a market capitalization of $413.25 billion, a price-to-earnings ratio of 44.80, a P/E/G ratio of 1.74 and a beta of 1.57. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm had revenue of $17.41 billion during the quarter, compared to analysts’ expectations of $16.53 billion. During the same quarter last year, the firm posted $4.25 earnings per share. The company’s revenue for the quarter was up 22.2% compared to the same quarter last year. Equities analysts predict that Caterpillar Inc. will post 24.87 EPS for the current year.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be issued a dividend of $1.63 per share. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, July 20th. Caterpillar’s dividend payout ratio is 32.45%.

Insider Activity at Caterpillar

In other Caterpillar news, CAO William E. Schaupp sold 360 shares of the business’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total transaction of $326,160.00. Following the completion of the sale, the chief accounting officer directly owned 530 shares of the company’s stock, valued at approximately $480,180. The trade was a 40.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Lange Bob De sold 24,222 shares of the firm’s stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total value of $22,354,968.24. Following the completion of the transaction, the insider owned 86,029 shares in the company, valued at $79,397,884.68. This represents a 21.97% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 95,773 shares of company stock valued at $87,642,635 over the last quarter. 0.33% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Caterpillar

Large investors have recently bought and sold shares of the stock. Axxcess Wealth Management LLC lifted its holdings in shares of Caterpillar by 2.8% in the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company’s stock worth $12,844,000 after buying an additional 604 shares in the last quarter. Juno Financial Group LLC purchased a new stake in Caterpillar in the 4th quarter worth approximately $877,000. DSG Capital Advisors LLC bought a new position in Caterpillar in the 1st quarter valued at $1,226,000. Cornerstone Planning LLC bought a new position in shares of Caterpillar in the fourth quarter worth $4,517,000. Finally, Ticino Wealth purchased a new stake in shares of Caterpillar in the fourth quarter worth $2,488,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.