Caterpillar’s (CAT) Buy Rating Reaffirmed at BMO Capital Markets

BMO Capital Markets restated their buy rating on shares of Caterpillar (NYSE:CAT) in a research report report published on Thursday. BMO Capital Markets currently has a $195.00 price target on the industrial products company’s stock, up from their previous price target of $165.00.

A number of other equities research analysts have also recently commented on CAT. ValuEngine upgraded shares of Caterpillar from a hold rating to a buy rating in a research note on Sunday, December 31st. Vetr upgraded shares of Caterpillar from a strong sell rating to a sell rating and set a $141.73 target price on the stock in a research note on Thursday, December 28th. Wells Fargo & Co set a $150.00 target price on shares of Caterpillar and gave the stock a buy rating in a research note on Monday, October 16th. They noted that the move was a valuation call. UBS Group set a $155.00 target price on shares of Caterpillar and gave the stock a buy rating in a research note on Wednesday, October 25th. Finally, Zacks Investment Research cut shares of Caterpillar from a strong-buy rating to a hold rating in a research note on Tuesday, September 26th. Three investment analysts have rated the stock with a sell rating, ten have given a hold rating and fifteen have given a buy rating to the company. The stock currently has a consensus rating of Hold and a consensus target price of $143.02.

Caterpillar (NYSE:CAT) traded up $2.16 during midday trading on Thursday, reaching $159.44. 4,865,700 shares of the company’s stock were exchanged, compared to its average volume of 4,706,667. Caterpillar has a 12 month low of $90.34 and a 12 month high of $159.58. The company has a market cap of $95,860.00, a PE ratio of 110.72, a price-to-earnings-growth ratio of 1.95 and a beta of 1.29. The company has a debt-to-equity ratio of 1.58, a quick ratio of 1.04 and a current ratio of 1.44.

Caterpillar (NYSE:CAT) last released its earnings results on Tuesday, October 24th. The industrial products company reported $1.95 EPS for the quarter, topping analysts’ consensus estimates of $1.27 by $0.68. Caterpillar had a net margin of 2.09% and a return on equity of 23.22%. The company had revenue of $11.41 billion for the quarter, compared to analysts’ expectations of $10.69 billion. During the same quarter last year, the business earned $0.85 EPS. The firm’s revenue was up 24.6% compared to the same quarter last year. sell-side analysts predict that Caterpillar will post 6.45 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, February 20th. Stockholders of record on Monday, January 22nd will be given a dividend of $0.78 per share. This represents a $3.12 annualized dividend and a dividend yield of 1.96%. The ex-dividend date is Friday, January 19th. Caterpillar’s payout ratio is currently 216.67%.

In related news, insider Bradley M. Halverson sold 2,600 shares of the firm’s stock in a transaction on Monday, November 27th. The shares were sold at an average price of $137.67, for a total value of $357,942.00. Following the completion of the transaction, the insider now directly owns 5,214 shares of the company’s stock, valued at $717,811.38. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Thomas A. Pellette sold 24,547 shares of the firm’s stock in a transaction on Friday, November 17th. The shares were sold at an average price of $135.69, for a total transaction of $3,330,782.43. The disclosure for this sale can be found here. Over the last three months, insiders sold 52,989 shares of company stock valued at $7,235,850. 0.14% of the stock is currently owned by insiders.

Hedge funds have recently bought and sold shares of the stock. Quadrant Capital Group LLC boosted its stake in Caterpillar by 10.6% during the second quarter. Quadrant Capital Group LLC now owns 1,339 shares of the industrial products company’s stock worth $102,000 after buying an additional 128 shares during the period. Baker Ellis Asset Management LLC purchased a new position in Caterpillar during the second quarter worth $104,000. Motco boosted its stake in Caterpillar by 264.9% during the second quarter. Motco now owns 989 shares of the industrial products company’s stock worth $106,000 after buying an additional 718 shares during the period. Acrospire Investment Management LLC boosted its stake in Caterpillar by 900.0% during the second quarter. Acrospire Investment Management LLC now owns 1,000 shares of the industrial products company’s stock worth $107,000 after buying an additional 900 shares during the period. Finally, Chicago Partners Investment Group LLC boosted its stake in Caterpillar by 75.6% during the second quarter. Chicago Partners Investment Group LLC now owns 1,152 shares of the industrial products company’s stock worth $118,000 after buying an additional 496 shares during the period. 68.54% of the stock is owned by hedge funds and other institutional investors.

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