Caterpillar (NYSE:CAT) Raised to Buy at Melius

Caterpillar (NYSE:CAT) was upgraded by Melius from a “hold” rating to a “buy” rating in a report issued on Wednesday,Finviz reports. The firm currently has a $500.00 price objective on the industrial products company’s stock. Melius’ price objective points to a potential upside of 26.83% from the company’s current price.

Several other brokerages have also recently commented on CAT. Truist Financial increased their price target on shares of Caterpillar from $396.00 to $414.00 and gave the stock a “buy” rating in a research report on Monday, June 23rd. Citigroup restated a “buy” rating and set a $420.00 price objective (up from $370.00) on shares of Caterpillar in a research note on Tuesday, June 24th. Morgan Stanley raised Caterpillar from an “underweight” rating to an “equal weight” rating and cut their price target for the company from $300.00 to $283.00 in a report on Wednesday, April 16th. DA Davidson lifted their price target on Caterpillar from $325.00 to $331.00 and gave the company a “neutral” rating in a report on Monday, May 5th. Finally, Bank of America upped their price objective on Caterpillar from $335.00 to $385.00 and gave the company a “buy” rating in a report on Friday, May 30th. Six research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $390.00.

Caterpillar Price Performance

Shares of NYSE CAT opened at $394.22 on Wednesday. Caterpillar has a fifty-two week low of $267.30 and a fifty-two week high of $418.50. The company has a quick ratio of 0.77, a current ratio of 1.32 and a debt-to-equity ratio of 1.43. The firm has a market cap of $185.69 billion, a PE ratio of 19.21, a price-to-earnings-growth ratio of 2.60 and a beta of 1.38. The business has a 50 day moving average price of $355.40 and a two-hundred day moving average price of $347.25.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Wednesday, April 30th. The industrial products company reported $4.25 EPS for the quarter, missing analysts’ consensus estimates of $4.35 by ($0.10). The company had revenue of $14.25 billion for the quarter, compared to the consensus estimate of $14.64 billion. Caterpillar had a net margin of 15.71% and a return on equity of 53.77%. The company’s revenue was down 9.8% compared to the same quarter last year. During the same quarter last year, the company earned $5.60 earnings per share. Sell-side analysts expect that Caterpillar will post 19.86 earnings per share for the current fiscal year.

Insider Activity at Caterpillar

In other news, Director David Maclennan purchased 375 shares of the firm’s stock in a transaction on Wednesday, May 7th. The stock was bought at an average cost of $320.70 per share, for a total transaction of $120,262.50. Following the completion of the acquisition, the director directly owned 6,653 shares of the company’s stock, valued at approximately $2,133,617.10. The trade was a 5.97% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Hedge funds have recently bought and sold shares of the company. Flagship Wealth Advisors LLC bought a new stake in Caterpillar during the fourth quarter valued at about $26,000. Cyrus J. Lawrence LLC bought a new stake in Caterpillar during the fourth quarter valued at about $27,000. Investment Management Corp VA ADV bought a new stake in Caterpillar during the fourth quarter valued at about $33,000. Compass Financial Services Inc boosted its holdings in Caterpillar by 49.2% during the first quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company’s stock valued at $31,000 after acquiring an additional 31 shares during the period. Finally, Quarry LP bought a new stake in Caterpillar during the fourth quarter valued at about $35,000. 70.98% of the stock is currently owned by 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.