Caterpillar (NYSE:CAT) Hits New 12-Month High – Should You Buy?

Caterpillar Inc. (NYSE:CAT) reached a new 52-week high during trading on Tuesday . The company traded as high as $957.36 and last traded at $953.1570, with a volume of 205770 shares. The stock had previously closed at $933.93.

Analysts Set New Price Targets

Several research firms have issued reports on CAT. Zacks Research raised shares of Caterpillar from a “hold” rating to a “strong-buy” rating in a research report on Monday, June 8th. Jefferies Financial Group raised their target price on shares of Caterpillar from $900.00 to $1,045.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Bank of America boosted their price target on Caterpillar from $930.00 to $989.00 and gave the company a “buy” rating in a report on Friday, May 1st. Argus raised their price objective on Caterpillar from $820.00 to $990.00 and gave the stock a “buy” rating in a report on Tuesday, May 5th. Finally, Sanford C. Bernstein lifted their target price on Caterpillar from $769.00 to $879.00 and gave the company a “market perform” rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, Caterpillar presently has an average rating of “Moderate Buy” and a consensus price target of $933.27.

Caterpillar Trading Up 2.3%

The company has a market capitalization of $439.90 billion, a PE ratio of 47.54, a price-to-earnings-growth ratio of 1.80 and a beta of 1.59. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. The company’s fifty day moving average is $856.17 and its 200-day moving average is $730.40.

Caterpillar (NYSE:CAT) last announced its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.65 by $0.89. The business had revenue of $17.42 billion for the quarter, compared to analysts’ expectations of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The business’s revenue for the quarter was up 22.2% on a year-over-year basis. During the same quarter last year, the firm earned $4.25 EPS. On average, analysts anticipate that Caterpillar Inc. will post 24.62 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be issued a $1.63 dividend. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, July 20th. Caterpillar’s dividend payout ratio is presently 30.06%.

Insiders Place Their Bets

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the firm’s stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the sale, the chief financial officer directly owned 52,935 shares in the company, valued at $48,631,913.85. This trade represents a 22.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Denise C. Johnson sold 12,605 shares of Caterpillar stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the transaction, the insider directly owned 49,825 shares in the company, valued at $45,236,615.75. This represents a 20.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 95,773 shares of company stock worth $87,642,635. Insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Pacific Point Advisors LLC purchased a new stake in Caterpillar during the 4th quarter worth approximately $579,000. Brighton Jones LLC grew its holdings in shares of Caterpillar by 51.5% during the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock valued at $2,688,000 after buying an additional 2,519 shares during the last quarter. United Bank increased its position in shares of Caterpillar by 108.5% in the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company’s stock valued at $1,585,000 after acquiring an additional 2,125 shares during the period. Schnieders Capital Management LLC. raised its stake in Caterpillar by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company’s stock worth $3,551,000 after acquiring an additional 347 shares during the last quarter. Finally, Alliancebernstein L.P. lifted its position in Caterpillar by 6.5% during the 2nd quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company’s stock worth $222,120,000 after acquiring an additional 34,846 shares during the period. 70.98% of the stock is currently owned by hedge funds and other 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.