Bank of America Raises Caterpillar (NYSE:CAT) Price Target to $434.00

Caterpillar (NYSE:CAT) had its target price boosted by Bank of America from $376.00 to $434.00 in a research report released on Monday morning, Benzinga reports. Bank of America currently has a buy rating on the industrial products company’s stock.

A number of other analysts have also recently commented on the company. StockNews.com cut Caterpillar from a buy rating to a hold rating in a research report on Tuesday, September 24th. Barclays lifted their target price on Caterpillar from $315.00 to $335.00 and gave the stock an equal weight rating in a report on Wednesday, August 7th. Raymond James began 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 issued a $399.00 price objective (up from $390.00) on shares of Caterpillar in a report on Wednesday, August 7th. Finally, Evercore ISI reduced their target price on shares of Caterpillar from $338.00 to $321.00 and set an in-line rating for the company in a report on Monday, August 19th. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of Hold and an average target price of $339.94.

Caterpillar Price Performance

Shares of NYSE CAT opened at $394.09 on Monday. Caterpillar has a fifty-two week low of $223.76 and a fifty-two week high of $397.22. The company has a market cap of $192.73 billion, a PE ratio of 17.79, a P/E/G ratio of 1.73 and a beta of 1.10. The company has a debt-to-equity ratio of 1.39, a quick ratio of 0.78 and a current ratio of 1.28. The business has a 50-day simple moving average of $349.66 and a two-hundred day simple moving average of $347.47.

Caterpillar (NYSE:CAT) last released its earnings results on Tuesday, August 6th. The industrial products company reported $5.99 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 company had revenue of $16.69 billion during the quarter, compared to analysts’ expectations of $16.91 billion. During the same period last year, the business earned $5.55 EPS. Caterpillar’s revenue for the quarter was down 3.6% on a year-over-year basis. As a group, equities analysts expect that Caterpillar will post 21.91 EPS for the current fiscal year.

Caterpillar announced that its board has approved 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 repurchase up to 12.7% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s management believes its shares are undervalued.

Insider Buying and Selling at Caterpillar

In other news, Director Gerald Johnson purchased 100 shares of the stock in a transaction dated Wednesday, September 4th. The shares were purchased at an average cost of $338.59 per share, with a total value 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 approximately $962,272.78. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In other Caterpillar news, Director Gerald Johnson bought 100 shares of the stock in a transaction on Wednesday, September 4th. The shares were bought at an average price of $338.59 per share, with a total value of $33,859.00. Following the purchase, the director now directly owns 2,842 shares in the company, valued at approximately $962,272.78. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Anthony D. Fassino sold 3,185 shares of the stock in a transaction dated 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 disclosure for this sale can be found here. Insiders sold 7,668 shares of company stock valued at $2,665,760 over the last quarter. 0.33% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Caterpillar

Large investors have recently made changes to their positions in the stock. Central Pacific Bank Trust Division increased its position in Caterpillar by 122.9% during the third quarter. Central Pacific Bank Trust Division now owns 2,340 shares of the industrial products company’s stock worth $915,000 after purchasing an additional 1,290 shares during the last quarter. Trust Co. of Toledo NA OH grew its stake in shares of Caterpillar by 2.6% in the 3rd quarter. Trust Co. of Toledo NA OH now owns 10,491 shares of the industrial products company’s stock valued at $4,103,000 after buying an additional 261 shares during the period. Weybosset Research & Management LLC purchased a new stake in shares of Caterpillar during the 3rd quarter valued at approximately $235,000. Doliver Advisors LP lifted its holdings in Caterpillar by 2.2% in the third quarter. Doliver Advisors LP now owns 1,518 shares of the industrial products company’s stock valued at $594,000 after acquiring an additional 33 shares during the last quarter. Finally, Jacobs & Co. CA grew its position in Caterpillar by 0.5% in the third quarter. Jacobs & Co. CA now owns 40,231 shares of the industrial products company’s stock worth $15,735,000 after acquiring an additional 215 shares during the period. 70.98% of the stock is currently owned by hedge funds and other 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.