Caterpillar (NYSE:CAT) Hits New 52-Week High After Analyst Upgrade

Shares of Caterpillar Inc. (NYSE:CAT) reached a new 52-week high during trading on Tuesday after JPMorgan Chase & Co. raised their price target on the stock from $505.00 to $650.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. Caterpillar traded as high as $511.89 and last traded at $513.73, with a volume of 723747 shares changing hands. The stock had previously closed at $504.76.

CAT has been the subject of a number of other reports. DA Davidson upped their price objective on shares of Caterpillar from $331.00 to $388.00 and gave the stock a “neutral” rating in a research report on Tuesday, July 22nd. Barclays upped their price target on shares of Caterpillar from $383.00 to $425.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 6th. Citigroup raised their price target on shares of Caterpillar from $540.00 to $570.00 and gave the company a “buy” rating in a research note on Tuesday, October 7th. Erste Group Bank upgraded Caterpillar from a “hold” rating to a “buy” rating in a research note on Friday, October 3rd. Finally, Oppenheimer raised their target price on Caterpillar from $480.00 to $513.00 and gave the company an “outperform” rating in a research report on Monday, September 29th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have issued a Hold rating to the company’s stock. According to data from MarketBeat, Caterpillar presently has a consensus rating of “Moderate Buy” and a consensus price target of $501.47.

Insider Activity at Caterpillar

In other news, Chairman Donald J. Umpleby III sold 17,166 shares of the firm’s stock in a transaction that occurred on Friday, October 10th. The shares were sold at an average price of $505.29, for a total transaction of $8,673,808.14. Following the completion of the sale, the chairman owned 448,173 shares in the company, valued at $226,457,335.17. This trade represents a 3.69% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Susan C. Schwab sold 2,324 shares of Caterpillar stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $410.00, for a total transaction of $952,840.00. Following the sale, the director directly owned 6,917 shares in the company, valued at approximately $2,835,970. The trade was a 25.15% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 55,985 shares of company stock valued at $25,559,300. 0.33% of the stock is owned by company insiders.

Hedge Funds Weigh In On Caterpillar

Several large investors have recently modified their holdings of the business. Pacific Point Advisors LLC purchased a new position in Caterpillar during the fourth quarter worth about $579,000. Brighton Jones LLC lifted its holdings in shares of Caterpillar by 51.5% in the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock worth $2,688,000 after acquiring an additional 2,519 shares during the last quarter. GAMMA Investing LLC boosted its position in shares of Caterpillar by 32.0% during the 1st quarter. GAMMA Investing LLC now owns 11,311 shares of the industrial products company’s stock worth $3,730,000 after purchasing an additional 2,745 shares during the period. Wealth Enhancement Advisory Services LLC increased its holdings in Caterpillar by 18.6% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 191,640 shares of the industrial products company’s stock valued at $63,202,000 after purchasing an additional 30,070 shares during the last quarter. Finally, Mission Wealth Management LP raised its position in Caterpillar by 32.3% in the first quarter. Mission Wealth Management LP now owns 10,612 shares of the industrial products company’s stock valued at $3,500,000 after purchasing an additional 2,593 shares during the period. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Stock Up 4.8%

The business has a 50 day simple moving average of $446.55 and a 200 day simple moving average of $386.71. The company has a market capitalization of $247.71 billion, a price-to-earnings ratio of 26.89, a PEG ratio of 3.09 and a beta of 1.46. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.34 and a quick ratio of 0.81.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.88 by ($0.16). Caterpillar had a net margin of 14.95% and a return on equity of 48.95%. The firm had revenue of $16.57 billion during the quarter, compared to analysts’ expectations of $16.14 billion. During the same quarter in the prior year, the firm posted $5.99 EPS. Caterpillar’s quarterly revenue was down .7% compared to the same quarter last year. As a group, equities analysts predict that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 20th. Shareholders of record on Monday, October 20th will be given a $1.51 dividend. This represents a $6.04 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend is Monday, October 20th. Caterpillar’s dividend payout ratio (DPR) is currently 30.72%.

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.