Caterpillar Inc. (CAT) Upgraded by Zacks Investment Research to “Buy”
Zacks Investment Research upgraded shares of Caterpillar Inc. (NYSE:CAT) from a hold rating to a buy rating in a research report released on Tuesday morning. The firm currently has $92.00 price objective on the stock.
According to Zacks, “Caterpillar’s Asia Pacific sales increased 2% in Aug, the first positive reading since November 2012 while sales lagged in other regions. Also, in the Construction Industries, Asia Pacific remains a consistent bright spot with a 12% increase, the best performance this year and marking its sixth consecutive month of growth. The EAME construction industry is also improving, with positive growth in three of the past four months. Further, leading indicators of U.S. non-residential construction signal robust conditions ahead for the domestic construction industry. Further, in line with its efforts to cut down costs, reduce capacity in the wake of lower demand, Caterpillar is shifting production from its Belgium facility. This, along with other restructuring actions, and share repurchases will help the mining behemoth to stay afloat. Also, the company has a positive record of earnings surprises in the recent quarters.”
CAT has been the topic of several other reports. Vetr upgraded shares of Caterpillar from a hold rating to a buy rating and set a $85.19 price target on the stock in a research note on Tuesday, September 13th. Axiom Securities reiterated a sell rating on shares of Caterpillar in a research note on Tuesday, August 30th. Deutsche Bank AG initiated coverage on shares of Caterpillar in a research note on Monday, September 12th. They set a buy rating and a $82.08 price target on the stock. Wells Fargo & Co. reiterated a market perform rating and set a $78.50 price target on shares of Caterpillar in a research note on Tuesday, August 23rd. Finally, Citigroup Inc. raised their price objective on shares of Caterpillar from $75.00 to $82.00 and gave the stock a neutral rating in a research report on Wednesday, July 27th. Three equities research analysts have rated the stock with a sell rating, fifteen have assigned a hold rating and nine have issued a buy rating to the company. The company currently has a consensus rating of Hold and an average target price of $72.49.
Shares of Caterpillar (NYSE:CAT) traded up 1.70% on Tuesday, hitting $84.29. 2,187,816 shares of the company’s stock were exchanged. The company’s 50-day moving average price is $82.70 and its 200 day moving average price is $77.85. Caterpillar has a 12-month low of $56.36 and a 12-month high of $84.73. The stock has a market cap of $49.24 billion, a price-to-earnings ratio of 56.19 and a beta of 1.64.
Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Tuesday, July 26th. The company reported $1.09 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.96 by $0.13. Caterpillar had a net margin of 2.64% and a return on equity of 12.37%. The firm had revenue of $10.34 billion for the quarter, compared to analyst estimates of $10.06 billion. During the same period last year, the business earned $1.27 EPS. Caterpillar’s revenue for the quarter was down 16.0% compared to the same quarter last year. On average, equities analysts predict that Caterpillar will post $3.50 earnings per share for the current fiscal year.
In other Caterpillar news, Director Dennis A. Muilenburg bought 1,930 shares of the company’s stock in a transaction on Friday, July 29th. The shares were bought at an average cost of $82.75 per share, with a total value of $159,707.50. Following the completion of the acquisition, the director now owns 9,558 shares of the company’s stock, valued at $790,924.50. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Bradley M. Halverson sold 2,841 shares of the stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $82.73, for a total transaction of $235,035.93. Following the sale, the insider now directly owns 20,232 shares in the company, valued at $1,673,793.36. The disclosure for this sale can be found here. 0.15% of the stock is currently owned by corporate insiders.
Hedge funds have recently modified their holdings of the company. Edgar Lomax Co. VA boosted its stake in shares of Caterpillar by 30.6% in the first quarter. Edgar Lomax Co. VA now owns 535,350 shares of the company’s stock worth $40,976,000 after buying an additional 125,500 shares during the period. Adage Capital Partners GP L.L.C. boosted its stake in shares of Caterpillar by 4.4% in the first quarter. Adage Capital Partners GP L.L.C. now owns 330,980 shares of the company’s stock worth $25,333,000 after buying an additional 13,839 shares during the period. PGGM Investments boosted its stake in shares of Caterpillar by 8.1% in the second quarter. PGGM Investments now owns 806,656 shares of the company’s stock worth $61,153,000 after buying an additional 60,615 shares during the period. Legal & General Group Plc boosted its stake in shares of Caterpillar by 1.3% in the first quarter. Legal & General Group Plc now owns 2,698,633 shares of the company’s stock worth $206,565,000 after buying an additional 35,138 shares during the period. Finally, National Pension Service boosted its stake in shares of Caterpillar by 4.1% in the first quarter. National Pension Service now owns 322,866 shares of the company’s stock worth $24,712,000 after buying an additional 12,591 shares during the period. 69.03% of the stock is currently owned by institutional investors.
Caterpillar Inc is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its three product segments: Resource Industries, Construction Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment.
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