Caterpillar Inc. (CAT) Downgraded by Zacks Investment Research to Hold
Caterpillar Inc. (NYSE:CAT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
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 and leading indicators of U.S. non-residential construction signal robust conditions ahead for the domestic construction industry. Further, the company wull benefit from its restructuring actions and share repurchases. Also, the company has a positive record of earnings surprises in the recent quarters. However, weak mining demand, lower oil prices, lower backlog and competitive pricing pressure will remain headwinds.”
A number of other equities research analysts have also issued reports on CAT. RBC Capital Markets set a $73.00 price target on Caterpillar and gave the stock a “hold” rating in a research note on Wednesday, July 27th. Morgan Stanley reiterated a “hold” rating and issued a $67.00 price target on shares of Caterpillar in a research note on Thursday, July 28th. Citigroup Inc. set a $82.00 price target on Caterpillar and gave the stock a “hold” rating in a research note on Tuesday, August 16th. Bank of America Corp. reiterated a “hold” rating and issued a $92.00 price target on shares of Caterpillar in a research note on Monday. Finally, Jefferies Group reiterated a “hold” rating and issued a $69.00 price target on shares of Caterpillar in a research note on Tuesday, June 21st. Three analysts have rated the stock with a sell rating, sixteen have issued a hold rating and eight have assigned a buy rating to the stock. Caterpillar presently has a consensus rating of “Hold” and a consensus target price of $73.07.
Caterpillar (NYSE:CAT) traded down 0.40% during midday trading on Tuesday, hitting $87.93. The stock had a trading volume of 2,325,647 shares. The company has a market capitalization of $51.37 billion, a PE ratio of 58.62 and a beta of 1.54. Caterpillar has a 1-year low of $56.36 and a 1-year high of $89.19. The stock’s 50-day moving average is $83.25 and its 200-day moving average is $78.26.
Caterpillar (NYSE:CAT) last announced its earnings results on Tuesday, July 26th. The company reported $1.09 EPS for the quarter, topping the Zacks’ consensus estimate of $0.96 by $0.13. Caterpillar had a return on equity of 12.37% and a net margin of 2.64%. The company had revenue of $10.34 billion for the quarter, compared to analysts’ expectations of $10.06 billion. During the same period last year, the firm earned $1.27 EPS. Caterpillar’s revenue for the quarter was down 16.0% compared to the same quarter last year. Equities research analysts forecast that Caterpillar will post $3.50 EPS for the current year.
In other Caterpillar news, insider Bradley M. Halverson sold 2,841 shares of Caterpillar stock in a transaction on Thursday, July 28th. The shares were sold at an average price of $82.73, for a total value of $235,035.93. Following the transaction, the insider now directly owns 20,232 shares of the company’s stock, valued at $1,673,793.36. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Dennis A. Muilenburg purchased 1,930 shares of the business’s stock in a transaction on Friday, July 29th. The stock was purchased at an average cost of $82.75 per share, for a total transaction of $159,707.50. Following the completion of the acquisition, the director now directly owns 9,558 shares of the company’s stock, valued at approximately $790,924.50. The disclosure for this purchase can be found here. 0.15% of the stock is currently owned by corporate insiders.
A number of institutional investors have recently added to or reduced their stakes in the company. LVM Capital Management Ltd. MI purchased a new position in Caterpillar during the third quarter valued at about $266,000. Evercore Wealth Management LLC raised its position in Caterpillar by 0.4% in the second quarter. Evercore Wealth Management LLC now owns 12,475 shares of the company’s stock valued at $946,000 after buying an additional 51 shares in the last quarter. Macquarie Group Ltd. raised its position in Caterpillar by 14.0% in the second quarter. Macquarie Group Ltd. now owns 52,777 shares of the company’s stock valued at $4,001,000 after buying an additional 6,468 shares in the last quarter. Williams Jones & Associates LLC raised its position in Caterpillar by 518.8% in the second quarter. Williams Jones & Associates LLC now owns 20,978 shares of the company’s stock valued at $1,590,000 after buying an additional 17,588 shares in the last quarter. Finally, Kentucky Retirement Systems Insurance Trust Fund purchased a new position in Caterpillar during the second quarter valued at about $1,787,000. 69.03% of the stock is currently owned by institutional investors and hedge funds.
Caterpillar Company Profile
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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