Caterpillar (NYSE:CAT) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a research report issued to clients and investors on Tuesday, Zacks.com reports. They currently have a $130.00 target price on the industrial products company’s stock. Zacks Investment Research‘s price target points to a potential upside of 3.79% from the stock’s previous close.

According to Zacks, “Caterpillar’s global retail sales have been declining for six months in a row in May 2020, which remains a woe. The company did not provide guidance for 2020 citing uncertainty related to the coronavirus pandemic and stated that results for the balance of the year will continue to bear the impact. Caterpillar’s results this year are likely to be impacted by a weak backlog, a sluggish manufacturing sector, reduced spending at mining customers and low oil prices. The earnings estimate for the current year has thus undergone negative revisions lately. In the wake of the coronavirus crisis, the company has taken actions to reduce costs that will help sustain margins amid low volumes. Strong liquidity position, investments in expanded offerings and services, and digital initiatives including e-commerce will fuel growth.”

CAT has been the subject of a number of other reports. BMO Capital Markets cut Caterpillar from an “outperform” rating to a “market perform” rating and set a $130.00 price objective for the company. in a research report on Friday, June 12th. UBS Group boosted their price objective on Caterpillar from $112.00 to $130.00 and gave the company a “neutral” rating in a research report on Thursday, June 11th. Morgan Stanley cut Caterpillar from an “equal weight” rating to an “underweight” rating and set a $93.00 price target for the company. in a research report on Monday, April 27th. Stephens dropped their price target on Caterpillar from $100.00 to $80.00 and set an “underweight” rating for the company in a research report on Thursday, April 9th. Finally, Barclays reiterated a “hold” rating and set a $140.00 price target on shares of Caterpillar in a research report on Thursday, April 16th. Five equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and eight have given a buy rating to the stock. Caterpillar currently has an average rating of “Hold” and a consensus price target of $131.95.

Shares of Caterpillar stock traded down $0.07 on Tuesday, reaching $125.25. The company’s stock had a trading volume of 57,286 shares, compared to its average volume of 3,928,647. The company has a market capitalization of $67.79 billion, a P/E ratio of 13.26, a PEG ratio of 2.06 and a beta of 1.10. Caterpillar has a 52-week low of $87.50 and a 52-week high of $150.55. The stock has a 50-day moving average price of $120.96 and a 200-day moving average price of $126.22. The company has a quick ratio of 0.97, a current ratio of 1.42 and a debt-to-equity ratio of 1.71.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Tuesday, April 28th. The industrial products company reported $1.60 EPS for the quarter, missing the Zacks’ consensus estimate of $1.69 by ($0.09). The business had revenue of $10.64 billion during the quarter, compared to analysts’ expectations of $10.98 billion. Caterpillar had a net margin of 10.41% and a return on equity of 37.15%. The firm’s quarterly revenue was down 21.0% compared to the same quarter last year. During the same quarter last year, the firm earned $2.94 earnings per share. Sell-side analysts forecast that Caterpillar will post 4.94 earnings per share for the current fiscal year.

Institutional investors and hedge funds have recently bought and sold shares of the company. Engrave Wealth Partners LLC acquired a new stake in shares of Caterpillar in the 4th quarter valued at approximately $32,000. Capital Analysts LLC lifted its holdings in shares of Caterpillar by 108.2% in the 1st quarter. Capital Analysts LLC now owns 229 shares of the industrial products company’s stock valued at $27,000 after buying an additional 119 shares during the period. Central Bank & Trust Co. acquired a new stake in shares of Caterpillar in the 1st quarter valued at approximately $33,000. Total Clarity Wealth Management Inc. acquired a new stake in shares of Caterpillar in the 4th quarter valued at approximately $36,000. Finally, Private Ocean LLC lifted its holdings in shares of Caterpillar by 62.9% in the 1st quarter. Private Ocean LLC now owns 259 shares of the industrial products company’s stock valued at $30,000 after buying an additional 100 shares during the period. 64.07% of the stock is owned by institutional investors and hedge funds.

Caterpillar Company Profile

Caterpillar, Inc engages in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It operates through the following segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other.

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