Caterpillar (NYSE:CAT) Reaches New 12-Month High – Time to Buy?

Caterpillar Inc. (NYSE:CAT)’s share price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $597.83 and last traded at $599.4350, with a volume of 269240 shares changing hands. The stock had previously closed at $591.49.

Analyst Ratings Changes

A number of brokerages recently commented on CAT. Jefferies Financial Group lifted their target price on shares of Caterpillar from $570.00 to $700.00 and gave the stock a “buy” rating in a research report on Wednesday, November 5th. Hsbc Global Res raised Caterpillar from a “hold” rating to a “strong-buy” rating in a research note on Thursday, November 6th. Oppenheimer raised their price target on Caterpillar from $513.00 to $645.00 and gave the stock an “outperform” rating in a research report on Thursday, October 30th. Royal Bank Of Canada started coverage on Caterpillar in a research note on Wednesday, October 22nd. They set a “sector perform” rating and a $560.00 price objective for the company. Finally, Morgan Stanley upped their price target on shares of Caterpillar from $350.00 to $380.00 and gave the company an “underweight” rating in a report on Thursday, October 30th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $610.32.

Caterpillar Stock Performance

The company’s 50-day moving average price is $537.00 and its 200 day moving average price is $448.96. The stock has a market capitalization of $281.24 billion, a PE ratio of 30.83, a PEG ratio of 2.68 and a beta of 1.57. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.86 and a current ratio of 1.38.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Wednesday, October 29th. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.52 by $0.43. The company had revenue of $17.64 billion during the quarter, compared to the consensus estimate of $16.72 billion. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. Caterpillar’s revenue was up 9.5% on a year-over-year basis. During the same period in the prior year, the firm earned $5.17 earnings per share. On average, equities research analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, November 20th. Shareholders of record on Monday, October 20th were issued a $1.51 dividend. The ex-dividend date was Monday, October 20th. This represents a $6.04 dividend on an annualized basis and a yield of 1.0%. Caterpillar’s dividend payout ratio is 31.01%.

Insider Activity

In other news, CFO Andrew R. J. Bonfield sold 10,000 shares of Caterpillar stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $571.44, for a total transaction of $5,714,400.00. Following the completion of the transaction, the chief financial officer directly owned 55,460 shares in the company, valued at approximately $31,692,062.40. This trade represents a 15.28% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director David Maclennan acquired 300 shares of Caterpillar stock in a transaction that occurred on Thursday, November 6th. The shares were bought at an average cost of $568.86 per share, with a total value of $170,658.00. Following the transaction, the director owned 7,947 shares in the company, valued at $4,520,730.42. This represents a 3.92% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders have sold 79,061 shares of company stock worth $41,949,366. 0.33% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Caterpillar

A number of hedge funds have recently bought and sold shares of the company. Norges Bank purchased a new stake in Caterpillar in the second quarter worth about $2,165,899,000. Groupe la Francaise increased its holdings in Caterpillar by 82.0% in the 2nd quarter. Groupe la Francaise now owns 27,246 shares of the industrial products company’s stock worth $10,820,000 after acquiring an additional 12,278 shares in the last quarter. Trivium Point Advisory LLC raised its stake in Caterpillar by 132.9% during the 2nd quarter. Trivium Point Advisory LLC now owns 1,926 shares of the industrial products company’s stock worth $748,000 after acquiring an additional 1,099 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Caterpillar by 9.9% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 78,947 shares of the industrial products company’s stock valued at $26,037,000 after purchasing an additional 7,125 shares in the last quarter. Finally, Palmer Knight Co bought a new position in shares of Caterpillar in the second quarter worth approximately $5,884,000. Institutional investors own 70.98% of the company’s stock.

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.