Caterpillar (NYSE:CAT) Shares Up 3.2% – Should You Buy?

Caterpillar Inc. (NYSE:CAT) shares shot up 3.2% during mid-day trading on Monday . The company traded as high as $887.91 and last traded at $883.90. 2,084,754 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 2,913,972 shares. The stock had previously closed at $856.57.

Analysts Set New Price Targets

Several research analysts recently weighed in on CAT shares. Robert W. Baird set a $970.00 target price on Caterpillar in a research note on Wednesday, August 5th. UBS Group boosted their target price on shares of Caterpillar from $900.00 to $925.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Oppenheimer reissued an “outperform” rating and issued a $1,118.00 price target on shares of Caterpillar in a research report on Tuesday, August 4th. Zacks Research upgraded Caterpillar from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 12th. Finally, JPMorgan Chase & Co. boosted their target price on Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a research note on Wednesday, June 17th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $995.52.

Caterpillar Price Performance

The company’s 50-day simple moving average is $915.09 and its 200 day simple moving average is $827.86. The company has a market capitalization of $406.30 billion, a P/E ratio of 38.03, a P/E/G ratio of 1.53 and a beta of 1.60. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating the consensus estimate of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The company had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same period last year, the company earned $4.72 earnings per share. The business’s revenue was up 23.7% compared to the same quarter last year. As a group, sell-side analysts expect that Caterpillar Inc. will post 26.56 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be issued a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. Caterpillar’s dividend payout ratio is currently 28.06%.

Hedge Funds Weigh In On Caterpillar

A number of institutional investors have recently made changes to their positions in the business. Axxcess Wealth Management LLC raised its stake in Caterpillar by 2.8% in the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company’s stock valued at $12,844,000 after purchasing an additional 604 shares in the last quarter. Juno Financial Group LLC acquired a new stake in Caterpillar during the fourth quarter worth about $877,000. DSG Capital Advisors LLC bought a new position in Caterpillar in the 1st quarter valued at about $1,226,000. Cornerstone Planning LLC acquired a new position in shares of Caterpillar in the 4th quarter valued at approximately $4,517,000. Finally, Ticino Wealth acquired a new position in shares of Caterpillar in the 4th quarter valued at approximately $2,488,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.