Brokerages Set Caterpillar Inc. (NYSE:CAT) Price Target at $623.10

Caterpillar Inc. (NYSE:CAT) has been given an average recommendation of “Moderate Buy” by the twenty-five research firms that are covering the company, MarketBeat Ratings reports. One research analyst has rated the stock with a sell rating, seven have assigned a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $633.35.

Several research analysts recently commented on the company. Morgan Stanley raised their target price on Caterpillar from $380.00 to $395.00 and gave the stock an “underweight” rating in a research report on Wednesday, December 10th. Erste Group Bank raised shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Friday, October 3rd. Rothschild & Co Redburn upped their target price on shares of Caterpillar from $420.00 to $650.00 and gave the company a “neutral” rating in a research note on Wednesday. Raymond James Financial restated a “market perform” rating on shares of Caterpillar in a research note on Wednesday, January 7th. Finally, Wells Fargo & Company initiated coverage on Caterpillar in a report on Thursday, November 13th. They set an “overweight” rating and a $675.00 price objective on the stock.

Insider Buying and Selling

In other news, Director David Maclennan purchased 300 shares of Caterpillar stock in a transaction on Thursday, November 6th. The shares were purchased at an average cost of $568.86 per share, for a total transaction of $170,658.00. Following the completion of the transaction, the director directly owned 7,947 shares in the company, valued at approximately $4,520,730.42. This represents a 3.92% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of the company’s stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $575.06, for a total transaction of $5,750,600.00. Following the sale, the chief financial officer directly owned 45,460 shares in the company, valued at $26,142,227.60. This represents a 18.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 54,729 shares of company stock worth $31,084,308 in the last three months. Company insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Baker Ellis Asset Management LLC raised its position in Caterpillar by 34.1% in the 4th quarter. Baker Ellis Asset Management LLC now owns 2,157 shares of the industrial products company’s stock valued at $1,236,000 after purchasing an additional 549 shares during the last quarter. Jackson Square Capital LLC grew its holdings in shares of Caterpillar by 0.5% during the fourth quarter. Jackson Square Capital LLC now owns 9,432 shares of the industrial products company’s stock worth $5,403,000 after purchasing an additional 51 shares during the last quarter. West Paces Advisors Inc. increased its stake in shares of Caterpillar by 3.8% in the fourth quarter. West Paces Advisors Inc. now owns 1,471 shares of the industrial products company’s stock valued at $843,000 after buying an additional 54 shares in the last quarter. Franklin Street Advisors Inc. NC raised its holdings in shares of Caterpillar by 3.6% in the fourth quarter. Franklin Street Advisors Inc. NC now owns 6,291 shares of the industrial products company’s stock valued at $3,604,000 after buying an additional 220 shares during the last quarter. Finally, Hartford Financial Management Inc. lifted its position in Caterpillar by 1.4% during the 4th quarter. Hartford Financial Management Inc. now owns 9,493 shares of the industrial products company’s stock worth $5,438,000 after buying an additional 130 shares in the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Caterpillar Stock Up 2.6%

NYSE CAT opened at $645.33 on Monday. Caterpillar has a twelve month low of $267.30 and a twelve month high of $655.68. The stock has a market cap of $302.00 billion, a PE ratio of 33.13, a PEG ratio of 2.43 and a beta of 1.57. The firm has a 50-day simple moving average of $591.07 and a 200 day simple moving average of $507.95. 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 posted its quarterly earnings results on Monday, November 3rd. The industrial products company reported $4.95 EPS for the quarter, beating the consensus estimate of $4.52 by $0.43. Caterpillar had a return on equity of 47.16% and a net margin of 14.34%.The firm had revenue of $17.64 billion during the quarter, compared to analysts’ expectations of $16.72 billion. During the same quarter in the prior year, the firm posted $5.17 EPS. The company’s revenue for the quarter was up 9.5% on a year-over-year basis. On average, research analysts forecast that Caterpillar will post 19.86 EPS for the current year.

Caterpillar Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Tuesday, January 20th will be paid a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a yield of 0.9%. The ex-dividend date is Tuesday, January 20th. Caterpillar’s dividend payout ratio is currently 31.01%.

About Caterpillar

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.