Caterpillar (NYSE:CAT) Stock Price Up 1.7% Following Analyst Upgrade

Caterpillar Inc. (NYSE:CAT)’s stock price rose 1.7% on Tuesday after Citigroup raised their price target on the stock from $760.00 to $785.00. Citigroup currently has a buy rating on the stock. Caterpillar traded as high as $730.79 and last traded at $716.7610. Approximately 3,034,662 shares changed hands during trading, an increase of 1% from the average daily volume of 3,003,102 shares. The stock had previously closed at $704.82.

CAT has been the topic of a number of other research reports. Jefferies Financial Group upped their target price on Caterpillar from $785.00 to $825.00 and gave the company a “buy” rating in a report on Friday. Daiwa Securities Group boosted their price objective on shares of Caterpillar from $640.00 to $790.00 in a research report on Wednesday, February 25th. CICC Research began coverage on shares of Caterpillar in a research report on Friday, February 6th. They issued an “outperform” rating for the company. Weiss Ratings reissued a “buy (b)” rating on shares of Caterpillar in a research note on Monday, December 29th. Finally, UBS Group reaffirmed a “neutral” rating and issued a $677.00 price target on shares of Caterpillar in a research note on Monday, February 2nd. Sixteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $730.50.

Insider Transactions at Caterpillar

In other news, insider Anthony D. Fassino sold 7,891 shares of the firm’s stock in a transaction on Friday, February 13th. The shares were sold at an average price of $776.90, for a total transaction of $6,130,517.90. Following the transaction, the insider owned 46,643 shares in the company, valued at approximately $36,236,946.70. This trade represents a 14.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Rodney Michael Shurman sold 2,278 shares of Caterpillar stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $759.61, for a total transaction of $1,730,391.58. Following the completion of the sale, the insider directly owned 1,443 shares of the company’s stock, valued at approximately $1,096,117.23. The trade was a 61.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 135,950 shares of company stock valued at $94,327,990. Insiders own 0.33% of the company’s stock.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Large commercial backlog: Atlas Energy Solutions signed agreements securing Caterpillar manufacturing capacity for power-generation equipment worth roughly $840 million through 2029 — a visible multi-year revenue backlog that supports industrial sales and aftermarket demand. Read More.
• Positive Sentiment: Analyst upgrades: Oppenheimer raised its CAT price target to $817 (from $729) and kept an Outperform rating, citing valuation relief and continued earnings power; other shops (Citigroup) also nudged targets higher — these lifts help drive buy-side interest. Read More.
• Positive Sentiment: Additional positive analyst activity and coverage: Citi raised its target to $785 and broker consensus remains bullish/“Moderate Buy,” reinforcing momentum from upgrades. Read More.
• Positive Sentiment: Product & tech story: New heavy electric-drive dozer and management commentary on AI/data initiatives underscore long-term product differentiation and margin opportunities. Read More. Read More.
• Neutral Sentiment: Media and analyst write-ups debating valuation: some pieces highlight a short-term pullback after a strong multi?year rally, offering both buy-the-dip and profit?taking narratives for investors to weigh. Read More.
• Negative Sentiment: Insider selling: the CEO reported a sale of about $1.8M in stock, which can be read negatively by some market participants even if routine. Read More.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in CAT. Kilter Group LLC acquired a new stake in shares of Caterpillar in the second quarter worth $27,000. Torren Management LLC bought a new position in Caterpillar in the 4th quarter worth $27,000. Marquette Asset Management LLC lifted its position in Caterpillar by 1,060.0% during the 3rd quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 53 shares during the last quarter. Frazier Financial Advisors LLC boosted its holdings in Caterpillar by 220.0% during the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after acquiring an additional 33 shares during the period. Finally, IFS Advisors LLC acquired a new stake in shares of Caterpillar in the fourth quarter valued at about $31,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Stock Up 1.7%

The company has a debt-to-equity ratio of 1.44, a current ratio of 1.44 and a quick ratio of 0.94. The firm has a market capitalization of $333.50 billion, a P/E ratio of 38.09, a price-to-earnings-growth ratio of 1.61 and a beta of 1.53. The business has a 50 day moving average price of $683.98 and a 200 day moving average price of $578.41.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, January 29th. The industrial products company reported $5.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.67 by $0.49. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The firm had revenue of $19.13 billion for the quarter, compared to analyst estimates of $17.81 billion. During the same quarter last year, the firm posted $5.14 EPS. The company’s revenue was up 17.9% on a year-over-year basis. On average, analysts predict that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Caterpillar Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, February 19th. Investors of record on Tuesday, January 20th were given a dividend of $1.51 per share. The ex-dividend date of this dividend was Tuesday, January 20th. This represents a $6.04 dividend on an annualized basis and a yield of 0.8%. Caterpillar’s payout ratio is 32.09%.

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.