Caterpillar (NYSE:CAT) Trading Up 3.1% on Analyst Upgrade

Shares of Caterpillar Inc. (NYSE:CAT) traded up 3.1% on Wednesday after Wolfe Research raised their price target on the stock from $670.00 to $750.00. Wolfe Research currently has an outperform rating on the stock. Caterpillar traded as high as $740.01 and last traded at $730.5460. 2,361,813 shares were traded during trading, a decline of 18% from the average session volume of 2,865,770 shares. The stock had previously closed at $708.46.

Several other equities research analysts have also recently weighed in on CAT. Robert W. Baird set a $805.00 price objective on shares of Caterpillar in a research report on Friday, January 30th. Barclays raised their price target on Caterpillar from $625.00 to $700.00 and gave the company an “equal weight” rating in a report on Tuesday. CICC Research started coverage on shares of Caterpillar in a report on Friday, February 6th. They set an “outperform” rating for the company. Wells Fargo & Company raised their price target on Caterpillar from $756.00 to $870.00 and gave the stock an “overweight” rating in a research report on Wednesday, February 25th. Finally, DA Davidson upped their price objective on Caterpillar from $569.00 to $650.00 and gave the company a “neutral” rating in a report on Monday, February 2nd. Sixteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $737.55.

Insider Activity

In other news, CAO William E. Schaupp sold 972 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $764.20, for a total value of $742,802.40. Following the completion of the transaction, the chief accounting officer owned 824 shares in the company, valued at $629,700.80. This trade represents a 54.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Rodney Michael Shurman sold 2,278 shares of the company’s stock in a transaction dated Monday, February 23rd. The stock was sold at an average price of $759.61, for a total value of $1,730,391.58. Following the sale, the insider owned 1,443 shares in the company, valued at $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 ninety days, insiders sold 125,950 shares of company stock worth $88,577,390. 0.33% of the stock is currently owned by company insiders.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Wolfe Research raised its price target to $750 and kept an “Outperform” rating, signaling bullish analyst momentum that likely supported buying. Read More.
• Positive Sentiment: Caterpillar cleared its 50?day moving average amid record revenues, rising estimates and a large order backlog — technical and fundamental signs that attract momentum buyers. Read More.
• Positive Sentiment: Market-wide rebound (Dow strength) and easing geopolitical risk helped cyclical industrial names, including Caterpillar, recover — a macro tailwind for demand expectations. Read More.
• Neutral Sentiment: Media pieces and investor-screening attention (Zacks/Yahoo) are raising visibility on CAT; that can amplify flows but doesn’t change fundamentals by itself. Read More.
• Neutral Sentiment: Changes in U.S. corporate tax law reduce Caterpillar’s cash tax payments while increasing reported book tax rates — positive for cash flow forecasts but complicates comparisons of GAAP earnings. Read More.
• Neutral Sentiment: Numerous consumer/outdoor news stories about real “caterpillars” are trending but are unrelated to Caterpillar Inc.’s business and unlikely to affect the stock. Read More.
• Negative Sentiment: Barclays raised its target to $700 but kept an “Equal Weight” rating — that implies limited upside vs. current levels and could cap further gains if other firms turn cautious. Read More.
• Negative Sentiment: Investor discussion and filings highlight margin compression and operating?income pressure despite revenue growth; profitability and pricing vs. costs remain near?term risks to monitor. Read More.
• Negative Sentiment: Large institutional reductions (e.g., UBS, Norges Bank) and significant insider selling have been reported — these flows can weigh on the stock if sustained. Read More.

Hedge Funds Weigh In On Caterpillar

A number of institutional investors have recently bought and sold shares of the business. Advisory Resource Group increased its holdings in shares of Caterpillar by 0.8% during the 4th quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company’s stock worth $935,000 after acquiring an additional 13 shares during the last quarter. Invst LLC raised its position in shares of Caterpillar by 1.9% in the fourth quarter. Invst LLC now owns 753 shares of the industrial products company’s stock valued at $431,000 after purchasing an additional 14 shares during the period. Plancorp LLC lifted its stake in shares of Caterpillar by 0.5% during the 4th quarter. Plancorp LLC now owns 2,777 shares of the industrial products company’s stock worth $1,591,000 after buying an additional 15 shares during the last quarter. BlueStem Wealth Partners LLC grew its stake in Caterpillar by 1.3% in the 4th quarter. BlueStem Wealth Partners LLC now owns 1,192 shares of the industrial products company’s stock valued at $683,000 after buying an additional 15 shares during the last quarter. Finally, KDT Advisors LLC lifted its position in Caterpillar by 2.3% during the fourth quarter. KDT Advisors LLC now owns 657 shares of the industrial products company’s stock worth $376,000 after acquiring an additional 15 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Stock Performance

The stock has a 50 day moving average price of $710.65 and a two-hundred day moving average price of $609.31. The company has a market cap of $339.91 billion, a P/E ratio of 38.82, a price-to-earnings-growth ratio of 1.57 and a beta of 1.53. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44.

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

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.