Caterpillar (NYSE:CAT) Sets New 1-Year High – What’s Next?

Caterpillar Inc. (NYSE:CAT) hit a new 52-week high on Monday . The company traded as high as $1,007.00 and last traded at $1,009.3030, with a volume of 72412 shares changing hands. The stock had previously closed at $985.82.

Analyst Upgrades and Downgrades

CAT has been the topic of several recent research reports. Truist Financial set a $1,043.00 price target on Caterpillar in a research note on Friday, May 1st. Weiss Ratings reissued a “buy (b-)” rating on shares of Caterpillar in a report on Friday, May 8th. Morgan Stanley set a $915.00 target price on Caterpillar and gave the stock an “equal weight” rating in a research note on Friday, May 1st. Rothschild & Co Redburn raised their price target on Caterpillar from $700.00 to $950.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. Finally, Oppenheimer set a $980.00 price target on Caterpillar and gave the stock an “outperform” rating in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $935.09.

Caterpillar Price Performance

The firm has a 50-day moving average of $875.06 and a 200-day moving average of $741.59. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The firm has a market capitalization of $463.95 billion, a P/E ratio of 49.99, a PEG ratio of 1.95 and a beta of 1.59.

Caterpillar (NYSE:CAT) last posted its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts’ consensus estimates of $4.65 by $0.89. The business had revenue of $17.41 billion during the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company’s quarterly revenue was up 22.2% compared to the same quarter last year. During the same quarter last year, the company earned $4.25 EPS. As a group, analysts predict that Caterpillar Inc. will post 24.64 EPS for the current year.

Caterpillar Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a $1.63 dividend. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date of this dividend is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.6%. Caterpillar’s payout ratio is presently 30.06%.

Insider Buying and Selling at Caterpillar

In other news, insider Denise C. Johnson sold 12,605 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the transaction, the insider directly owned 49,825 shares of the company’s stock, valued at $45,236,615.75. The trade was a 20.19% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Anthony D. Fassino sold 16,283 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the transaction, the insider owned 46,041 shares in the company, valued at approximately $42,210,388.80. This trade represents a 26.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders have sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is owned by company insiders.

Hedge Funds Weigh In On Caterpillar

Several hedge funds and other institutional investors have recently modified their holdings of CAT. Lam Group Inc. purchased a new position in Caterpillar in the first quarter worth about $26,000. Torren Management LLC purchased a new stake in shares of Caterpillar during the 4th quarter valued at about $27,000. Frazier Financial Advisors LLC lifted its stake in shares of Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 33 shares during the period. Cedar Mountain Advisors LLC boosted its holdings in shares of Caterpillar by 82.1% in the first quarter. Cedar Mountain Advisors LLC now owns 51 shares of the industrial products company’s stock worth $36,000 after buying an additional 23 shares during the last quarter. Finally, IFS Advisors LLC bought a new stake in Caterpillar during the fourth quarter valued at approximately $31,000. 70.98% of the stock is owned by institutional investors.

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.