February 7, 2023

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Zacks Investment Research Lowers Caterpillar (NYSE:CAT) to Hold

Caterpillar (NYSE:CAT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday, Zacks.com reports. They currently have a $226.00 price objective on the industrial products company’s stock. Zacks Investment Research‘s price objective would suggest a potential upside of 4.15% from the stock’s previous close.

According to Zacks, “Caterpillar’s backlog was $16.9 billion at the end of the first quarter of 2021, up $2.7 billion sequentially. This bodes well for its performance in the second quarter. However, higher input costs will hurt margins in the quarter. In 2021, results are expected to improve, aided by strong demand in China and pickup in global manufacturing activity. The Construction Industries segment is expected to gain on strength in residential construction and recovery in non-residential construction in the United States, and robust construction demand in Brazil. The Resource Industries segment wil likely benefit from improving commodity prices. Savings from its restructuring actions will also boost margins. Further, a robust liquidity position, investments in expanded offerings, and services and digital initiatives are expected to drive growth.”

Several other analysts have also recently issued reports on CAT. Citigroup increased their price target on shares of Caterpillar from $205.00 to $245.00 in a research report on Tuesday, March 16th. BMO Capital Markets upped their target price on shares of Caterpillar from $190.00 to $230.00 and gave the stock a “market perform” rating in a research note on Friday, April 30th. Evercore ISI upped their target price on shares of Caterpillar from $240.00 to $303.00 in a research note on Wednesday, May 12th. Daiwa Capital Markets lowered shares of Caterpillar from an “outperform” rating to a “neutral” rating in a research note on Friday, March 5th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $264.00 price target on shares of Caterpillar in a research note on Thursday, May 27th. Two research analysts have rated the stock with a sell rating, twelve have given a hold rating and eleven have issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $223.86.


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NYSE CAT traded up $1.90 during trading hours on Wednesday, reaching $217.00. The company had a trading volume of 107,719 shares, compared to its average volume of 4,222,745. The firm has a 50-day moving average price of $231.32. Caterpillar has a 1-year low of $124.01 and a 1-year high of $246.69. The company has a debt-to-equity ratio of 1.59, a current ratio of 1.60 and a quick ratio of 1.15. The company has a market capitalization of $118.87 billion, a PE ratio of 34.72, a P/E/G ratio of 1.88 and a beta of 0.93.

Caterpillar (NYSE:CAT) last posted its earnings results on Thursday, April 29th. The industrial products company reported $2.87 EPS for the quarter, beating the Zacks’ consensus estimate of $1.93 by $0.94. Caterpillar had a net margin of 7.99% and a return on equity of 26.63%. The company had revenue of $11.89 billion for the quarter, compared to analysts’ expectations of $11 billion. During the same quarter in the prior year, the company posted $1.60 earnings per share. Caterpillar’s revenue for the quarter was up 11.8% compared to the same quarter last year. As a group, research analysts forecast that Caterpillar will post 9.6 EPS for the current fiscal year.

In other Caterpillar news, Director David Maclennan bought 420 shares of Caterpillar stock in a transaction on Wednesday, May 5th. The stock was bought at an average price of $237.86 per share, with a total value of $99,901.20. Following the completion of the acquisition, the director now owns 890 shares in the company, valued at $211,695.40. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Joseph E. Creed sold 7,699 shares of the firm’s stock in a transaction on Friday, June 4th. The shares were sold at an average price of $245.12, for a total value of $1,887,178.88. The disclosure for this sale can be found here. 0.18% of the stock is owned by company insiders.

Institutional investors have recently added to or reduced their stakes in the business. Brand Asset Management Group Inc. acquired a new position in shares of Caterpillar during the 1st quarter worth $26,000. Elmwood Wealth Management Inc. acquired a new position in shares of Caterpillar during the 1st quarter worth $26,000. IronBridge Private Wealth LLC acquired a new position in shares of Caterpillar during the 4th quarter worth $30,000. Oder Investment Management LLC acquired a new position in shares of Caterpillar during the 4th quarter worth $34,000. Finally, Versant Capital Management Inc increased its position in Caterpillar by 51.0% during the 1st quarter. Versant Capital Management Inc now owns 145 shares of the industrial products company’s stock worth $34,000 after purchasing an additional 49 shares in the last quarter. 68.11% of the stock is owned by institutional investors.

Caterpillar Company Profile

Caterpillar Inc manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Its Construction Industries segment offers asphalt pavers, compactors, cold planers, motorgraders, pipelayers, road reclaimers, telehandlers, and utility vehicles; backhoe, compact track, multi-terrain, skid steer, and track-type loaders; forestry and wheel excavators; and site prep and track-type tractors.

See Also: Cash Asset Ratio

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