Zacks Investment Research Lowers Caterpillar Inc. (CAT) to Hold
Caterpillar Inc. (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 Tuesday.
According to Zacks, “Caterpillar’s Asia Pacific sales increased 2% in Aug, the first positive reading since November 2012 while sales lagged in other regions. Also, in the Construction Industries, Asia Pacific remains a consistent bright spot with a 12% increase, the best performance this year and marking its sixth consecutive month of growth. The EAME construction industry is also improving and leading indicators of U.S. non-residential construction signal robust conditions ahead for the domestic construction industry. Further, the company wull benefit from its restructuring actions and share repurchases. Also, the company has a positive record of earnings surprises in the recent quarters. However, weak mining demand, lower oil prices, lower backlog and competitive pricing pressure will remain headwinds.”
Other analysts have also issued research reports about the company. Jefferies Group reaffirmed a “hold” rating on shares of Caterpillar in a research note on Wednesday, August 3rd. RBC Capital Markets set a $73.00 price objective on Caterpillar and gave the company a “hold” rating in a research report on Wednesday, July 27th. Vetr downgraded Caterpillar from a “buy” rating to a “hold” rating and set a $80.92 price objective for the company. in a research report on Wednesday, June 8th. TheStreet upgraded Caterpillar from a “hold” rating to a “buy” rating in a research report on Friday, July 29th. Finally, Royal Bank Of Canada lifted their price objective on Caterpillar from $70.00 to $73.00 and gave the company a “sector perform” rating in a research report on Wednesday, July 27th. Three investment analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and eight have assigned a buy rating to the stock. The stock has an average rating of “Hold” and a consensus price target of $73.19.
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Caterpillar (NYSE:CAT) opened at 88.47 on Tuesday. The firm has a market cap of $51.69 billion, a price-to-earnings ratio of 58.98 and a beta of 1.54. The company has a 50 day moving average price of $83.78 and a 200-day moving average price of $78.59. Caterpillar has a 52-week low of $56.36 and a 52-week high of $89.87.
Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Tuesday, July 26th. The company reported $1.09 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.96 by $0.13. The business had revenue of $10.34 billion for the quarter, compared to analyst estimates of $10.06 billion. Caterpillar had a return on equity of 12.37% and a net margin of 2.64%. Caterpillar’s quarterly revenue was down 16.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.27 EPS. Equities research analysts anticipate that Caterpillar will post $3.50 EPS for the current year.
In other Caterpillar news, Director Dennis A. Muilenburg acquired 1,930 shares of the company’s stock in a transaction on Friday, July 29th. The shares were purchased at an average price of $82.75 per share, for a total transaction of $159,707.50. Following the completion of the purchase, the director now directly owns 9,558 shares of the company’s stock, valued at $790,924.50. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Bradley M. Halverson sold 2,841 shares of the company’s stock in a transaction that occurred on Thursday, July 28th. The shares were sold at an average price of $82.73, for a total value of $235,035.93. Following the completion of the sale, the insider now owns 20,232 shares in the company, valued at approximately $1,673,793.36. The disclosure for this sale can be found here. Corporate insiders own 0.15% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in the stock. Advisory Services Network LLC raised its stake in Caterpillar by 5.3% in the third quarter. Advisory Services Network LLC now owns 9,796 shares of the company’s stock valued at $870,000 after buying an additional 492 shares in the last quarter. Bremer Trust National Association raised its stake in Caterpillar by 10.3% in the third quarter. Bremer Trust National Association now owns 4,066 shares of the company’s stock valued at $361,000 after buying an additional 381 shares in the last quarter. Atalanta Sosnoff Capital LLC acquired a new stake in Caterpillar during the third quarter valued at about $346,000. Peachtree Investment Advisors Inc. raised its stake in Caterpillar by 1.3% in the third quarter. Peachtree Investment Advisors Inc. now owns 11,875 shares of the company’s stock valued at $1,054,000 after buying an additional 150 shares in the last quarter. Finally, First American Trust FSB raised its stake in Caterpillar by 24.6% in the third quarter. First American Trust FSB now owns 43,658 shares of the company’s stock valued at $3,876,000 after buying an additional 8,608 shares in the last quarter. Hedge funds and other institutional investors own 69.03% of the company’s stock.
Caterpillar Company Profile
Caterpillar Inc is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Company operates through its three product segments: Resource Industries, Construction Industries, and Energy & Transportation. It also provides financing and related services through its Financial Products segment.
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