Caterpillar Inc. (CAT) Upgraded to “Buy” by Zacks Investment Research
Caterpillar Inc. (NYSE:CAT) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Thursday. The brokerage presently has a $98.00 price target on the stock. Zacks Investment Research’s price objective indicates a potential upside of 12.68% from the company’s previous close.
According to Zacks, “Caterpillar is poised to benefit from the steady growth in construction activities. Asia Pacific is improving consistently, logging a 12% increase in Aug, the best performance this year and marking its sixth consecutive month of growth. The EAME construction industry has also witnessed positive growth in three of the past four months. Also, leading indicators of U.S. non-residential construction signal robust conditions ahead for the domestic construction industry. In line with its efforts to cut down costs, reduce capacity in the wake of lower demand, Caterpillar is shifting production from its Belgium facility. This, along with other restructuring actions as well as share repurchases will help the mining behemoth to weather the weak mining environment. Also, the company has a positive record of earnings surprises in the recent quarters.”
Several other analysts also recently issued reports on the company. Barclays PLC lifted their price target on Caterpillar from $78.00 to $90.00 and gave the company an “equal weight” rating in a research note on Wednesday. Vetr raised Caterpillar from a “hold” rating to a “buy” rating and set a $96.01 price target on the stock in a research note on Wednesday. Jefferies Group lifted their price target on Caterpillar from $72.00 to $80.00 and gave the company a “hold” rating in a research note on Tuesday. Goldman Sachs Group Inc. raised Caterpillar from a “neutral” rating to a “buy” rating and lifted their price target for the company from $76.00 to $112.00 in a research note on Tuesday. Finally, Bank of America Corp. reissued a “hold” rating and issued a $92.00 price target on shares of Caterpillar in a research note on Monday, October 3rd. Three equities research analysts have rated the stock with a sell rating, thirteen have issued a hold rating and eleven have issued a buy rating to the stock. Caterpillar currently has an average rating of “Hold” and an average target price of $76.48.
This story is the sole property of American Banking News and it was originally published by American Banking News. If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. The original version of this article is available at https://www.americanbankingnews.com/2016/10/13/caterpillar-inc-cat-upgraded-to-buy-by-zacks-investment-research.html
Caterpillar (NYSE:CAT) traded down 0.70% during mid-day trading on Thursday, hitting $86.97. The stock had a trading volume of 5,676,991 shares. The company has a market capitalization of $50.81 billion, a P/E ratio of 57.98 and a beta of 1.54. The stock’s 50-day moving average is $84.22 and its 200 day moving average is $78.93. Caterpillar has a 52 week low of $56.36 and a 52 week high of $89.87.
Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Tuesday, July 26th. The company reported $1.09 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.96 by $0.13. The business had revenue of $10.34 billion for the quarter, compared to the consensus estimate of $10.06 billion. Caterpillar had a return on equity of 12.37% and a net margin of 2.64%. The firm’s revenue was down 16.0% compared to the same quarter last year. During the same quarter last year, the business posted $1.27 EPS. Equities analysts forecast that Caterpillar will post $3.50 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Saturday, November 19th. Investors of record on Monday, October 24th will be paid a $0.77 dividend. The ex-dividend date is Thursday, October 20th. This represents a $3.08 annualized dividend and a dividend yield of 3.54%. Caterpillar’s dividend payout ratio is 165.59%.
In other Caterpillar news, Director Dennis A. Muilenburg acquired 1,930 shares of Caterpillar stock in a transaction that occurred on Friday, July 29th. The shares were bought at an average price of $82.75 per share, with a total value of $159,707.50. Following the completion of the purchase, the director now directly owns 9,558 shares in the company, valued at approximately $790,924.50. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Bradley M. Halverson sold 2,841 shares of the business’s stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $82.73, for a total transaction of $235,035.93. Following the completion of the sale, the insider now directly owns 20,232 shares in the company, valued at approximately $1,673,793.36. The disclosure for this sale can be found here. 0.15% of the stock is currently owned by corporate insiders.
Hedge funds have recently modified their holdings of the company. Pittenger & Anderson Inc. boosted its stake in shares of Caterpillar by 1.9% in the second quarter. Pittenger & Anderson Inc. now owns 1,325 shares of the company’s stock valued at $100,000 after buying an additional 25 shares in the last quarter. Kelly Lawrence W & Associates Inc. CA boosted its stake in shares of Caterpillar by 15.4% in the first quarter. Kelly Lawrence W & Associates Inc. CA now owns 1,500 shares of the company’s stock worth $115,000 after buying an additional 200 shares during the period. Nelson Van Denburg & Campbell Wealth Management Group LLC boosted its stake in shares of Caterpillar by 266.3% in the second quarter. Nelson Van Denburg & Campbell Wealth Management Group LLC now owns 1,513 shares of the company’s stock worth $115,000 after buying an additional 1,100 shares during the period. CapWealth Advisors LLC boosted its stake in shares of Caterpillar by 6.3% in the second quarter. CapWealth Advisors LLC now owns 1,685 shares of the company’s stock worth $128,000 after buying an additional 100 shares during the period. Finally, Archford Capital Strategies LLC boosted its stake in shares of Caterpillar by 1,424.3% in the second quarter. Archford Capital Strategies LLC now owns 1,692 shares of the company’s stock worth $128,000 after buying an additional 1,581 shares during the period. 69.03% of the stock is currently owned by institutional investors.
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.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Caterpillar Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Caterpillar Inc. and related companies with MarketBeat.com's FREE daily email newsletter.