Caterpillar (NYSE:CAT) Raised to Buy at Standpoint Research

Standpoint Research upgraded shares of Caterpillar (NYSE:CAT) from a hold rating to a buy rating in a research report sent to investors on Wednesday, June 5th, Briefing.com Automated Import reports.

Several other research firms have also weighed in on CAT. UBS Group lowered Caterpillar from a buy rating to a sell rating and decreased their price target for the company from $154.00 to $125.00 in a report on Tuesday, February 26th. Bank of America set a $152.00 target price on Caterpillar and gave the stock a buy rating in a research note on Thursday, April 4th. Deutsche Bank lowered Caterpillar from a buy rating to a hold rating and reduced their target price for the stock from $152.00 to $128.00 in a research note on Wednesday, April 3rd. Zacks Investment Research upgraded Caterpillar from a hold rating to a buy rating and set a $157.00 target price on the stock in a research note on Tuesday, April 2nd. Finally, ValuEngine upgraded Caterpillar from a sell rating to a hold rating in a research note on Wednesday, May 1st. Three equities research analysts have rated the stock with a sell rating, twelve have assigned a hold rating and fourteen have issued a buy rating to the company’s stock. The company has a consensus rating of Hold and an average target price of $145.39.

Shares of NYSE CAT traded up $0.79 during midday trading on Wednesday, reaching $136.29. 10,468,077 shares of the stock traded hands, compared to its average volume of 3,715,121. The stock has a 50 day moving average of $126.66. Caterpillar has a one year low of $112.06 and a one year high of $159.37. The company has a market capitalization of $77.94 billion, a PE ratio of 12.15, a PEG ratio of 0.93 and a beta of 1.52. The company has a quick ratio of 0.98, a current ratio of 1.43 and a debt-to-equity ratio of 1.57.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Wednesday, April 24th. The industrial products company reported $2.94 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $2.84 by $0.10. Caterpillar had a return on equity of 45.08% and a net margin of 11.50%. The company had revenue of $13.47 billion for the quarter, compared to analyst estimates of $13.36 billion. During the same quarter in the prior year, the firm posted $2.82 EPS. Caterpillar’s quarterly revenue was up 4.7% compared to the same quarter last year. On average, equities research analysts forecast that Caterpillar will post 12.24 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 20th. Investors of record on Monday, July 22nd will be given a dividend of $1.03 per share. The ex-dividend date of this dividend is Friday, July 19th. This represents a $4.12 dividend on an annualized basis and a yield of 3.02%. This is an increase from Caterpillar’s previous quarterly dividend of $0.86. Caterpillar’s dividend payout ratio (DPR) is presently 30.66%.

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc increased its position in shares of Caterpillar by 1.1% in the third quarter. Vanguard Group Inc now owns 49,811,616 shares of the industrial products company’s stock valued at $7,595,773,000 after buying an additional 534,451 shares in the last quarter. BlackRock Inc. increased its position in shares of Caterpillar by 1.5% in the fourth quarter. BlackRock Inc. now owns 35,985,874 shares of the industrial products company’s stock valued at $4,572,725,000 after buying an additional 529,926 shares in the last quarter. Oregon Public Employees Retirement Fund increased its position in shares of Caterpillar by 6,835.4% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 9,054,500 shares of the industrial products company’s stock valued at $71,000 after buying an additional 8,923,946 shares in the last quarter. Northern Trust Corp increased its position in shares of Caterpillar by 1.9% in the fourth quarter. Northern Trust Corp now owns 7,379,026 shares of the industrial products company’s stock valued at $937,652,000 after buying an additional 134,479 shares in the last quarter. Finally, Geode Capital Management LLC increased its position in shares of Caterpillar by 4.8% in the fourth quarter. Geode Capital Management LLC now owns 7,022,665 shares of the industrial products company’s stock valued at $890,658,000 after buying an additional 321,277 shares in the last quarter. 65.45% of the stock is owned by institutional investors and hedge funds.

About Caterpillar

Caterpillar, Inc engages in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It operates through the following segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other.

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