Daiwa Capital Markets Downgrades Caterpillar (CAT) to Neutral

Daiwa Capital Markets cut shares of Caterpillar (NYSE:CAT) from an outperform rating to a neutral rating in a report published on Wednesday, Marketbeat.com reports. The brokerage currently has $160.00 price objective on the industrial products company’s stock.

A number of other brokerages also recently weighed in on CAT. Barclays set a $180.00 target price on Caterpillar and gave the company an overweight rating in a report on Wednesday, January 24th. Bank of America raised their target price on Caterpillar from $189.00 to $192.00 and gave the company a buy rating in a report on Friday, January 26th. Wells Fargo raised their target price on Caterpillar from $160.00 to $200.00 and gave the company an outperform rating in a report on Thursday, January 18th. Vetr raised Caterpillar from a strong sell rating to a sell rating and set a $151.72 target price on the stock in a report on Monday, January 15th. Finally, Jefferies Group reaffirmed a hold rating and issued a $170.00 target price on shares of Caterpillar in a report on Friday, January 26th. One investment analyst has rated the stock with a sell rating, ten have issued a hold rating, eighteen have issued a buy rating and one has given a strong buy rating to the company. Caterpillar presently has an average rating of Buy and a consensus target price of $167.95.

NYSE:CAT traded up $0.65 during trading hours on Wednesday, reaching $145.84. 3,275,118 shares of the company were exchanged, compared to its average volume of 6,138,753. The company has a market capitalization of $86,321.07, a P/E ratio of 20.99, a P/E/G ratio of 1.12 and a beta of 1.30. Caterpillar has a 1-year low of $97.74 and a 1-year high of $173.24. The company has a debt-to-equity ratio of 1.52, a current ratio of 1.36 and a quick ratio of 0.97.

Caterpillar (NYSE:CAT) last issued its quarterly earnings results on Tuesday, April 24th. The industrial products company reported $2.82 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $2.11 by $0.71. The business had revenue of $12.86 billion for the quarter, compared to the consensus estimate of $11.99 billion. Caterpillar had a return on equity of 34.38% and a net margin of 4.59%. The firm’s quarterly revenue was up 30.9% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.28 earnings per share. sell-side analysts anticipate that Caterpillar will post 10.75 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Saturday, May 19th. Investors of record on Monday, April 23rd will be given a dividend of $0.78 per share. This represents a $3.12 annualized dividend and a yield of 2.14%. The ex-dividend date of this dividend is Friday, April 20th. Caterpillar’s dividend payout ratio is currently 45.35%.

In other news, General Counsel Suzette M. Long sold 528 shares of Caterpillar stock in a transaction dated Tuesday, January 30th. The stock was sold at an average price of $160.46, for a total value of $84,722.88. Following the completion of the transaction, the general counsel now directly owns 19,646 shares of the company’s stock, valued at approximately $3,152,397.16. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Thomas A. Pellette sold 95,199 shares of Caterpillar stock in a transaction dated Wednesday, January 31st. The stock was sold at an average price of $163.09, for a total value of $15,526,004.91. Following the completion of the transaction, the insider now directly owns 96,268 shares of the company’s stock, valued at $15,700,348.12. The disclosure for this sale can be found here. 0.14% of the stock is owned by company insiders.

Several hedge funds have recently bought and sold shares of CAT. Ameritas Investment Partners Inc. raised its position in shares of Caterpillar by 2.8% in the 3rd quarter. Ameritas Investment Partners Inc. now owns 23,952 shares of the industrial products company’s stock worth $2,890,000 after acquiring an additional 656 shares in the last quarter. Wealthcare Advisory Partners LLC bought a new position in shares of Caterpillar during the third quarter valued at about $612,000. Cetera Investment Advisers raised its stake in shares of Caterpillar by 10.7% during the third quarter. Cetera Investment Advisers now owns 9,852 shares of the industrial products company’s stock valued at $1,220,000 after acquiring an additional 955 shares during the last quarter. Belpointe Asset Management LLC bought a new position in shares of Caterpillar during the third quarter valued at about $554,000. Finally, Cypress Capital Group raised its stake in shares of Caterpillar by 6.9% during the third quarter. Cypress Capital Group now owns 10,058 shares of the industrial products company’s stock valued at $1,254,000 after acquiring an additional 650 shares during the last quarter. 69.23% of the stock is owned by hedge funds and other institutional investors.

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About Caterpillar

Caterpillar Inc manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives for construction, resource, and energy and transportation industries. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact truck and multi-terrain loaders, forestry excavators, feller bunchers, harvesters, knuckleboom loaders, motorgraders, pipelayers, road reclaimers, site prep tractors, skidders, skid steer loaders, telehandlers, track-type loaders, wheel excavators, and track-type tractors.

Analyst Recommendations for Caterpillar (NYSE:CAT)

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