Caterpillar (NYSE:CAT) Reaches New 1-Year Low – Here’s Why

Shares of Caterpillar Inc. (NYSE:CAT) reached a new 52-week low on Thursday . The stock traded as low as $305.00 and last traded at $305.75, with a volume of 3735052 shares traded. The stock had previously closed at $334.66.

Analysts Set New Price Targets

CAT has been the topic of a number of research analyst reports. StockNews.com cut shares of Caterpillar from a “buy” rating to a “hold” rating in a report on Tuesday, February 25th. Citigroup boosted their price objective on Caterpillar from $420.00 to $430.00 and gave the company a “buy” rating in a research note on Friday, January 31st. Bank of America decreased their target price on shares of Caterpillar from $452.00 to $414.00 and set a “buy” rating for the company in a research note on Friday, January 31st. Truist Financial lowered their price objective on shares of Caterpillar from $455.00 to $438.00 and set a “buy” rating on the stock in a research report on Monday, February 3rd. Finally, DA Davidson boosted their target price on Caterpillar from $350.00 to $357.00 and gave the stock a “neutral” rating in a research report on Tuesday, February 4th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and nine have given a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $383.80.

Caterpillar Trading Down 8.6 %

The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.89 and a current ratio of 1.42. The company’s 50 day moving average is $351.26 and its 200 day moving average is $372.07. The stock has a market capitalization of $146.13 billion, a price-to-earnings ratio of 13.85, a PEG ratio of 1.87 and a beta of 1.15.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, January 30th. The industrial products company reported $5.14 earnings per share for the quarter, beating the consensus estimate of $4.97 by $0.17. Caterpillar had a net margin of 16.65% and a return on equity of 58.18%. On average, research analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Andrew R. J. Bonfield sold 10,000 shares of the stock in a transaction that occurred on Thursday, January 16th. The shares were sold at an average price of $380.09, for a total value of $3,800,900.00. Following the sale, the chief financial officer now directly owns 45,182 shares in the company, valued at $17,173,226.38. This trade represents a 18.12 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Gerald Johnson purchased 100 shares of the firm’s stock in a transaction dated Tuesday, February 4th. The stock was purchased at an average cost of $365.57 per share, with a total value of $36,557.00. Following the acquisition, the director now directly owns 3,053 shares in the company, valued at $1,116,085.21. This trade represents a 3.39 % increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders own 0.29% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. Central Pacific Bank Trust Division grew its holdings in Caterpillar by 12.5% during the first quarter. Central Pacific Bank Trust Division now owns 1,179 shares of the industrial products company’s stock worth $389,000 after purchasing an additional 131 shares during the period. Versant Capital Management Inc raised its stake in Caterpillar by 25.9% in the 1st quarter. Versant Capital Management Inc now owns 1,455 shares of the industrial products company’s stock worth $480,000 after purchasing an additional 299 shares in the last quarter. Jacobs & Co. CA grew its position in Caterpillar by 0.9% during the first quarter. Jacobs & Co. CA now owns 38,845 shares of the industrial products company’s stock worth $12,811,000 after buying an additional 337 shares in the last quarter. MassMutual Private Wealth & Trust FSB increased its position in shares of Caterpillar by 1.1% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 57,517 shares of the industrial products company’s stock worth $18,969,000 after purchasing an additional 642 shares during the period. Finally, Fire Capital Management LLC acquired a new stake in shares of Caterpillar during the 4th quarter worth approximately $1,422,000. 70.98% of the stock is currently owned by institutional investors.

About Caterpillar

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.