Caterpillar (NYSE:CAT) Downgraded by StockNews.com to “Hold”

StockNews.com cut shares of Caterpillar (NYSE:CAT) from a buy rating to a hold rating in a research report released on Thursday morning.

CAT has been the subject of several other reports. Jefferies Financial Group increased their price target on Caterpillar from $455.00 to $475.00 and gave the company a “buy” rating in a report on Friday, December 6th. Bank of America upped their price target on Caterpillar from $376.00 to $434.00 and gave the stock a “buy” rating in a report on Monday, September 30th. Citigroup boosted their target price on shares of Caterpillar from $435.00 to $460.00 and gave the stock a “buy” rating in a research report on Monday, December 9th. Evercore ISI lowered shares of Caterpillar from an “in-line” rating to an “underperform” rating and raised their price target for the company from $321.00 to $365.00 in a report on Wednesday, November 13th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Caterpillar from $500.00 to $515.00 and gave the stock an “overweight” rating in a report on Monday, December 9th. Four equities research analysts have rated the stock with a sell rating, seven have given a hold rating and seven have assigned a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $384.33.

Caterpillar Price Performance

CAT stock opened at $351.01 on Thursday. The stock has a market capitalization of $169.47 billion, a price-to-earnings ratio of 16.27, a price-to-earnings-growth ratio of 1.92 and a beta of 1.13. The stock’s fifty day simple moving average is $382.16 and its 200-day simple moving average is $365.41. Caterpillar has a 52-week low of $276.94 and a 52-week high of $418.50. The company has a quick ratio of 0.86, a current ratio of 1.40 and a debt-to-equity ratio of 1.33.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Wednesday, October 30th. The industrial products company reported $5.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.33 by ($0.16). The company had revenue of $16.11 billion for the quarter, compared to analysts’ expectations of $16.37 billion. Caterpillar had a net margin of 16.26% and a return on equity of 59.09%. The firm’s quarterly revenue was down 4.2% on a year-over-year basis. During the same period in the prior year, the firm earned $5.52 earnings per share. Equities research analysts expect that Caterpillar will post 21.68 EPS for the current year.

Caterpillar Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, February 20th. Investors of record on Tuesday, January 21st will be given a $1.41 dividend. The ex-dividend date of this dividend is Tuesday, January 21st. This represents a $5.64 annualized dividend and a dividend yield of 1.61%. Caterpillar’s dividend payout ratio (DPR) is presently 26.15%.

Insider Buying and Selling

In related news, insider Cheryl H. Johnson sold 2,664 shares of the stock in a transaction dated Monday, November 4th. The stock was sold at an average price of $378.84, for a total value of $1,009,229.76. Following the completion of the sale, the insider now directly owns 12,951 shares of the company’s stock, valued at approximately $4,906,356.84. This represents a 17.06 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Daniel M. Dickinson sold 1,300 shares of Caterpillar stock in a transaction dated Wednesday, November 6th. The shares were sold at an average price of $418.00, for a total value of $543,400.00. Following the transaction, the director now directly owns 4,976 shares in the company, valued at approximately $2,079,968. This trade represents a 20.71 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 23,868 shares of company stock valued at $9,679,489. Company insiders own 0.29% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in CAT. Fairscale Capital LLC bought a new stake in shares of Caterpillar in the 2nd quarter valued at approximately $36,000. Capital Performance Advisors LLP acquired a new stake in Caterpillar in the third quarter valued at approximately $36,000. Kimelman & Baird LLC grew its position in Caterpillar by 42.9% in the third quarter. Kimelman & Baird LLC now owns 100 shares of the industrial products company’s stock worth $39,000 after acquiring an additional 30 shares in the last quarter. HWG Holdings LP acquired a new position in shares of Caterpillar during the 2nd quarter worth $54,000. Finally, SOA Wealth Advisors LLC. lifted its stake in shares of Caterpillar by 47.2% in the 3rd quarter. SOA Wealth Advisors LLC. now owns 156 shares of the industrial products company’s stock valued at $61,000 after purchasing an additional 50 shares during the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

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.