Caterpillar Inc. (NYSE:CAT) saw its shares soar to a new 52-week high during trading on Tuesday, reaching a peak of $473.24 after an upgrade from Citigroup, which raised its price target from $500.00 to $540.00. The stock closed at $471.97, showcasing a significant increase from its previous close of $466.54. The trading volume for the day reached 3,179,376 shares.
Analysts have been active in reassessing Caterpillar’s stock, with several firms adjusting their price targets. Bank of America revised its price objective for Caterpillar to $495.00 from $460.00, designating the stock with a “buy” rating in a note published on August 6, 2023. Melius Research upgraded Caterpillar from a “hold” to a “strong-buy” rating, setting a price target of $500.00. Similarly, Barclays increased its target from $383.00 to $425.00 and maintained an “equal weight” rating.
The analytical landscape includes further insights: DA Davidson raised its price target from $331.00 to $388.00, assigning a “neutral” rating in a report on July 22, 2023. Overall, two analysts have rated the stock as a “strong buy,” eleven have given it a “buy” rating, and five analysts have assigned a “hold” rating, leading to an average rating of “moderate buy” with a consensus price target of $462.87, according to data from MarketBeat.
Insider Trading Activity
In related news, insider trading activity has seen significant developments. On August 15, 2023, Director Susan C. Schwab sold 2,324 shares at an average price of $410.00, totaling $952,840.00. This transaction reduced her ownership to 6,917 shares, valued at approximately $2,835,970. Following this, on September 2, 2023, Chairman Donald J. Umpleby III sold 17,168 shares at an average price of $412.87, amounting to $7,088,152.16. After this sale, he retained 482,505 shares, worth nearly $199.2 million. Over the last quarter, insiders have sold a total of 21,653 shares valued at $8,943,642, indicating that insiders currently own 0.33% of the company’s stock.
Institutional Ownership and Financial Performance
Caterpillar’s institutional ownership remains strong, with 70.98% of the stock held by institutional investors. Recent transactions include Kilter Group LLC acquiring a new stake valued at approximately $27,000, and Mid American Wealth Advisory Group Inc. purchasing a new position worth about $28,000 during the second quarter. Additionally, Compass Financial Services Inc. increased its holdings by 49.2%, now owning 94 shares valued at $31,000.
The company reported its latest earnings on August 5, 2023, revealing earnings per share (EPS) of $4.72, falling short of analysts’ consensus estimates of $4.88 by $0.16. Caterpillar’s net margin for the quarter was 14.95%, with a return on equity of 48.95%. Revenue totaled $16.57 billion, exceeding analysts’ expectations of $16.14 billion, although it marked a 0.7% decline year-over-year.
As analysts project, Caterpillar Inc. is expected to post an EPS of 19.86 for the current year. The company, known for manufacturing and selling construction and mining equipment, continues to navigate a dynamic market environment, reinforcing its position as a key player in the industrial sector.
