Caterpillar Inc. (NYSE: CAT) reached a new 52-week high on Tuesday as its shares surged following an upgrade from Citigroup. The financial services giant raised its price target from $500.00 to $540.00, propelling the stock to a peak of $473.24 before it settled at $471.97 at the close of trading. The trading volume exceeded 3.17 million shares, marking a significant uptick from its previous close of $466.54.
Several other financial institutions have also expressed confidence in Caterpillar’s prospects. Bank of America increased its price objective from $460.00 to $495.00, designating the stock with a “buy” rating in a note released on August 6. Melius Research upgraded Caterpillar from a “hold” to a “strong-buy” rating and set a price target of $500.00 in a report on July 9. Additionally, Barclays raised its target from $383.00 to $425.00 with an “equal weight” rating, while DA Davidson increased its target from $331.00 to $388.00 and assigned a “neutral” rating on July 22.
As of now, two analysts have rated the stock as a Strong Buy, eleven have issued Buy ratings, and five have assigned a Hold rating. According to MarketBeat, Caterpillar boasts an average rating of “Moderate Buy” and a consensus price target of $462.87.
Insider Trading Activity
In related news, Director Susan C. Schwab sold 2,324 shares of Caterpillar stock on August 15, at an average price of $410.00 per share, totaling approximately $952,840.00. Following this transaction, she retains 6,917 shares, valued at about $2.84 million, reflecting a 25.15% reduction in her ownership.
Additionally, Chairman Donald J. Umpleby III sold 17,168 shares on September 2, for around $7.09 million. After this sale, he owns 482,505 shares, valued at approximately $199.21 million, marking a 3.44% decrease in his position. Over the last quarter, insiders have sold a total of 21,653 shares, worth $8.94 million, and insiders currently own 0.33% of the company’s stock.
Institutional Investor Activity
Recent activity among institutional investors also reflects growing interest in Caterpillar. Kilter Group LLC acquired a new stake valued at about $27,000 during the second quarter. Mid American Wealth Advisory Group Inc. similarly established a new position for approximately $28,000. Compass Financial Services Inc. raised its holdings by 49.2% in the first quarter, now owning 94 shares worth $31,000 after increasing its position by 31 shares last quarter.
Other firms such as Family Legacy Financial Solutions LLC and RiverPark Advisors LLC also made new investments, each worth around $32,000. Institutional investors currently hold 70.98% of Caterpillar’s stock.
Caterpillar maintains a market capitalization of $221.11 billion and has a P/E ratio of 24.01. The firm reported earnings results on August 5, showing an EPS of $4.72, falling short of analysts’ expectations of $4.88 by $0.16. The company reported revenue of $16.57 billion during the quarter, surpassing predictions of $16.14 billion, although this marks a 0.7% decline from the previous year. Analysts project an EPS of 19.86 for the current fiscal year.
Caterpillar Inc. continues to be a significant player in the manufacturing and sales of construction and mining equipment, as well as off-highway engines and turbines, with a robust presence in global markets.