Stock on Demand This Week: Caterpillar Inc. (CAT)

Caterpillar Inc. (NYSE:CAT) saw a downside of -0.30% to close Friday at $195.16 after subtracting -$0.59 on the day. The 5-day average trading volume is 3,188,060 shares of the company’s common stock. It has gained $196.58 in the past week. An average of 3,873,585 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,518,310.

CAT’s 1-month performance is -4.99% or -$11.61 on its low of $186.98 reached on 09/21/21. The company’s shares have touched a 52-week low of $149.63 and high of $246.69, with the stock’s rally to the 52-week high happening on 06/04/21. YTD, CAT has achieved 7.22% or $13.14. However, the current price is down -20.89%% from the 52-week high price.


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Insider Transactions

On Jun 04, 129 days have gone by since the last insider trading activity for Caterpillar Inc. (CAT). Creed Joseph E (Group President) most recently sold 7,699 shares at $245.12 per share on Jun 04. This transaction cost the insider $1,887,179. Chief Accounting Officer, Marvel Gary Michael, sold 567 shares at a price of $230.00 on May 03. Then, on Mar 08, Group President Johnson Denise C sold 80,695 shares at a price of $219.82 per share. This transaction amounted to $17,738,397.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 834.87 and a low of 8.576. CAT stock has a beta of 0.91. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.34 while the price-to-book (PB) in the most recent quarter is 6.35, with the price to cash flow ratio at 22.88.

Caterpillar Inc. pays an annual dividend of $4.44 per share. Its dividend yield is 2.28% and the payout ratio is 51.20%. CAT’s most recent quarterly dividend payment was made on Aug. 20, when it paid $1.11 a share compared with prior rate of $1.03, up 7.21% from last year’s. The company has boosted its dividend for the last 28 consecutive years with the latest dividend increase of $0.08 reported on Wednesday June 9 2021. Measured over the last 3 years, the Dividend has been growing by 32.90% yearly.

It is projected that Caterpillar Inc.’s next ex-dividend date will be on 22-Oct. CAT is expected to distribute $1.11 as its next dividend.

Caterpillar Inc.’s quick ratio for the period ended June 29 was 1.10, with the current ratio over the same period at 1.60 meaning that CAT stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending June 29 was 1.56, while the total debt to equity was 2.23. In terms of profitability, the gross margin trailing 12 months is 31.20%. The trailing 12-month EBITDA margin is 17.75% while for the period ending June 29; Caterpillar Inc.’s operating margin was 13.00%. The firm’s gross profit as reported stood at $12.67 billion against revenue of $41.75 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected CAT to announce $2.07 per share in earnings in its latest quarter, but it posted $2.24, representing a 8.20% surprise. EBITDA for the quarter stood at more than $2.49 billion. CAT stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 64.82 billion, with total debt at $37.59 billion. Shareholders hold equity totaling $547.47 million

Technical Picture

Let’s look briefly at Caterpillar Inc. (CAT) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 08 October was 45.85% to suggest the stock is trending Neutral, with historical volatility in this time period at 21.44%.

The stock’s 5-day moving average is $193.68, reflecting a +0.43% or $0.83 change from its current price. CAT is currently trading -4.80% above its 20-day SMA, -18.50% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -8.19% and +10.52% respectively.

Stochastic %K and %D was 47.63% and 38.83% and the average true range (ATR) pointed at 4.24. The RSI (14) points at 43.67%, while the 14-day stochastic is at 54.50% with the period’s ATR at 4.34. The stock’s 9-day MACD Oscillator is pointing at -0.53 and -0.58 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Caterpillar Inc. (NYSE: CAT), Wolfe Research launched coverage with an Outperform rating. Analysts offering their rating for CAT stock have a consensus rating for the stock as Overweight. Currently, 2 brokerage advisors rate CAT as a “sell,”, while 13 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 2 rates the stock as overweight while 9 have offered a “buy” rating.

What is CAT’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $125.00 and a high of $303.00, with their median price target at $235.00. Looking at these predictions, the average price target given by analysts is for Caterpillar Inc. (CAT) stock is $233.52.

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