As of Thursday close, Caterpillar Inc.’s (NYSE:CAT) stock was down -$1.2, moving down -0.43 percent to $281.13. The average number of shares traded per day over the past five days has been 1,783,640 shares. 5 times new highs have been achieved over the past 5 days, with a $11.83 gain in that time frame. In the last twenty days, the average volume was 2,252,460, while in the previous 50 days, it was 2,691,930.
Since last month, CAT stock retreated -2.24%. Shares of the company fell to $268.80 on 08/21/23, the lowest level in the past month. A 52-week high of $293.88 was reached on 08/02/23 after having rallying from a 52-week low of $160.60. Since the beginning of this year, CAT’s stock price has risen by 17.35% or $41.57, and marked a new high 12 times. However, the stock has declined by -4.34% since its 52-week high.
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CAT stock investors should be aware that Caterpillar Inc. (CAT) stock had its last reported insider trading activity 2 days ago on Aug 30. Fassino Anthony D., the Group President of the company, disposed of 2,740 shares for $282.57 on Aug 30. It resulted in a $774,242 divestment by the insider. Fassino Anthony D. sold 2,923 shares at an average price of $279.00 on Aug 29. The insider now owns 16,182 shares following the transaction. On Aug 09, Chief Human Resources Officer Johnson Cheryl H sold 18,294 shares at $286.33 apiece. The transaction was valued at $5,238,129.
Valuation Metrics
Right now, Caterpillar Inc. (CAT) has a P/E ratio of about 17.50. The stock’s beta is 1.12. Besides these, the trailing price-to-sales (P/S) ratio of 2.19, the price-to-book (PB) ratio of 7.91, and the price-to-cash flow ratio of 19.52 may also be considered.
The latest dividend of $1.30 per share was paid out, which is 8.33% more than last year’s $1.20. On Wednesday June 14 2023, a $0.10 dividend increase was announced.
Financial Health
In the three months ended June 29, Caterpillar Inc.’s quick ratio stood at 0.80, while its current ratio was 1.30, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 1.26, and the total debt-to-equity ratio was 2.07. On the profitability front, the trailing twelve-month gross margin is 34.00% percent. In the year ended June 29, EBITDA margin amounted to 19.09%, whereas operating margins totaled 16.20%. Based on annual data, CAT earned $18.08 billion in gross profit and brought in $59.43 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 11.00%. Return on equity (ROE) for the past 12 months was 49.30%.
In Caterpillar Inc.’s quarter-end financial report for June 29, it reported total debt of $8.54 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CAT’s revenue rose 17.73% to $15.86 billion during the quarter, while net income inched up to $17.32 billion. While analysts expected Caterpillar Inc. to report $4.58 quarterly earnings, the actual figure was $5.55 per share, beating the consensus estimate by 21.20%. During the quarter, the company generated $4.44 billion in EBITDA. The liabilities of Caterpillar Inc. were 67.17 billion at the end of its most recent quarter ended June 29. The value of shareholders’ equity is $510.14 million.
Technical Picture
This quick technical analysis looks at Caterpillar Inc.’s (CAT) price momentum. With a historical volatility rate of 16.36%, the RSI 9-day stood at 61.47% on 31 August.
With respect to its five-day moving average, the current Caterpillar Inc. price is up by +4.39% percent or $11.83. At present, CAT shares trade -0.11% below its 20-day simple moving average and +30.44% percent above its 100-day simple moving average. However, the stock is currently trading approximately +16.42% above its SMA50 and +18.88% above its SMA200.
Stochastic coefficient K was 70.47% and Stochastic coefficient D was 54.72%, while ATR was 5.38. Given the Stochastic reading of 73.39% for the 14-day period, the RSI (14) reading has been calculated as 60.52%. As of today, the MACD Oscillator reading stands at 6.04, while the 14-day reading stands at 5.34.
Analyst Ratings
Citigroup reiterated its a Neutral rating on Caterpillar Inc. (NYSE: CAT) in a note to investors. The analysts firm has however raised their price target to $270, representing a possible -17.14% increase in the stock price. Caterpillar Inc. (CAT) has been rated Overweight by analysts. According to 2 brokerage firms, CAT is a sell, and 12 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 0 analysts rate Caterpillar Inc. stock as buy, with 11 recommending it as overweight.
With a median target price of $295.00, the current consensus forecast for the stock is $175.00 – $364.00. Based on these forecasts, analysts predict Caterpillar Inc. (CAT) will achieve an average price target of $290.67.
