ValuEngine Downgrades Caterpillar (CAT) to Sell

Caterpillar (NYSE:CAT) was downgraded by stock analysts at ValuEngine from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday, January 29th.

Several other research firms have also recently issued reports on CAT. Zacks Investment Research cut shares of Caterpillar from a “buy” rating to a “hold” rating in a research report on Monday, October 8th. Macquarie restated a “sell” rating on shares of Caterpillar in a report on Thursday, October 11th. Robert W. Baird set a $171.00 price target on shares of Caterpillar and gave the company a “buy” rating in a report on Monday, December 3rd. Bank of America upgraded shares of Caterpillar from a “neutral” rating to a “buy” rating and boosted their price target for the company from $140.00 to $163.00 in a report on Monday, December 3rd. Finally, Credit Suisse Group reduced their price target on shares of Caterpillar from $183.00 to $173.00 and set an “outperform” rating for the company in a report on Friday, January 18th. Two analysts have rated the stock with a sell rating, twelve have issued a hold rating, sixteen have assigned a buy rating and one has given a strong buy rating to the stock. Caterpillar presently has a consensus rating of “Buy” and an average target price of $151.50.

Caterpillar stock opened at $133.10 on Tuesday. The stock has a market capitalization of $78.29 billion, a price-to-earnings ratio of 11.86, a P/E/G ratio of 0.58 and a beta of 1.46. The company has a debt-to-equity ratio of 1.78, a current ratio of 1.37 and a quick ratio of 0.96. Caterpillar has a 1 year low of $112.06 and a 1 year high of $164.60.

Caterpillar (NYSE:CAT) last released its quarterly earnings data on Monday, January 28th. The industrial products company reported $2.55 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.98 by ($0.43). The company had revenue of $14.34 billion during the quarter, compared to analysts’ expectations of $14.36 billion. Caterpillar had a net margin of 11.23% and a return on equity of 45.31%. Caterpillar’s quarterly revenue was up 11.2% on a year-over-year basis. During the same period last year, the firm earned $2.16 earnings per share. As a group, research analysts expect that Caterpillar will post 12.24 earnings per share for the current fiscal year.

A number of institutional investors have recently modified their holdings of CAT. Vanguard Group Inc. boosted its holdings in shares of Caterpillar by 1.1% in the 3rd quarter. Vanguard Group Inc. now owns 49,811,616 shares of the industrial products company’s stock valued at $7,595,773,000 after acquiring an additional 534,451 shares during the last quarter. Vanguard Group Inc boosted its holdings in shares of Caterpillar by 1.1% in the 3rd quarter. Vanguard Group Inc now owns 49,811,616 shares of the industrial products company’s stock valued at $7,595,773,000 after acquiring an additional 534,451 shares during the last quarter. BlackRock Inc. boosted its holdings in shares of Caterpillar by 1.5% in the 4th quarter. BlackRock Inc. now owns 35,985,874 shares of the industrial products company’s stock valued at $4,572,725,000 after acquiring an additional 529,926 shares during the last quarter. Oregon Public Employees Retirement Fund boosted its holdings in shares of Caterpillar by 6,835.4% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 9,054,500 shares of the industrial products company’s stock valued at $71,000 after acquiring an additional 8,923,946 shares during the last quarter. Finally, Northern Trust Corp boosted its holdings in shares of Caterpillar by 1.9% in the 4th quarter. Northern Trust Corp now owns 7,379,026 shares of the industrial products company’s stock valued at $937,652,000 after acquiring an additional 134,479 shares during the last quarter. Institutional investors and hedge funds own 68.90% of the company’s stock.

About Caterpillar

Caterpillar Inc manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives for construction, resource, and energy and transportation industries. Its Construction Industries segment offers asphalt pavers, backhoe loaders, compactors, cold planers, compact truck and multi-terrain loaders, forestry excavators, feller bunchers, harvesters, knuckleboom loaders, motorgraders, pipelayers, road reclaimers, site prep tractors, skidders, skid steer loaders, telehandlers, track-type loaders, wheel excavators, and track-type tractors.

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