Morgan Stanley Trims Caterpillar (NYSE:CAT) Target Price to $150.00

Caterpillar (NYSE:CAT) had its target price reduced by Morgan Stanley from $155.00 to $150.00 in a research note released on Wednesday morning, AnalystRatings.com reports. They currently have an overweight rating on the industrial products company’s stock.

A number of other analysts also recently issued reports on CAT. Credit Suisse Group lowered their price objective on shares of Caterpillar from $172.00 to $164.00 and set an outperform rating on the stock in a report on Wednesday, July 17th. Bank of America reiterated a buy rating and issued a $145.00 price objective (down from $150.00) on shares of Caterpillar in a report on Monday, September 9th. Stephens started coverage on shares of Caterpillar in a report on Wednesday, August 14th. They issued an underweight rating and a $100.00 price objective on the stock. Royal Bank of Canada reiterated a hold rating on shares of Caterpillar in a report on Wednesday, August 14th. Finally, Cleveland Research restated a hold rating on shares of Caterpillar in a report on Monday, September 30th. Four research analysts have rated the stock with a sell rating, fourteen have issued a hold rating and ten have assigned a buy rating to the stock. The company presently has a consensus rating of Hold and an average target price of $137.66.

NYSE CAT opened at $128.40 on Wednesday. The company has a quick ratio of 1.00, a current ratio of 1.43 and a debt-to-equity ratio of 1.66. Caterpillar has a 12-month low of $111.75 and a 12-month high of $144.77. The company has a market capitalization of $67.20 billion, a PE ratio of 10.68, a price-to-earnings-growth ratio of 0.86 and a beta of 1.52. The firm’s 50 day moving average is $123.42 and its 200-day moving average is $129.20.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Wednesday, July 24th. The industrial products company reported $2.83 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $3.12 by ($0.29). Caterpillar had a net margin of 11.26% and a return on equity of 43.35%. The business had revenue of $14.43 billion during the quarter, compared to analyst estimates of $14.47 billion. During the same quarter last year, the business earned $2.97 earnings per share. Caterpillar’s revenue for the quarter was up 3.0% on a year-over-year basis. As a group, sell-side analysts expect that Caterpillar will post 11.58 EPS for the current year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 20th. Shareholders of record on Monday, October 21st will be issued a $1.03 dividend. The ex-dividend date of this dividend is Friday, October 18th. This represents a $4.12 annualized dividend and a dividend yield of 3.21%. Caterpillar’s dividend payout ratio is currently 36.72%.

In other Caterpillar news, General Counsel Suzette M. Long sold 5,019 shares of the company’s stock in a transaction on Monday, September 30th. The shares were sold at an average price of $126.34, for a total value of $634,100.46. Following the transaction, the general counsel now directly owns 12,569 shares in the company, valued at $1,587,967.46. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.37% of the stock is owned by insiders.

Several large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. increased its holdings in shares of Caterpillar by 0.8% in the second quarter. Vanguard Group Inc. now owns 50,200,890 shares of the industrial products company’s stock valued at $6,841,880,000 after purchasing an additional 411,655 shares during the last quarter. Primecap Management Co. CA boosted its position in shares of Caterpillar by 0.5% in the second quarter. Primecap Management Co. CA now owns 9,398,329 shares of the industrial products company’s stock valued at $1,280,898,000 after acquiring an additional 46,928 shares during the period. Sanders Capital LLC boosted its position in shares of Caterpillar by 31.5% in the second quarter. Sanders Capital LLC now owns 6,243,500 shares of the industrial products company’s stock valued at $958,477,000 after acquiring an additional 1,496,100 shares during the period. Nuveen Asset Management LLC boosted its position in shares of Caterpillar by 1,092.5% in the second quarter. Nuveen Asset Management LLC now owns 4,518,229 shares of the industrial products company’s stock valued at $615,789,000 after acquiring an additional 4,139,332 shares during the period. Finally, Morgan Stanley boosted its position in shares of Caterpillar by 4.2% in the second quarter. Morgan Stanley now owns 4,367,073 shares of the industrial products company’s stock valued at $595,189,000 after acquiring an additional 174,165 shares during the period. Hedge funds and other institutional investors own 64.95% of the company’s stock.

Caterpillar Company Profile

Caterpillar, Inc engages in the manufacture of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. It operates through the following segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other.

Further Reading: Diversification

Analyst Recommendations for Caterpillar (NYSE:CAT)

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