On December 03, 2019, Caterpillar Inc. (NYSE:CAT) shares lost -2.03% or -2.9 points to close at $140.06 with a thin trading volume of 3.834 million shares. It opened the trading session at $140.05, the shares rose to $140.43 and dropped to $138.56, the range by which the price of stock traded the whole day. The company now has a market cap of $77.9 billion and currently has 556.32 million outstanding shares. Caterpillar Inc. (CAT) stock has plunged -3.07 percent of market value in 21 trading days.
CAT stock’s trailing 3-year beta is 1.53, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $10.3 share in the trailing 52 weeks. The stock’s value surged 10.22 percent year to date (YTD) compared to a rise of 3.24 percent in 52 week’s period. The firm’s shares are still trading -5.66 percent below its 1-year high of $148.47 and 25.33 percent up from 52-week low of $111.75. The average consensus ranking on the company is 2.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.
Caterpillar Inc. (CAT) is most likely going to rise 2.31 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $191-month high price target. This represents a whopping 36.37 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $143, which means a return possibility of 2.1 percent in comparison with the closing price of the stock of $140.06 on December 03. The lowest price set for the stock is $100 — just above -28.6 percent from CAT share price now.
Past records have indicated that shares in Caterpillar Inc. rose on 20 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of CAT’s Q4 earnings on February 03. Analysts are predicting revenue to suffer decline of -6 percent to $13.5B in the financial fourth quarter, while EPS will soar by about -6.27 percent to $2.39 per share. In the last quarter, it earnings of $2.94 per share came better than the $2.89283, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $12.76B, missing the $13.49B analysts had expected. Earnings are seen to rise by 93.3 percent this year, -0.31 percent in the coming year and the trend continues by 1.47 percent every year in the next 5 years.
Let’s take a glimpse at some insider activity at Caterpillar Inc. (NYSE:CAT) and observe the pattern. The earliest insider trade happened on 11/05/2019. Johnson Denise C parted with a total of 5.11 thousand shares of the firm at average share price of $146.68. The total amount for the sale was set at $749.24 thousand. On completing this exchange, the Group President account balance was 11.61 thousand shares. The stock lost -4.51 percent from that insider sale. On 11/01/2019, Johnson Denise C, Group President, did a sale of 68.99 thousand shares at a price of $143 per share. This got rid of 9.87 million shares from the insider’s fortune and the stock experienced a -2.06 percent retreat in price since the news became public. This exchange saw 16.91 thousand shares get out from the Group President account.
On 10/29/2019, Chief Accounting Officer Marvel Gary Michael recorded a sale transaction valued at $303.85 thousand. The sale at $139.38 a share has eliminated 2.18 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 0.49 percent increase since the transaction reporting date. The company insider is left with 1.55 thousand shares remaining in the account. Johnson Denise C, who works as Group President at the company, performed a sale of 14.78 thousand shares in a transaction worth $2.07 million. The disposal recorded on 10/28/2019 was priced at $140 per share. The stock price soared 0.04 percent since the transaction. Johnson Denise C currently holds a stake of 16.88 thousand in CAT stock which is worth $2.36 million after the insider selling.
The stock is lingering around the initial support level of $138.94. After this, the following support is at the zone of $137.81. Up until the time the CAT stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 47.52 on the daily chart, and this may be a cause for concern. In case the price goes below $137.81 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $140.81 level may cause a pull-back move approaching $141.55 mark.
Caterpillar Inc. (CAT) shares are trading at a P/E ratio of 13.3 times earnings posted in the trailing 12 months. The industry CAT deals with has an average P/E of 13.3. Its P/B ratio is standing at 5.2X compared to the 4.1 industry average. It is additionally sporting a 1.5 on the Price-to-Sales ratio, compared to the industry’s P/S average of 1. Caterpillar Inc. has a 32.1% gross profit margin, with its operating margin around 15.1%. Alongside this, the company’s net profit margin currently stands at 11%.