Caterpillar Inc. [NYSE: CAT] slipped around -12.46 points on Wednesday, while shares priced at $155.23 at the close of the session, down -7.43%. The company report on October 27, 2020 that Cat Financial Announces Third-Quarter 2020 Results.
Cat Financial reported third-quarter 2020 revenues of $598 million, a decrease of $150 million, or 20%, compared with the third quarter of 2019. Third-quarter 2020 profit was $48 million, an $81 million, or 63%, decrease from the third quarter of 2019.
The decrease in revenues was primarily due to a $76 million unfavorable impact from lower average financing rates and a $40 million unfavorable impact from lower average earning assets.
Caterpillar Inc. stock is now 5.11% up from its year-to-date (YTD) trading value. CAT Stock saw the intraday high of $162.3799 and lowest of $155.23 per share. The company’s 52-week high price is 171.26, which means current price is +77.41% above from all time high which was touched on 10/20/20.
Compared to the average trading volume of 3.29M shares, CAT reached a trading volume of 9047277 in the most recent trading day, which is why market watchdogs consider the stock to be active.
What do top market gurus say about Caterpillar Inc. [CAT]?
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CAT shares is $165.41 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CAT stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Wells Fargo have made an estimate for Caterpillar Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on October 16, 2020. While these analysts kept the previous recommendation, Bernstein raised their target price to Mkt Perform. The new note on the price target was released on September 23, 2020, representing the official price target for Caterpillar Inc. stock. Previously, the target price had yet another raise to $140, while Atlantic Equities analysts kept a Neutral rating on CAT stock.
The Average True Range (ATR) for Caterpillar Inc. is set at 5.33, with the Price to Sales ratio for CAT stock in the period of the last 12 months amounting to 1.90. The Price to Book ratio for the last quarter was 6.12. Price to Free Cash Flow for CAT in the course of the last twelve months was 22.46 with Quick ratio for the last quarter at 1.00.
How has CAT stock performed recently?
Caterpillar Inc. [CAT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 2.69. With this latest performance, CAT shares gained by 2.44% in over the last four-week period, additionally plugging by 44.68% over the last 6 months – not to mention a rise of 6.05% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CAT stock in for the last two-week period is set at 46.22, with the RSI for the last a single of trading hit 43.01, and the three-weeks RSI is set at 49.10 for Caterpillar Inc. [CAT]. The present Moving Average for the last 50 days of trading for this stock 154.09, while it was recorded at 159.58 for the last single week of trading, and 131.64 for the last 200 days.
Caterpillar Inc. [CAT]: Deeper insight into the fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Caterpillar Inc. [CAT] shares currently have an operating margin of +15.79 and a Gross Margin at +29.17. Caterpillar Inc.’s Net Margin is presently recorded at +11.33.
Return on Total Capital for CAT is now 16.40, given the latest momentum, and Return on Invested Capital for the company is 15.16. Return on Equity for this stock inclined to 42.57, with Return on Assets sitting at 7.76. When it comes to the capital structure of this company, Caterpillar Inc. [CAT] has a Total Debt to Total Equity ratio set at 262.48. Additionally, CAT Total Debt to Total Capital is recorded at 72.41, with Total Debt to Total Assets ending up at 48.81. Long-Term Debt to Equity for the company is recorded at 183.32, with the Long-Term Debt to Total Capital now at 50.57.
Reflecting on the efficiency of the workforce at the company, Caterpillar Inc. [CAT] managed to generate an average of $59,560 per employee. Receivables Turnover for the company is 3.04 with a Total Asset Turnover recorded at a value of 0.69.Caterpillar Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.00 and a Current Ratio set at 1.50.
Earnings analysis for Caterpillar Inc. [CAT]
With the latest financial reports released by the company, Caterpillar Inc. posted 2.63/share EPS, while the average EPS was predicted by analysts to be reported at 2.37/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 11.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CAT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Caterpillar Inc. go to -2.04%.
Insider trade positions for Caterpillar Inc. [CAT]
There are presently around $56,600 million, or 68.60% of CAT stock, in the hands of institutional investors. The top three institutional holders of CAT stocks are: VANGUARD GROUP INC with ownership of 46,935,970, which is approximately -6.368% of the company’s market cap and around 0.10% of the total institutional ownership; STATE STREET CORP, holding 44,137,153 shares of the stock with an approximate value of $6.85 billion in CAT stocks shares; and BLACKROCK INC., currently with $5.57 billion in CAT stock with ownership of nearly 3.051% of the company’s market capitalization.
Positions in Caterpillar Inc. stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 710 institutional holders increased their position in Caterpillar Inc. [NYSE:CAT] by around 21,126,595 shares. Additionally, 732 investors decreased positions by around 21,941,908 shares, while 240 investors held positions by with 321,554,071 shares. The mentioned changes placed institutional holdings at 364,622,574 shares, according to the latest SEC report filing. CAT stock had 169 new institutional investments in for a total of 3,632,639 shares, while 100 institutional investors sold positions of 1,539,355 shares during the same period.