Caterpillar Inc. [CAT] is 11.15% higher this YTD. Is it still time to buy?

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Caterpillar Inc. [NYSE: CAT] gained 1.19% on the last trading session, reaching $229.80 price per share at the time. The company report on June 8, 2022 that Caterpillar Inc. Increases Dividend.


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The Board of Directors of Caterpillar Inc. (NYSE: CAT) voted today to raise the quarterly cash dividend by nine cents, an 8% increase, to one dollar and twenty cents ($1.20) per share of common stock, payable August 19, 2022, to shareholders of record at the close of business on July 20, 2022.

“Our dividend increase reflects our strong balance sheet and liquidity position as well as confidence in continued strong free cash flow generation from Machinery, Energy & Transportation (ME&T),” said Caterpillar Chairman and CEO Jim Umpleby. “We intend to return substantially all ME&T free cash flow to shareholders over time through dividends and share repurchases.”.

Caterpillar Inc. represents 534.50 million in outstanding shares, while the company has a total market value of $120.98 billion with the latest information. CAT stock price has been found in the range of $224.62 to $232.35.

If compared to the average trading volume of 3.20M shares, CAT reached a trading volume of 4161189 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying 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 $235.80 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 Equal Weight, with their previous recommendation back on March 11, 2022. While these analysts kept the previous recommendation, Jefferies raised their target price from $215 to $260. The new note on the price target was released on March 08, 2022, representing the official price target for Caterpillar Inc. stock. Previously, the target price had yet another raise from $235 to $250, while UBS kept a Buy rating on CAT stock.

The Average True Range (ATR) for Caterpillar Inc. is set at 6.08, with the Price to Sales ratio for CAT stock in the period of the last 12 months amounting to 2.30. The Price to Book ratio for the last quarter was 7.20, with the Price to Cash per share for the same quarter was set at 12.40. Price to Free Cash Flow for CAT in the course of the last twelve months was 59.19 with Quick ratio for the last quarter at 0.90.

Trading performance analysis for CAT stock

Caterpillar Inc. [CAT] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.62. With this latest performance, CAT shares gained by 11.40% in over the last four-week period, additionally plugging by 12.38% over the last 6 months – not to mention a drop of -2.07% 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 66.84, with the RSI for the last a single of trading hit 75.46, and the three-weeks RSI is set at 62.07 for Caterpillar Inc. [CAT]. The present Moving Average for the last 50 days of trading for this stock 216.02, while it was recorded at 224.69 for the last single week of trading, and 207.63 for the last 200 days.

Caterpillar Inc. [CAT]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Caterpillar Inc. [CAT] shares currently have an operating margin of +13.67 and a Gross Margin at +28.06. Caterpillar Inc.’s Net Margin is presently recorded at +12.73.

Return on Equity for this stock inclined to 40.79, with Return on Assets sitting at 8.06.

Caterpillar Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 1.40.

Caterpillar Inc. [CAT]: An earnings per share (EPS) analysis

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 24.72%.

An analysis of insider ownership at Caterpillar Inc. [CAT]

There are presently around $84,126 million, or 70.90% of CAT stock, in the hands of institutional investors. The top three institutional holders of CAT stocks are: VANGUARD GROUP INC with ownership of 48,223,787, which is approximately 1.396% of the company’s market cap and around 0.10% of the total institutional ownership; STATE STREET CORP, holding 40,808,438 shares of the stock with an approximate value of $9.27 billion in CAT stocks shares; and BLACKROCK INC., currently with $8.52 billion in CAT stock with ownership of nearly 2.719% of the company’s market capitalization.

Positions in Caterpillar Inc. stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 1,122 institutional holders increased their position in Caterpillar Inc. [NYSE:CAT] by around 28,960,455 shares. Additionally, 872 investors decreased positions by around 20,510,889 shares, while 318 investors held positions by with 320,966,331 shares. The mentioned changes placed institutional holdings at 370,437,675 shares, according to the latest SEC report filing. CAT stock had 170 new institutional investments in for a total of 5,658,222 shares, while 139 institutional investors sold positions of 2,116,309 shares during the same period.

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