Caterpillar Inc. [CAT] Stock trading around $196.96 per share: What’s Next?

Caterpillar Inc. [NYSE: CAT] gained 1.09% or 2.12 points to close at $196.96 with a heavy trading volume of 3543328 shares. The company report on October 13, 2022 that Jim Umpleby to Continue as Caterpillar Chairman & CEO.

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Caterpillar Inc. (NYSE: CAT) today announced that its Board of Directors has waived the policy requiring Caterpillar’s Chairman and CEO, Jim Umpleby, to retire at age 65. Umpleby has agreed to remain in his position beyond February 2023, when he turns 65.

“Waiving the mandatory retirement policy for Jim provides the Board greater flexibility with its CEO succession process,” said Debra Reed-Klages, presiding director, speaking on behalf of Caterpillar’s Board of Directors. “Jim has provided strong strategic and operating leadership for the company, and we look forward to his continued leadership of the Caterpillar team.”.

It opened the trading session at $198.30, the shares rose to $199.58 and dropped to $194.57, the range by which the price of stock traded the whole day. The daily chart for CAT points out that the company has recorded -7.95% loss over the past six months. However, it is still -22.64% lower than its most recent low trading price.

If we look at the average trading volume of 2.76M shares, CAT reached to a volume of 3543328 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 $206.08 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 3.00. 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.

Bernstein have made an estimate for Caterpillar Inc. shares, keeping their opinion on the stock as Mkt Perform, with their previous recommendation back on August 03, 2022. While these analysts kept the previous recommendation, Wells Fargo raised their target price to Equal Weight. The new note on the price target was released on March 11, 2022, representing the official price target for Caterpillar Inc. stock. Previously, the target price had yet another raise from $215 to $260, while Jefferies kept a Buy rating on CAT stock. On January 12, 2022, analysts increased their price target for CAT shares from 235 to 250.

The Average True Range (ATR) for Caterpillar Inc. is set at 5.92, with the Price to Sales ratio for CAT stock in the period of the last 12 months amounting to 1.83. The Price to Book ratio for the last quarter was 6.65, with the Price to Cash per share for the same quarter was set at 12.00. Price to Free Cash Flow for CAT in the course of the last twelve months was 48.26 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 6.81. With this latest performance, CAT shares gained by 21.25% in over the last four-week period, additionally sinking by -7.95% over the last 6 months – not to mention a drop of -1.34% 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 67.69, with the RSI for the last a single of trading hit 74.75, and the three-weeks RSI is set at 62.40 for Caterpillar Inc. [CAT]. The present Moving Average for the last 50 days of trading for this stock 182.48, while it was recorded at 190.77 for the last single week of trading, and 198.67 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 11.62%.

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

There are presently around $72,511 million, or 71.20% of CAT stock, in the hands of institutional investors. The top three institutional holders of CAT stocks are: VANGUARD GROUP INC with ownership of 48,577,185, which is approximately 0.733% of the company’s market cap and around 0.23% of the total institutional ownership; STATE STREET CORP, holding 39,778,442 shares of the stock with an approximate value of $7.83 billion in CAT stocks shares; and BLACKROCK INC., currently with $7.23 billion in CAT stock with ownership of nearly -2.133% 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 919 institutional holders increased their position in Caterpillar Inc. [NYSE:CAT] by around 17,904,982 shares. Additionally, 970 investors decreased positions by around 16,785,943 shares, while 342 investors held positions by with 333,460,617 shares. The mentioned changes placed institutional holdings at 368,151,542 shares, according to the latest SEC report filing. CAT stock had 113 new institutional investments in for a total of 1,967,396 shares, while 178 institutional investors sold positions of 2,172,139 shares during the same period.


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