Caterpillar (NYSE:CAT) Receives a Downgrade
In a recent report released on 17 December, equity analysts at Deutsche Bank’s equity division cut shares of Caterpillar (NYSE:CAT) stock from their previous “Buy” rating to a “Hold”. They now have a $60.0 Estimated Target Price on CAT or a -11.40% downside.
From a total of 21 analysts covering Caterpillar Inc. (NYSE:CAT) stock, 4 rate it a ”Buy”, 3 a “Sell”, and 19 a ”Hold”. This means that 15% of the ratings are positive. The highest target price is $86 while the lowest target price is $58. The mean of all analyst targets is $68.57 with a 3.78% above today’s ($65.9) stock price. Caterpillar Inc. was the topic of 24 analyst reports since July 27, 2015 according to the firm StockzIntelligence Inc. Goldman Sachs maintained shares on December 7 with “Neutral” rating. Macquarie Research maintained shares with “Underperform” rating and $58 target share price in a report from a September 25. Deutsche Bank maintained CAT stock in a recent report from September 28 with “Buy” rating. BMO Capital Markets maintained the rating on September 25. BMO Capital Markets has a “Market Perform” rating and a $68 price target on shares. Finally, Bank of America maintained the stock with “Neutral” rating in a report issued on a September 25.
Approximately 3.06 million shares of stock traded hands. Caterpillar Inc. (NYSE:CAT) has declined 23.69% since May 14, 2015 and is downtrending. It has underperformed by 21.42% the S&P500.
The overall sentiment of institutions has decreased to 0.82 in Q2 2015. Its down 0.06, from 0.88 in 2015Q2. The ratio dropped, as 142 institutions have sold all the shares of Caterpillar Inc. that they owned while 397 funds have taken shares off the table. 74 funds have purchased shares for the first time while 367 added to their positions. These institutions now hold 403.94 million shares or 3.35% more than the 390.85 million shares they owned in 2015Q2.
The Fund San Francisco Sentry Investment Group (Ca) currently is holding shares equating to 12.23% of its total portfolio in Caterpillar Inc. representing a total of 265,623 shares. Another fund,Bill & Melinda Gates Foundation Trust, is holding a total of 11.26 million shares equating to 4.27% of their holdings. Additionally, Community Bank Of Raymore has a 93,899 share stake in Caterpillar Inc. which represents 3.52% of their total portfolio. The Fund, Stewart West Indies Trading Co. Ltd, based out of Colorado, has also built up a stake in the stock, which represents a total of 3.43% of their total portfolio. Finally Westchester Capital Management Inc., a fund which is based in the state of Nebraska reported a total holdings of 95,064 shares.
Insider activity is a very important aspect to track on any stock. Going back to May 12, 2015, shareholders of Caterpillar Inc. have witnessed 0 insider purchases, and a total of 1 sale equating to a net activity of approximately $915,064 . Halverson Bradley M sold 11,867 shares worth approximately $915,064. Dickinson Daniel M sold 807 shares worth approximately $70,286.
Caterpillar Inc. is a manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The company has a market cap of $39.29 billion. The Firm principally operates through its three product divisions: Resource Industries, Construction Industries, and Energy & Transportation. It has 13.67 P/E ratio. The Firm also provides financing and related services through its Financial Products segment.
According to Zacks Investment Research, “Caterpillar Inc is the world’s largest manufacturer of construction and mining equipment, diesel and natural gas engines and industrial gas turbines. The company is one of only a handful of U.S. companies that leads its industry while competing globally from a principally domestic manufacturing base. The company records more than half of its sales to overseas customers. Their products are used in the construction, road building, mining, forestry, energy, transportation and material-handling industries.”