Morgan Stanley has recently reduced Caterpillar Inc. (CAT) stock rating, as announced on October 14, 2024, according to Finviz. Earlier, on June 28, 2024, Raymond James had initiated the stock to Mkt Perform. Citigroup also initiated Buy rating with a price target of $380. Additionally, TD Cowen reiterated Buy rating on April 26, 2024, with a target price of $340. Stifel analysts, in their report published on April 26, 2024, also reduced Hold rating and set a price target of $293 for Caterpillar Inc.’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Caterpillar Inc. (CAT) Stock Trading Recap
On Tuesday, Caterpillar Inc. (CAT) stock saw a decline, ending the day at $388.46 which represents a decrease of $-2.02 or -0.52% from the prior close of $390.48. The stock opened at $389.73 and touched a low of $385.73 during the day, reaching a high of $391.29. The volume of shares traded was 1.50 million falling short of the average volume of 2.46 million.
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CAT Stock Performance and Moving Averages
In recent trading, Caterpillar Inc. (CAT) stock price has shown some volatility, fluctuating 0.12% over the last five trades and 4.66% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 6.94%, and it has gained 15.60% in the previous three months. Currently, CAT is trading at -1.03%, 6.26%, and 13.27% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, CAT, a Industrials sector stock, is trading -3.75% below its 52-week high but remains 73.61% above its 52-week low. The Average True Range (ATR) (14 days) of 7.87 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Caterpillar Inc.’s Profitability and Valuation Ratios
Caterpillar Inc.’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 21.06% and a profit margin of 16.58%, with a gross margin of 6.94%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Caterpillar Inc.’s market capitalization stands at $188.36 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 17.69, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 17.18. Additionally, the Price-to-Sales Ratio is 2.84, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 11, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.20% of Caterpillar Inc. (CAT)’s shares, while financial institutions hold 72.28%.
Notable insider trades include Fassino Anthony D., Group President at Caterpillar Inc. (CAT), who sold 3185 shares on Aug 30 ’24, at $351.36 each, totaling $1.12 million. On Aug 22 ’24, Johnson Cheryl H, Chief Human Resources Officer, sold 2975 shares for $342.48 each, amounting to $1.02 million. Additionally, on Jul 16 ’24, Johnson Cheryl H sold 1508 shares at $350 each, generating $0.53 million.
