While Caterpillar Inc has overperformed by 1.84%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, CAT rose by 13.71%, with highs and lows ranging from $418.50 to $307.05, whereas the simple moving average jumped by 1.11% in the last 200 days.
On February 03, 2025, UBS Upgraded Caterpillar Inc (NYSE: CAT) to Neutral. A report published by Evercore ISI on January 13, 2025, Upgraded its rating to ‘In-line’ for CAT. Evercore ISI also Downgraded CAT shares as ‘Underperform’, setting a target price of $365 on the company’s shares in a report dated November 13, 2024. Morgan Stanley October 14, 2024d the rating to Underweight on October 14, 2024, and set its price target from $349 to $332. Raymond James initiated its ‘Mkt Perform’ rating for CAT, as published in its report on June 28, 2024. Citigroup’s report from June 26, 2024 suggests a price prediction of $380 for CAT shares, giving the stock a ‘Buy’ rating. TD Cowen also rated the stock as ‘Buy’.
Analysis of Caterpillar Inc (CAT)
Investors in Caterpillar Inc will get a return regardless of how the company performs over the next quarter since the company’s dividend stands at $5.53 per share. Further, the quarter-over-quarter decrease in sales is -5.01%, showing a negative trend in the upcoming months.
One of the most important indicators of Caterpillar Inc’s future performance is equity, which can be evaluated using several well-rounded types of analysis and research techniques. The goal here is to ensure that your current return on equity of 55.36% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 0.90, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
For any stock, average volume can also provide valuable insight into volatility, and CAT is recording 2.16M average volume. On a monthly basis, the volatility of the stock is set at 2.06%, whereas on a weekly basis, it is put at 2.03%, with a loss of -2.54% over the past seven days. Furthermore, long-term investors anticipate a median target price of $388.77, showing growth from the present price of $365.45, which can serve as yet another indication of whether CAT is worth investing in or should be passed over.
How Do You Analyze Caterpillar Inc Shares?
The Farm & Heavy Construction Machinery market is dominated by Caterpillar Inc (CAT) based in the USA. When comparing Caterpillar Inc shares with other companies under Industrials, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 16.56, there is a growth in quarterly earnings of 9.51%.
Along with the fundamentals, it is also important to consider how many employees own shares of the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 0.19%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 72.07% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
CAT shares are owned by institutional investors to the tune of 72.07% at present.
