Market Runner: What’s Ahead for Caterpillar Inc. After Reaching 52-Week High?

Market Runner: What's Ahead for Caterpillar Inc. After Reaching 52 Week High?

The stock of Caterpillar Inc. (NYSE:CAT) hit a new 52-week high and has $103.40 target or 8.00% above today’s $95.74 share price. The 6 months bullish chart indicates low risk for the $56.45 billion company. The 1-year high was reported on Nov, 23 by Barchart.com. If the $103.40 price target is reached, the company will be worth $4.52 billion more.
The 52-week high event is an important milestone for every stock because it shows very positive momentum and is time when buyers come in. During such notable technical setup, fundamental investors usually stay away and are careful shorting or selling the stock. About 3.70M shares traded hands. Caterpillar Inc. (NYSE:CAT) has risen 19.02% since April 21, 2016 and is uptrending. It has outperformed by 13.69% the S&P500.

Analysts await Caterpillar Inc. (NYSE:CAT) to report earnings on January, 26. They expect $0.66 earnings per share, down 10.81% or $0.08 from last year’s $0.74 per share. CAT’s profit will be $389.15 million for 36.27 P/E if the $0.66 EPS becomes a reality. After $0.85 actual earnings per share reported by Caterpillar Inc. for the previous quarter, Wall Street now forecasts -22.35% negative EPS growth.

Caterpillar Inc. (NYSE:CAT) Ratings Coverage

Out of 22 analysts covering Caterpillar Inc. (NYSE:CAT), 7 rate it a “Buy”, 3 “Sell”, while 12 “Hold”. This means 32% are positive. Caterpillar Inc. has been the topic of 43 analyst reports since July 27, 2015 according to StockzIntelligence Inc. As per Thursday, September 24, the company rating was initiated by Axiom Capital. Goldman Sachs upgraded the stock to “Buy” rating in Tuesday, October 11 report. As per Thursday, December 17, the company rating was downgraded by Deutsche Bank. S&P Research downgraded the stock to “Sell” rating in Friday, October 23 report. On Monday, September 19 the stock rating was downgraded by OTR Global to “Mixed”. The stock has “Outperform” rating given by Credit Suisse on Monday, April 4. The rating was upgraded by Goldman Sachs to “Neutral” on Monday, April 25. The firm has “Neutral” rating given on Wednesday, July 27 by Citigroup. Vertical Research upgraded Caterpillar Inc. (NYSE:CAT) on Friday, April 15 to “Buy” rating. On Friday, September 25 the stock rating was initiated by Barclays Capital with “Equal Weight”.

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.”

Insitutional Activity: The institutional sentiment increased to 0.98 in Q2 2016. Its up 0.13, from 0.85 in 2016Q1. The ratio is positive, as 76 funds sold all Caterpillar Inc. shares owned while 363 reduced positions. 40 funds bought stakes while 331 increased positions. They now own 396.23 million shares or 3.43% less from 410.29 million shares in 2016Q1.
Massachusetts Financial Svcs Ma reported 2.45M shares or 0.09% of all its holdings. Quest Invest Management Or has 0.08% invested in the company for 7,438 shares. Hennessy Incorporated last reported 0.33% of its portfolio in the stock. Great Lakes Limited Liability Company last reported 593,835 shares in the company. Fincl Architects has invested 0.03% of its portfolio in Caterpillar Inc. (NYSE:CAT). Moreover, Checchi Capital Advisers Lc has 0.04% invested in Caterpillar Inc. (NYSE:CAT) for 4,597 shares. Meyer Handelman last reported 247,916 shares in the company. Brick & Kyle, a Pennsylvania-based fund reported 100 shares. Tnb Fincl has 2,869 shares for 0.06% of their US portfolio. Dekabank Deutsche Girozentrale owns 117,844 shares or 0.1% of their US portfolio. Ameritas Invest accumulated 13,468 shares or 0.07% of the stock. Busey Trust has invested 0.18% of its portfolio in Caterpillar Inc. (NYSE:CAT). Metropolitan Life Insur Company Ny reported 303,683 shares or 0.17% of all its holdings. Lombard Odier Asset (Switzerland) last reported 0.03% of its portfolio in the stock. Credit Suisse Ag has 0.14% invested in the company for 1.66M shares.

Insider Transactions: Since May 31, 2016, the stock had 1 buy, and 5 selling transactions for $707,634 net activity. $235,036 worth of Caterpillar Inc. (NYSE:CAT) shares were sold by Halverson Bradley M. On Thursday, November 10 DICKINSON DANIEL M sold $88,844 worth of the stock or 950 shares. 1,930 Caterpillar Inc. (NYSE:CAT) shares with value of $159,708 were bought by Muilenburg Dennis A. Copeland Jananne A. sold $58,563 worth of stock or 706 shares.

More notable recent Caterpillar Inc. (NYSE:CAT) news were published by: Fool.com which released: “A Look at Caterpillar, Inc.’s Retail Sales Over the Years Is Depressing” on November 22, 2016, also Fool.com with their article: “Better Buy: Caterpillar Inc. vs. United Technologies” published on November 15, 2016, Wsj.com published: “Caterpillar Earnings Preview: What to Watch” on October 24, 2016. More interesting news about Caterpillar Inc. (NYSE:CAT) were released by: Fool.com and their article: “1 Billionaire is Shorting Caterpillar Inc.’s Stock: Should You?” published on November 04, 2016 as well as Fool.com‘s news article titled: “What the Upcoming CEO Shuffle Means for Caterpillar Inc.” with publication date: November 01, 2016.

CAT Company Profile

Caterpillar Inc. (Caterpillar), incorporated on March 12, 1986, is a maker of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. The Firm operates through its three product divisions: Resource Industries, Construction Industries, and Energy & Transportation. The Firm also provides financing and related services through its Financial Products segment. The Firm offers its products under the brand names Caterpillar, CAT, design versions of CAT and Caterpillar, Electro-Motive, FG Wilson, MaK, MWM, Perkins, Progress Rail, SEM and Solar Turbines. The Firm operates parts distribution centers at various locations, including Morton, Illinois; Mossville, Illinois; Arvin, California; Denver, Colorado; Miami, Florida; Atlanta, Georgia; St. Paul, Minnesota; Southaven, Mississippi; Clayton, Ohio; Houston, Pennsylvania; York, Pennsylvania; Waco, Texas; Van Alstyne, Texas; Duffield, Virginia; Spokane, Washington; Melbourne, Australia; Stapylton, Australia; Queensland, Australia; Grimbergen, Belgium; Piracicaba, Brazil; Shanghai, China; Dortmund, Germany; Lunen, Germany; San Luis Potosi, Mexico; Singapore, Republic of Singapore; Moscow, Russia; Johannesburg, South Africa, and Dubai, United Arab Emirates.

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