Noteworthy Price Action: What’s Ahead for Caterpillar Inc. After Reaching 52-Week High?

Noteworthy Price Action: 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 $101.86 target or 6.00% above today’s $96.09 share price. The 5 months bullish chart indicates low risk for the $57.13 billion company. The 1-year high was reported on Dec, 1 by Barchart.com. If the $101.86 price target is reached, the company will be worth $3.43 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 6.33M shares traded hands or 9.71% up from the average. Caterpillar Inc. (NYSE:CAT) has risen 22.91% since April 28, 2016 and is uptrending. It has outperformed by 16.98% the S&P500.

Analysts await Caterpillar Inc. (NYSE:CAT) to report earnings on January, 26. They expect $0.66 EPS, down 10.81% or $0.08 from last year’s $0.74 per share. CAT’s profit will be $392.37M for 36.39 P/E if the $0.66 EPS becomes a reality. After $0.85 actual EPS 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. S&P Research downgraded it to “Sell” rating and $64 target price in Friday, October 23 report. The firm earned “Hold” rating on Friday, March 18 by Jefferies. The stock of Caterpillar Inc. (NYSE:CAT) has “Buy” rating given on Tuesday, October 11 by Goldman Sachs. Bank of America maintained the stock with “Neutral” rating in Friday, September 25 report. The stock has “Hold” rating given by Deutsche Bank on Thursday, December 17. The stock of Caterpillar Inc. (NYSE:CAT) has “Underperform” rating given on Friday, September 25 by Macquarie Research. The stock of Caterpillar Inc. (NYSE:CAT) has “Neutral” rating given on Monday, April 25 by Goldman Sachs. On Friday, September 25 the stock rating was maintained by RBC Capital Markets with “Sector Perform”. The rating was maintained by Credit Suisse with “Outperform” on Monday, April 4. The firm has “Market Perform” rating given on Friday, September 25 by William Blair.

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 improved, 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.
Bryn Mawr Trust accumulated 0.07% or 13,928 shares. Raymond James Associates last reported 613,624 shares in the company. The Pennsylvania-based Peoples Corp has invested 0.11% in Caterpillar Inc. (NYSE:CAT). Stearns Financial Svcs Group reported 3,394 shares or 0.07% of all its holdings. Lenox Wealth last reported 0.02% of its portfolio in the stock. Adams Asset Advsrs Lc holds 1.07% or 82,448 shares in its portfolio. The Texas-based Bancorporation has invested 0% in Caterpillar Inc. (NYSE:CAT). Massachusetts Ser Ma owns 2.45M shares or 0.09% of their US portfolio. The Massachusetts-based Factory Mutual Insurance has invested 0.12% in Caterpillar Inc. (NYSE:CAT). Us Bancshares De holds 0.16% of its portfolio in Caterpillar Inc. (NYSE:CAT) for 545,508 shares. Moreover, Pggm Invs has 0.31% invested in Caterpillar Inc. (NYSE:CAT) for 806,656 shares. Moreover, Appleton Prns Inc Ma has 0.04% invested in Caterpillar Inc. (NYSE:CAT) for 2,645 shares. Louisiana State Employees Retirement Systems has 38,300 shares for 0.15% of their US portfolio. Westwood Holdings Gp accumulated 17,173 shares or 0.01% of the stock. Anchor Capital Advsr accumulated 0.06% or 29,880 shares.

Insider Transactions: Since July 28, 2016, the stock had 1 insider purchase, and 4 selling transactions for $665,973 net activity. The insider DICKINSON DANIEL M sold 950 shares worth $88,844. Copeland Jananne A. sold $443,238 worth of stock or 4,859 shares. Muilenburg Dennis A also bought $159,708 worth of Caterpillar Inc. (NYSE:CAT) shares. Shares for $235,036 were sold by Halverson Bradley M.

More notable recent Caterpillar Inc. (NYSE:CAT) news were published by: Reuters.com which released: “Caterpillar says Wall St. ‘too optimistic’ on 2017 profit estimate” on December 01, 2016, also Investorplace.com with their article: “Here’s What’s Driving Caterpillar Inc. Stock Higher (CAT)” published on November 28, 2016, Fool.com published: “A Look at Caterpillar, Inc.’s Retail Sales Over the Years Is Depressing” on November 22, 2016. More interesting news about Caterpillar Inc. (NYSE:CAT) were released by: Fool.com and their article: “Better Buy: Caterpillar Inc. vs. United Technologies” published on November 15, 2016 as well as Seekingalpha.com‘s news article titled: “Caterpillar: Trump’s Infrastructure Spending Plan” with publication date: November 30, 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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