Caterpillar Inc. (NYSE: CAT)’s stock price has increased by 0.07 compared to its previous closing price of 347.63. However, the company has seen a 0.61% increase in its stock price over the last five trading sessions. marketbeat.com reported 2024-07-22 that It’s time to go on the defensive; at least, that’s what the savvy ones on Wall Street would have everyone else do, and while they’re not always right, this time, there might be some sense behind the suggestion. When BlackRock Inc. NYSE: BLK released its earnings results for the second quarter of 2024, it revealed to investors that its clients were being advised to go into fixed-income and exchange-traded funds (ETFs), and here’s why.
Is It Worth Investing in Caterpillar Inc. (NYSE: CAT) Right Now?
The price-to-earnings ratio for Caterpillar Inc. (NYSE: CAT) is 15.71x, which is above its average ratio. Moreover, the 36-month beta value for CAT is 1.11. Analysts have varying opinions on the stock, with 7 analysts rating it as a “buy,” 4 as “overweight,” 11 as “hold,” and 2 as “sell.”
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The public float for CAT is 488.11M and currently, short sellers hold a 2.13% of that float. On July 23, 2024, CAT’s average trading volume was 3.08M shares.
CAT’s Market Performance
CAT’s stock has seen a 0.61% increase for the week, with a 5.69% rise in the past month and a -1.91% fall in the past quarter. The volatility ratio for the week is 3.10%, and the volatility levels for the past 30 days are at 2.09% for Caterpillar Inc. The simple moving average for the past 20 days is 3.74% for CAT’s stock, with a 11.95% simple moving average for the past 200 days.
Analysts’ Opinion of CAT
Citigroup, on the other hand, stated in their research note that they expect to see CAT reach a price target of $380. The rating they have provided for CAT stocks is “Buy” according to the report published on June 26th, 2024.
TD Cowen gave a rating of “Buy” to CAT, setting the target price at $340 in the report published on April 26th of the current year.
CAT Trading at 2.71% from the 50-Day Moving Average
After a stumble in the market that brought CAT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -8.94% of loss for the given period.
Volatility was left at 2.09%, however, over the last 30 days, the volatility rate increased by 3.10%, as shares surge +6.11% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +0.98% upper at present.
During the last 5 trading sessions, CAT rose by +0.61%, which changed the moving average for the period of 200-days by +29.33% in comparison to the 20-day moving average, which settled at $336.32. In addition, Caterpillar Inc. saw 17.65% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CAT starting from Johnson Cheryl H, who sale 1,508 shares at the price of $350.00 back on Jul 16 ’24. After this action, Johnson Cheryl H now owns 18,515 shares of Caterpillar Inc., valued at $527,800 using the latest closing price.
Johnson Cheryl H, the Chief Human Resources Officer of Caterpillar Inc., sale 1,508 shares at $340.00 during a trade that took place back on May 30 ’24, which means that Johnson Cheryl H is holding 20,023 shares at $512,720 based on the most recent closing price.
Stock Fundamentals for CAT
Current profitability levels for the company are sitting at:
- 0.21 for the present operating margin
- 0.35 for the gross margin
The net margin for Caterpillar Inc. stands at 0.17. The total capital return value is set at 0.27. Equity return is now at value 62.86, with 13.44 for asset returns.
Based on Caterpillar Inc. (CAT), the company’s capital structure generated 0.68 points at debt to capital in total, while cash flow to debt ratio is standing at 0.35. The debt to equity ratio resting at 2.15. The interest coverage ratio of the stock is 26.19.
Currently, EBITDA for the company is 15.97 billion with net debt to EBITDA at 2.03. When we switch over and look at the enterprise to sales, we see a ratio of 3.03. The receivables turnover for the company is 3.54for trailing twelve months and the total asset turnover is 0.8. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.35.
Conclusion
To wrap up, the performance of Caterpillar Inc. (CAT) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
