Caterpillar Inc. (CAT) Performance and Fundamentals Dashboard tells a completely different story

Caterpillar Inc. (NYSE: CAT) stock fell -3.39% on Friday to $171.95 against a previous-day closing price of $177.99. With 4.04 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.78 million shares. During the session, the Farm & Heavy Construction Machinery company that operates in wider Industrials sector, reached to the highest price of $180.49 whereas the lowest price it dropped to was $171.88. The 52-week range on CAT shows that it touched its highest point at $237.90 and its lowest point at $167.08 during that stretch. It currently has a 1-year price target of $209.22. With its current market cap of 92.30 billion, CAT has annualized dividend of $4.80 while the current yield stands at 2.79%. Beta for the stock currently stands at 1.01.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CAT was down-trending over the past week, with a drop of -6.88%, but this was down by -10.33% over a month. Three-month performance dropped to -8.45% while six-month performance fell -22.79%. The stock lost -9.42% in the past year, while it has lost -16.83% so far this year. A look at the trailing 12-month EPS for CAT yields 12.43 with Next year EPS estimates of 13.86. For the next quarter, that number is 3.17. This implies an EPS growth rate of 121.20% for this year and 10.61% for next year. EPS is expected to grow by 11.82% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 153.50%.

Float and Shares Shorts:

At present, 531.00 million CAT shares are outstanding with a float of 521.24 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.75 million, which was 1.08% higher than short shares on Jun 14, 2022. In addition to Mr. D. James Umpleby III as the firm’s Chairman & CEO, Mr. Andrew R. J. Bonfield serves as its Chief Financial Officer.


Institutional Ownership:

Through their ownership of 71.22% of CAT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 36.49% of CAT, in contrast to 34.59% held by mutual funds. Shares owned by individuals account for 1.09%. As the largest shareholder in CAT with 8.77% of the stake, The Vanguard Group, Inc. holds 46,314,691 shares worth 46,314,691. A second-largest stockholder of CAT, SSgA Funds Management, Inc., holds 39,778,442 shares, controlling over 7.54% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in CAT, holding 27,120,533 shares or 5.14% stake. With a 2.99% stake in CAT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 15,790,791 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.26% of CAT stock, is the second-largest Mutual Fund holder. It holds 11,903,456 shares valued at 2.2 billion. American Funds Growth Fund of Ame holds 1.24% of the stake in CAT, owning 6,569,823 shares worth 1.21 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CAT since 28 analysts follow the stock currently. There are 12 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CAT analysts setting a high price target of $328.00 and a low target of $142.00, the average target price over the next 12 months is $215.26. Based on these targets, CAT could surge 90.75% to reach the target high and fall by -17.42% to reach the target low. Reaching the average price target will result in a growth of 25.19% from current levels.


EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CAT will report FY 2022 earnings on 01/26/2023. Analysts have provided yearly estimates in a range of $13.68 being high and $11.60 being low. For CAT, this leads to a yearly average estimate of $12.55. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Caterpillar Inc. surprised analysts by $0.17 when it reported $3.18 EPS against a consensus estimate of $3.01. The surprise factor in the prior quarter was $0.28. Based on analyst estimates, the high estimate for the next quarter is $3.66 and the low estimate is $2.79. The average estimate for the next quarter is thus $3.19.

Summary of Insider Activity:

Insiders traded CAT stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 289 shares were sold. The number of buy transactions has increased to 30 while that of sell transactions has risen to 27 over the past year. The total number of shares bought during that period was 207,326 while 183,837 shares were sold.

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