Shares of Caterpillar Inc. (CAT) have dropped -3.1% since the company’s last earnings report. Over the past 12 fiscal quarters, Caterpillar Inc. (NYSE:CAT) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. CAT last reported earnings on January 28, 2019 when it released Dec-18 results that receded expectations. The company raked in $2.55 per share, -82.61% change on the same period last year. That was worse than consensus for $2.99. Revenue for the recent quarter stood at $14.34 billion, up 11% on last year and below the $14.33 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $12.14 billion to $14.34 billion, which should be compared with $12.66 billion generated last year. EPS is seen in a range of $2.61 to $3.03, against the $2.34 reported a year ago.
CAT’s 50 day simple moving average (SMA 50) price is $128.66 and its 200-day simple moving average (SMA 200) price is $138.1. The company’s stock currently has a total float of 589.28M shares. Its weekly volatility is hovering around 1.85% and felt 2.41% volatility in price over a month. On the upside, the share price will test short term resistance at around $134.12. On a downside, the stock is likely to find some support, which begins at $132.26. The failure to get near-term support could push it to $131.43.
Separately, it has been reported that multiple insider activity took place at Caterpillar Inc. (CAT). Group President De Lange Bob acquired 1,080 shares for $11,310 in transaction occurred on 2018/10/26. After making this transaction, the Group President owns a direct stake of 124,826 shares, worth $1,505,361, as per the last closing price. On 2018/10/02 Johnson Denise C, Group President at CAT, dumped 35,051 shares at an average price of $154.18 per share. The selling total is valued at $1,538,902.
Director, Calhoun David L had invested in 5,000 shares for $44,579 through a trade on 2018/05/14. Following this activity, the insider holds 776,850 shares worth $5,933,465 as of recent close. Wall Street’s most bullish Caterpillar Inc. (NYSE:CAT) analysts are predicting the share price to blow past $189 per share during the next 12 months. The current median share price forecast by them is $154.4, suggesting that the stock could increase 16% in that time frame. The average price target of $151.71 calls for a nearly 13.98% increase in the stock price.
It had seen a positive analyst call from Standpoint Research, which upgraded the stock from Sell to Accumulate on December 26. Analysts at BofA/Merrill, shed their negative views on December 03 by lifting it fromNeutral to Buy. Brokerage firm Stifel, looks cautious as they stick to prior recommendation of Hold, in a call on October 29. However, they did change the target price from $168 to $142. Robert W. Baird analysts came out with bullish views on September 20 when the call was made. They think the stock is now Outperform compared to to their prior call for Neutral.
When looking at valuations, Caterpillar Inc. (CAT) has a pricey P/E of 13.23x as compared to industry average of 12.97x. Moreover, it trades for 10.03 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 4.97x price/book and 1.44x price/sales. Compared to others, Caterpillar Inc. is in a different league with regards to profitability, having net margins of 5.7%. To put some perspective around this, the industry’s average net margin is 7.45%. CAT’s ROE is 21%, which is also considerably better than the industry’s ROE of 13.31%. It’s also very liquid in the near term, with a current ratio of 1.5. The stock has a debt/capital of 2.26.
Caterpillar Inc. (NYSE:CAT) sank as low as $132.45 Wednesday before getting settled at $133.1. The 0.32 percent increase called for market cap to move at $78.65B. The price went up as high as $132.45 before retreating. Trading activity significantly weakened as the volume at ready counter decreased to 3,178,477 shares versus 5,459,080 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 5,111,420 shares. The stock is now 18.78% above against its bear-market low of $112.06 on October 29, 2018. It has retreated -23.67% since it’s 52-week high of $164.6 reached in February. Now the market price is down -12.6% on the year and up 4.75% YTD.