Founded in 1925, caterpillar Inc. is an American company that specializes in the manufacturing, designing, marketing and selling of machinery and financial products via a worldwide dealer network. The price of Caterpillar stocks today stands at $102.73, showing a 0.81% increase since yesterday. Looking at it from a macro perspective, the prices of cat stocks have risen steadily over the span of the last year from $80 to $102 per share. From an investment standpoint is largely regarded as a neutral stock, meaning it is relatively stable compared to the others in its class. An example of this being that analysts at JPMorgan Chase & Co. raised the price target on caterpillar stocks from $92 to $96 in a research note this Thursday. Similarly analysts at Robert W. Baird did the same form $94 to $97 on Wednesday. Fifteen research analysts have granted the stock a “hold” rating while six have given it a “buy” rating.
However, with the recently disclosed tax evasion scandal regarding CAT misallocating its sales to avoid taxes, Caterpillar Inc.’s stock prices might not be able to maintain this upward movement for very long. Already it seems as if investor interest has taken a hit. If this case does not go in the favor of CAT, they might end up having to pay hefty fines to the US government; money that everyone knows could be better spent elsewhere (for example infrastructure development). Needless to say Caterpillar’s current stock prices are in decline. It all depends on how well the top-tier management can navigate the company out of its current plight.