Caterpillar Inc. (NYSE:CAT) Receives Average Rating of “Moderate Buy” from Analysts

Shares of Caterpillar Inc. (NYSE:CAT) have been given a consensus recommendation of “Moderate Buy” by the twenty-six analysts that are covering the stock, Marketbeat Ratings reports. Nine equities research analysts have rated the stock with a hold recommendation, sixteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price target among brokers that have covered the stock in the last year is $935.0909.

A number of analysts have recently weighed in on CAT shares. Zacks Research raised Caterpillar from a “hold” rating to a “strong-buy” rating in a research report on Monday, June 8th. Wall Street Zen raised Caterpillar from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. DA Davidson raised their price objective on Caterpillar from $650.00 to $845.00 and gave the stock a “neutral” rating in a research report on Monday, May 4th. Truist Financial set a $1,043.00 price objective on Caterpillar in a research report on Friday, May 1st. Finally, Argus raised their price objective on Caterpillar from $820.00 to $990.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th.

Caterpillar Stock Up 3.5%

Shares of NYSE CAT opened at $1,020.36 on Thursday. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. The stock has a market capitalization of $469.97 billion, a PE ratio of 50.79, a price-to-earnings-growth ratio of 1.95 and a beta of 1.59. The stock’s fifty day simple moving average is $879.72 and its two-hundred day simple moving average is $744.67. Caterpillar has a 12-month low of $357.73 and a 12-month high of $1,023.29.

Caterpillar (NYSE:CAT) last announced its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.65 by $0.89. The business had revenue of $17.42 billion for the quarter, compared to analysts’ expectations of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The business’s revenue for the quarter was up 22.2% on a year-over-year basis. During the same quarter last year, the firm earned $4.25 EPS. As a group, analysts expect that Caterpillar will post 24.64 EPS for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be given a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date of this dividend is Monday, July 20th. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s payout ratio is 30.06%.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is benefiting from news that Chevron will supply power to a major Microsoft data center using natural gas turbines from Caterpillar and GE Vernova, highlighting CAT’s role in the booming AI infrastructure and power-generation market.
• Positive Sentiment: The stock has extended its winning streak for seven consecutive sessions, with traders pointing to a record run and strong technical momentum as a reason for continued buying.
• Positive Sentiment: Analysts and market commentary are increasingly bullish on Caterpillar’s long-term outlook, citing its high-quality business profile, strong earnings backdrop, and recent dividend increase of 8% to $1.63 per share.
• Neutral Sentiment: Several recent articles simply note that Caterpillar is drawing heavy investor attention and screening well in “top stock” and “high quality” lists, which supports interest but does not add a new fundamental catalyst.
• Neutral Sentiment: Market commentary also notes that Caterpillar’s share price has climbed above the $1,000 level, underscoring momentum, but this is more a milestone than a new driver.
• Negative Sentiment: One valuation-focused note says Caterpillar may be overvalued after its recent rally, which could temper enthusiasm if investors start worrying about the stock’s stretched multiple.

Insider Transactions at Caterpillar

In related news, insider Denise C. Johnson sold 12,605 shares of the firm’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the transaction, the insider owned 49,825 shares in the company, valued at $45,236,615.75. This trade represents a 20.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO William E. Schaupp sold 360 shares of the firm’s stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total value of $326,160.00. Following the completion of the transaction, the chief accounting officer owned 530 shares of the company’s stock, valued at $480,180. This trade represents a 40.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Caterpillar

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Lam Group Inc. purchased a new position in Caterpillar in the 1st quarter worth $26,000. Torren Management LLC purchased a new position in Caterpillar in the 4th quarter worth $27,000. Frazier Financial Advisors LLC raised its stake in Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 33 shares during the last quarter. IFS Advisors LLC purchased a new position in Caterpillar in the 4th quarter worth $31,000. Finally, Rialto Wealth Management LLC raised its stake in shares of Caterpillar by 47.4% during the 4th quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock valued at $32,000 after buying an additional 18 shares during the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off?highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.