Zacks Research Equities Analysts Reduce Earnings Estimates for Caterpillar Inc. (NYSE:CAT)

Caterpillar Inc. (NYSE:CAT) – Investment analysts at Zacks Research decreased their Q4 2024 earnings estimates for Caterpillar in a report issued on Monday, August 19th. Zacks Research analyst M. Das now expects that the industrial products company will earn $4.87 per share for the quarter, down from their prior estimate of $5.02. The consensus estimate for Caterpillar’s current full-year earnings is $21.57 per share. Zacks Research also issued estimates for Caterpillar’s Q2 2025 earnings at $5.51 EPS, Q3 2025 earnings at $5.39 EPS, Q4 2025 earnings at $5.23 EPS and FY2025 earnings at $21.71 EPS.

A number of other brokerages also recently issued reports on CAT. Evercore ISI lowered their price target on Caterpillar from $338.00 to $321.00 and set an “in-line” rating for the company in a report on Monday. Stifel Nicolaus downgraded Caterpillar from a “buy” rating to a “hold” rating and upped their price target for the company from $293.00 to $350.00 in a report on Friday, April 26th. Truist Financial reaffirmed a “buy” rating and issued a $399.00 price target (up from $390.00) on shares of Caterpillar in a report on Wednesday, August 7th. HSBC upped their price target on Caterpillar from $330.00 to $360.00 and gave the company a “hold” rating in a report on Tuesday, April 30th. Finally, TD Cowen upped their price target on Caterpillar from $338.00 to $340.00 and gave the company a “buy” rating in a report on Friday, April 26th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and eight have issued a buy rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $336.31.

Caterpillar Stock Down 0.2 %

CAT stock opened at $342.36 on Wednesday. The company’s 50 day moving average price is $335.72 and its 200 day moving average price is $341.31. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.83 and a current ratio of 1.35. The firm has a market capitalization of $167.43 billion, a price-to-earnings ratio of 15.46, a PEG ratio of 1.72 and a beta of 1.12. Caterpillar has a fifty-two week low of $223.76 and a fifty-two week high of $382.01.

Caterpillar (NYSE:CAT) last released its earnings results on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share for the quarter, topping analysts’ consensus estimates of $5.53 by $0.46. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. The firm had revenue of $16.69 billion for the quarter, compared to analyst estimates of $16.91 billion. During the same period in the prior year, the firm earned $5.55 earnings per share. The business’s quarterly revenue was down 3.6% compared to the same quarter last year.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Axxcess Wealth Management LLC raised its position in Caterpillar by 20.0% in the fourth quarter. Axxcess Wealth Management LLC now owns 21,343 shares of the industrial products company’s stock worth $6,310,000 after acquiring an additional 3,558 shares in the last quarter. Acadian Asset Management LLC increased its position in shares of Caterpillar by 17.2% in the first quarter. Acadian Asset Management LLC now owns 9,037 shares of the industrial products company’s stock valued at $3,308,000 after buying an additional 1,327 shares in the last quarter. Catalyst Financial Partners LLC increased its position in shares of Caterpillar by 1.5% in the fourth quarter. Catalyst Financial Partners LLC now owns 4,295 shares of the industrial products company’s stock valued at $1,270,000 after buying an additional 63 shares in the last quarter. Diversify Advisory Services LLC purchased a new position in shares of Caterpillar in the first quarter valued at $926,000. Finally, Aigen Investment Management LP purchased a new position in shares of Caterpillar in the fourth quarter valued at $222,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Insider Buying and Selling

In other Caterpillar news, insider Cheryl H. Johnson sold 1,508 shares of the stock in a transaction on Tuesday, July 16th. The stock was sold at an average price of $350.00, for a total value of $527,800.00. Following the completion of the transaction, the insider now owns 18,515 shares in the company, valued at $6,480,250. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 0.33% of the company’s stock.

Caterpillar declared that its Board of Directors has authorized a share repurchase plan on Wednesday, June 12th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the industrial products company to reacquire up to 12.7% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 20th. Investors of record on Monday, July 22nd were issued a dividend of $1.41 per share. The ex-dividend date was Monday, July 22nd. This is an increase from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 annualized dividend and a dividend yield of 1.65%. Caterpillar’s dividend payout ratio (DPR) is currently 25.46%.

About Caterpillar

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.