Zacks Research Brokers Decrease Earnings Estimates for Caterpillar Inc. (NYSE:CAT)

Caterpillar Inc. (NYSE:CAT) – Investment analysts at Zacks Research reduced their Q4 2024 earnings estimates for Caterpillar in a research report issued to clients and investors on Monday, September 2nd. Zacks Research analyst M. Das now expects that the industrial products company will post earnings per share of $4.82 for the quarter, down from their prior estimate of $4.87. The consensus estimate for Caterpillar’s current full-year earnings is $21.87 per share. Zacks Research also issued estimates for Caterpillar’s Q2 2025 earnings at $5.56 EPS, Q3 2025 earnings at $5.20 EPS, Q4 2025 earnings at $5.01 EPS, FY2025 earnings at $21.26 EPS and Q2 2026 earnings at $5.91 EPS.

Other research analysts have also recently issued reports about the company. Barclays lifted their price objective on Caterpillar from $315.00 to $335.00 and gave the company an “equal weight” rating in a research report on Wednesday, August 7th. StockNews.com lowered shares of Caterpillar from a “buy” rating to a “hold” rating in a research report on Thursday. Evercore ISI decreased their price objective on shares of Caterpillar from $338.00 to $321.00 and set an “in-line” rating on the stock in a research report on Monday, August 19th. Raymond James initiated coverage on shares of Caterpillar in a report on Friday, June 28th. They issued a “market perform” rating for the company. Finally, Bank of America decreased their price target on Caterpillar from $385.00 to $376.00 and set a “buy” rating on the stock in a report on Wednesday, August 7th. Two analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have given a buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $336.31.

Caterpillar Stock Performance

NYSE:CAT opened at $333.50 on Wednesday. The company has a debt-to-equity ratio of 1.39, a quick ratio of 0.78 and a current ratio of 1.28. The stock has a 50-day simple moving average of $339.94 and a two-hundred day simple moving average of $343.18. The firm has a market capitalization of $163.10 billion, a PE ratio of 15.06, a P/E/G ratio of 1.66 and a beta of 1.12. Caterpillar has a 52-week low of $223.76 and a 52-week high of $382.01.

Caterpillar (NYSE:CAT) last issued its quarterly earnings results on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share for the quarter, topping the consensus estimate of $5.53 by $0.46. The business had revenue of $16.69 billion for the quarter, compared to analysts’ expectations of $16.91 billion. Caterpillar had a net margin of 16.58% and a return on equity of 59.88%. The company’s revenue was down 3.6% compared to the same quarter last year. During the same quarter last year, the company posted $5.55 EPS.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Acadian Asset Management LLC increased its stake in Caterpillar by 17.2% in the first quarter. Acadian Asset Management LLC now owns 9,037 shares of the industrial products company’s stock worth $3,308,000 after purchasing an additional 1,327 shares during the period. Catalyst Financial Partners LLC lifted its holdings in Caterpillar by 1.5% during the 4th 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 stake in Caterpillar in the 1st quarter valued at about $926,000. Natixis Advisors LLC grew its stake in Caterpillar by 3.5% in the 2nd quarter. Natixis Advisors LLC now owns 278,259 shares of the industrial products company’s stock worth $92,688,000 after acquiring an additional 9,321 shares in the last quarter. Finally, Aigen Investment Management LP purchased a new position in shares of Caterpillar during the fourth quarter worth approximately $222,000. Institutional investors own 70.98% of the company’s stock.

Insider Transactions at Caterpillar

In related news, Director Gerald Johnson acquired 100 shares of the firm’s stock in a transaction on Wednesday, September 4th. The shares were acquired at an average cost of $338.59 per share, for a total transaction of $33,859.00. Following the completion of the transaction, the director now directly owns 2,842 shares in the company, valued at approximately $962,272.78. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In related news, insider Anthony D. Fassino sold 3,185 shares of Caterpillar stock in a transaction dated Friday, August 30th. The shares were sold at an average price of $351.36, for a total transaction of $1,119,081.60. Following the completion of the transaction, the insider now directly owns 33,442 shares of the company’s stock, valued at approximately $11,750,181.12. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Gerald Johnson acquired 100 shares of Caterpillar stock in a transaction that occurred on Wednesday, September 4th. The stock was purchased at an average cost of $338.59 per share, for a total transaction of $33,859.00. Following the completion of the transaction, the director now directly owns 2,842 shares in the company, valued at $962,272.78. The disclosure for this purchase can be found here. Insiders have sold a total of 7,668 shares of company stock worth $2,665,760 in the last three months. Insiders own 0.33% of the company’s stock.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, August 20th. Shareholders of record on Monday, July 22nd were paid a $1.41 dividend. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 dividend on an annualized basis and a dividend yield of 1.69%. The ex-dividend date of this dividend was Monday, July 22nd. Caterpillar’s dividend payout ratio (DPR) is presently 25.46%.

Caterpillar declared that its Board of Directors has initiated a stock repurchase program on Wednesday, June 12th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the industrial products company to buy up to 12.7% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its shares are undervalued.

Caterpillar Company Profile

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.