Caterpillar Inc. (NYSE:CAT) Given Consensus Rating of “Moderate Buy” by Analysts

Caterpillar Inc. (NYSE:CAT) has earned an average recommendation of “Moderate Buy” from the twenty-six brokerages that are presently covering the stock, Marketbeat reports. Nine analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company. The average 12 month target price among analysts that have covered the stock in the last year is $935.0909.

A number of equities analysts have recently issued reports on CAT shares. Barclays increased their price target on shares of Caterpillar from $700.00 to $800.00 and gave the company an “equal weight” rating in a report on Friday, May 1st. Williams Trading set a $825.00 target price on shares of Caterpillar in a report on Tuesday, March 10th. Wall Street Zen upgraded shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Citigroup raised their target price on shares of Caterpillar from $905.00 to $1,020.00 and gave the company a “buy” rating in a report on Friday, May 1st. Finally, Bank of America raised their target price on shares of Caterpillar from $930.00 to $989.00 and gave the company a “buy” rating in a report on Friday, May 1st.

Caterpillar Stock Up 1.0%

Shares of NYSE:CAT opened at $955.17 on Thursday. The stock has a market cap of $439.94 billion, a P/E ratio of 47.54, a P/E/G ratio of 1.87 and a beta of 1.59. The firm has a fifty day moving average price of $865.45 and a 200 day moving average price of $735.73. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. Caterpillar has a 1-year low of $356.96 and a 1-year high of $975.64.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping the consensus estimate of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The company had revenue of $17.42 billion during the quarter, compared to analysts’ expectations of $16.53 billion. During the same quarter last year, the business earned $4.25 EPS. The business’s revenue was up 22.2% on a year-over-year basis. Sell-side analysts predict that Caterpillar will post 24.62 EPS for the current year.

Caterpillar Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be issued a dividend of $1.63 per share. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. This represents a $6.52 annualized dividend and a yield of 0.7%. Caterpillar’s payout ratio is 30.06%.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: JPMorgan raised its price target on Caterpillar to $1,165 from $1,125 and kept an “overweight” rating, signaling continued confidence in the stock’s upside. MarketScreener
• Positive Sentiment: Articles highlighted Caterpillar as a blue-chip stock to own, helped by bullish market momentum as the Dow reached a new milestone. Zacks
• Positive Sentiment: Caterpillar recently increased its dividend, reinforcing management’s confidence in cash generation and making the stock more attractive to income investors. Yahoo Finance
• Positive Sentiment: Coverage also pointed to Caterpillar’s improving growth story, including a large AI-related backlog and rising demand in its power generation business, which supports a stronger long-term outlook. Yahoo Finance
• Neutral Sentiment: Several market recap pieces noted Caterpillar’s gains were helping lift the Dow to record highs, but these articles were more about broad index performance than a new company-specific catalyst. MSN

Insider Activity

In other Caterpillar news, insider Denise C. Johnson sold 12,605 shares of the firm’s stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the transaction, the insider directly owned 49,825 shares in the company, valued at approximately $45,236,615.75. This trade represents a 20.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Anthony D. Fassino sold 16,283 shares of the firm’s stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the sale, the insider directly owned 46,041 shares in the company, valued at $42,210,388.80. This represents a 26.13% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 95,773 shares of company stock worth $87,642,635 in the last three months. Company insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Several hedge funds have recently modified their holdings of the company. Wellington Management Group LLP raised its position in Caterpillar by 3,949.8% during the third quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company’s stock valued at $2,494,568,000 after acquiring an additional 5,098,964 shares in the last quarter. Diamant Asset Management Inc. raised its position in Caterpillar by 68,427.2% during the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company’s stock valued at $2,224,992,000 after acquiring an additional 3,136,020 shares in the last quarter. Capital International Investors bought a new position in Caterpillar during the fourth quarter valued at approximately $1,225,317,000. Northwestern Mutual Wealth Management Co. raised its position in Caterpillar by 573.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company’s stock valued at $861,947,000 after acquiring an additional 1,281,087 shares in the last quarter. Finally, Bank of America Corp DE raised its position in Caterpillar by 16.0% during the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock valued at $3,860,457,000 after acquiring an additional 928,974 shares in the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

About Caterpillar

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.