Zacks Research Forecasts Stronger Earnings for Caterpillar

Caterpillar Inc. (NYSE:CATFree Report) – Equities researchers at Zacks Research upped their FY2024 earnings estimates for shares of Caterpillar in a research note issued to investors on Friday, October 25th. Zacks Research analyst M. Das now anticipates that the industrial products company will post earnings of $21.63 per share for the year, up from their previous estimate of $21.58. The consensus estimate for Caterpillar’s current full-year earnings is $21.91 per share. Zacks Research also issued estimates for Caterpillar’s Q4 2024 earnings at $4.87 EPS, Q1 2025 earnings at $5.13 EPS and Q1 2026 earnings at $5.39 EPS.

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

Several other analysts have also weighed in on the company. Evercore ISI lowered their target price on Caterpillar from $338.00 to $321.00 and set an “in-line” rating on the stock in a report on Monday, August 19th. Truist Financial increased their price objective on shares of Caterpillar from $399.00 to $456.00 and gave the company a “buy” rating in a research note on Wednesday, October 9th. JPMorgan Chase & Co. raised their target price on shares of Caterpillar from $435.00 to $500.00 and gave the company an “overweight” rating in a report on Monday, October 14th. StockNews.com downgraded shares of Caterpillar from a “buy” rating to a “hold” rating in a report on Tuesday, September 24th. Finally, Citigroup raised their price objective on shares of Caterpillar from $380.00 to $445.00 and gave the stock a “buy” rating in a research note on Wednesday, October 9th. Three investment analysts have rated the stock with a sell rating, nine have given a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat, Caterpillar presently has a consensus rating of “Hold” and an average target price of $355.50.

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Caterpillar Stock Performance

CAT opened at $387.77 on Monday. Caterpillar has a 1-year low of $223.76 and a 1-year high of $403.60. The stock has a market cap of $189.64 billion, a P/E ratio of 17.51, a P/E/G ratio of 1.85 and a beta of 1.10. The stock’s 50 day simple moving average is $370.38 and its 200 day simple moving average is $350.94. The company has a debt-to-equity ratio of 1.39, a current ratio of 1.28 and a quick ratio of 0.78.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in CAT. Bbjs Financial Advisors LLC acquired a new position in Caterpillar during the 2nd quarter worth approximately $28,000. Financial Connections Group Inc. acquired a new position in shares of Caterpillar during the second quarter worth $28,000. Fairman Group LLC purchased a new position in shares of Caterpillar in the first quarter valued at $29,000. Fairscale Capital LLC acquired a new stake in Caterpillar during the 2nd quarter valued at $36,000. Finally, POM Investment Strategies LLC increased its stake in Caterpillar by 2,160.0% during the 2nd quarter. POM Investment Strategies LLC now owns 113 shares of the industrial products company’s stock worth $38,000 after buying an additional 108 shares during the period. 70.98% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Caterpillar

In related news, Director Gerald Johnson purchased 100 shares of the business’s stock in a transaction on Wednesday, September 4th. The shares were bought at an average price of $338.59 per share, with a total value of $33,859.00. Following the completion of the purchase, the director now directly owns 2,842 shares in the company, valued at approximately $962,272.78. This trade represents a 0.00 % increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at this hyperlink. In other Caterpillar news, insider Anthony D. Fassino sold 3,185 shares of the business’s stock in a transaction dated Friday, August 30th. The stock was sold at an average price of $351.36, for a total transaction of $1,119,081.60. Following the completion of the sale, the insider now owns 33,442 shares of the company’s stock, valued at approximately $11,750,181.12. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Gerald Johnson acquired 100 shares of the business’s stock in a transaction dated Wednesday, September 4th. The stock was purchased at an average price of $338.59 per share, for a total transaction of $33,859.00. Following the completion of the acquisition, the director now owns 2,842 shares in the company, valued at approximately $962,272.78. This trade represents a 0.00 % increase in their ownership of the stock. The disclosure for this purchase can be found here. 0.33% of the stock is owned by insiders.

Caterpillar Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 20th. Stockholders of record on Monday, October 21st will be issued a dividend of $1.41 per share. The ex-dividend date is Monday, October 21st. This represents a $5.64 annualized dividend and a dividend yield of 1.45%. Caterpillar’s payout ratio is currently 25.46%.

Caterpillar Company Profile

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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.

See Also

Earnings History and Estimates for Caterpillar (NYSE:CAT)

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