Caterpillar (NYSE:CAT) Director Acquires 1,000 Shares of Company Stock

Caterpillar Inc. (NYSE:CAT) Director James Fish, Jr. bought 1,000 shares of the stock in a transaction on Monday, November 2nd. The shares were bought at an average price of $620.39 per share, with a total value of $620,390.00. Following the acquisition, the director owned 4,714 shares of the company’s stock, valued at $2,924,518.46. This trade represents a 26.93% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website.

Caterpillar Stock Up 1.8%

NYSE CAT traded up $11.33 during midday trading on Tuesday, hitting $624.95. 1,629,386 shares of the company traded hands, compared to its average volume of 2,860,628. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. The company has a market cap of $287.28 billion, a PE ratio of 24.50, a price-to-earnings-growth ratio of 1.22 and a beta of 1.65. Caterpillar Inc. has a 52 week low of $537.08 and a 52 week high of $1,073.46. The company’s 50-day simple moving average is $778.93 and its 200-day simple moving average is $807.40.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Thursday, October 29th. The industrial products company reported $7.20 earnings per share for the quarter, beating analysts’ consensus estimates of $7.06 by $0.14. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The company had revenue of $20.68 billion for the quarter, compared to the consensus estimate of $20.76 billion. During the same quarter last year, the company earned $4.95 earnings per share. The firm’s revenue for the quarter was up 17.3% compared to the same quarter last year. As a group, equities research analysts forecast that Caterpillar Inc. will post 27.75 earnings per share for the current year.

Caterpillar Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 26th will be given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Monday, October 26th. Caterpillar’s dividend payout ratio is presently 25.58%.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Robust demand supports the long-term outlook. Caterpillar’s third-quarter backlog reached a record $78 billion, while power-generation sales to users increased 75%, driven partly by data-center demand. This supports the view that Caterpillar could benefit from infrastructure, energy and artificial-intelligence-related capital spending. Caterpillar: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Analysts see potential upside despite the sell-off. Freedom Broker maintained a Buy rating while reducing its price target to $800. Truist also reiterated its Buy rating, and a separate global-bank view suggests Caterpillar’s backlog and exposure to power generation may be underappreciated. Caterpillar’s Sell-Off: Is the Market Missing Its AI Power Play?
• Neutral Sentiment: Caterpillar completed its acquisition of John Fabick Tractor Company. The dealership expands Caterpillar’s direct regional presence across Missouri, Illinois, Wisconsin and Michigan’s Upper Peninsula, potentially improving customer service and parts distribution. The financial impact was not disclosed and is likely modest near term. Caterpillar Inc. Acquires Fabick Cat Dealership
• Negative Sentiment: Valuation remains the main near-term overhang. DA Davidson cut its price target from $882 to $685 and kept a Neutral rating, citing Caterpillar’s premium valuation relative to peers. Royal Bank of Canada and Citigroup also trimmed their targets, reinforcing concerns that margin expectations and the stock’s valuation leave limited room for disappointment. CAT Stock Gets Price Target Cuts

Hedge Funds Weigh In On Caterpillar

Several institutional investors and hedge funds have recently modified their holdings of the stock. Stonebridge Financial Group LLC boosted its position in Caterpillar by 0.7% during the second quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company’s stock worth $1,741,000 after acquiring an additional 11 shares during the last quarter. Inspirion Wealth Advisors LLC grew its holdings in shares of Caterpillar by 1.2% in the second quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company’s stock valued at $936,000 after purchasing an additional 11 shares in the last quarter. Bell Bank increased its stake in Caterpillar by 0.6% during the 2nd quarter. Bell Bank now owns 1,865 shares of the industrial products company’s stock worth $1,986,000 after buying an additional 11 shares during the period. Cornerstone Advisory LLC lifted its holdings in Caterpillar by 0.7% during the 1st quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company’s stock worth $1,288,000 after buying an additional 12 shares in the last quarter. Finally, Harbor Investment Advisory LLC boosted its position in Caterpillar by 0.6% in the 2nd quarter. Harbor Investment Advisory LLC now owns 2,057 shares of the industrial products company’s stock valued at $2,190,000 after buying an additional 13 shares during the period. Institutional investors and hedge funds own 70.98% of the company’s stock.

Analyst Ratings Changes

Several research analysts recently commented on the stock. Erste Group Bank lowered shares of Caterpillar from a “buy” rating to a “hold” rating in a research note on Monday, July 27th. Zacks Research downgraded shares of Caterpillar from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Royal Bank Of Canada cut their price target on shares of Caterpillar from $897.00 to $722.00 and set a “sector perform” rating on the stock in a report on Friday. Citigroup reduced their price target on Caterpillar from $950.00 to $800.00 and set a “buy” rating on the stock in a research report on Friday. Finally, JPMorgan Chase & Co. lowered their price objective on Caterpillar from $1,100.00 to $1,000.00 and set an “overweight” rating for the company in a research report on Friday. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $898.25.

Caterpillar Company Profile

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.