Caterpillar (NYSE:CAT) Stock Gets Price Target Cut from Freedom Broker
by Sarita Garza · The Markets DailyCaterpillar (NYSE:CAT – Free Report) had its target price reduced by Freedom Broker from $980.00 to $800.00 in a research report released on Monday morning,Benzinga reports. Freedom Broker currently has a buy rating on the industrial products company’s stock.
A number of other research firms also recently commented on CAT. Zacks Research downgraded Caterpillar from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Needham & Company LLC set a $980.00 target price on shares of Caterpillar in a research note on Thursday, September 10th. Robert W. Baird set a $970.00 target price on shares of Caterpillar in a research report on Wednesday, August 5th. Weiss Ratings lowered shares of Caterpillar from a “buy (b)” rating to a “buy (b-)” rating in a research note on Thursday, October 29th. Finally, Wells Fargo & Company dropped their price target on shares of Caterpillar from $1,155.00 to $840.00 and set an “overweight” rating on the stock in a research note on Monday, October 26th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $898.25.
Read Our Latest Analysis on CAT
Caterpillar Stock Performance
Shares of CAT stock opened at $591.34 on Monday. Caterpillar has a fifty-two week low of $537.08 and a fifty-two week high of $1,073.46. The stock’s 50-day moving average is $770.75 and its two-hundred day moving average is $807.05. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.42 and a quick ratio of 0.88. The firm has a market cap of $271.82 billion, a P/E ratio of 23.93, a PEG ratio of 1.07 and a beta of 1.65.
Caterpillar (NYSE:CAT – Get Free Report) last announced its quarterly earnings results on Thursday, October 29th. The industrial products company reported $7.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.06 by $0.14. The business had revenue of $20.68 billion during the quarter, compared to analyst estimates of $20.76 billion. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. The firm’s revenue was up 17.3% on a year-over-year basis. During the same period in the previous year, the company earned $4.95 EPS. Analysts predict that Caterpillar will post 27.62 earnings per share for the current fiscal year.
Caterpillar Announces Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be issued a dividend of $1.63 per share. The ex-dividend date of this dividend is Monday, October 26th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 1.1%. Caterpillar’s dividend payout ratio is currently 25.58%.
Insider Buying and Selling
In related news, Director C Jr bought 1,000 shares of Caterpillar stock in a transaction that occurred on Monday, November 2nd. The stock was purchased at an average cost of $620.39 per share, for a total transaction of $620,390.00. Following the acquisition, the director owned 4,714 shares in the company, 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. Also, CEO Joseph E. Creed sold 32,401 shares of the business’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the sale, the chief executive officer owned 34,555 shares of the company’s stock, valued at approximately $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.33% of the stock is currently owned by company insiders.
Institutional Trading of Caterpillar
A number of institutional investors and hedge funds have recently modified their holdings of the company. Decker Retirement Planning Inc. raised its position in Caterpillar by 440.0% in the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock worth $29,000 after purchasing an additional 22 shares during the last quarter. Matrix Trust Co boosted its position in Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after buying an additional 15 shares during the last quarter. Axiom Investment Management LLC bought a new position in Caterpillar in the 2nd quarter valued at $36,000. PFS Partners LLC boosted its position in Caterpillar by 1,750.0% in the 3rd quarter. PFS Partners LLC now owns 37 shares of the industrial products company’s stock valued at $30,000 after buying an additional 35 shares during the last quarter. Finally, Tacita Capital Inc acquired a new stake in shares of Caterpillar in the 2nd quarter valued at $47,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.
Key Headlines Impacting Caterpillar
Here are the key news stories impacting Caterpillar this week:
- Positive Sentiment: Caterpillar reported a record $78 billion backlog and is expanding engine and turbine capacity to serve surging data-center power demand—an important growth opportunity. Article: CAT Q3 Earnings Call Highlights Record Backlog and Capacity Push
- Positive Sentiment: Director James Fish bought 1,000 shares for about $620,000, increasing his stake by nearly 27%; the insider purchase may indicate confidence in the company. Article: Caterpillar Director Purchases Stock
- Neutral Sentiment: Caterpillar completed its acquisition of Fabick Cat, a regional dealership. The deal expands its dealer operations, but the articles provide no estimate of its near-term financial impact. Article: Caterpillar Completes Fabick Cat Acquisition
- Negative Sentiment: Morgan Stanley cut its price target by 26% after earnings, citing falling orders and dealers trimming inventory. The firm sees the stock facing a more cyclical test after its AI-related rally. Article: Morgan Stanley Cuts Caterpillar Stock Price Target
- Negative Sentiment: Despite robust demand, tariffs, manufacturing costs and production constraints are pressuring margins and limiting how quickly Caterpillar can fulfill its backlog. Article: Caterpillar Backlog Meets Capacity Constraints
- Negative Sentiment: One report attributed weakness partly to a broader pullback in AI-linked stocks following the U.S. election, noting Caterpillar was being traded as an AI-power beneficiary despite no company-specific news. Article: Caterpillar Sinks as Investors Reassess AI Trade
About Caterpillar
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.
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