Caterpillar (NYSE:CAT) Stock Falls 1.6% on Analyst Downgrade

Caterpillar Inc. (NYSE:CAT) shares traded down 1.6% on Monday after Freedom Broker lowered their price target on the stock from $980.00 to $800.00. Freedom Broker currently has a buy rating on the stock. Caterpillar traded as low as $609.89 and last traded at $612.7780. 4,202,497 shares were traded during trading, an increase of 47% from the average session volume of 2,866,165 shares. The stock had previously closed at $622.75.

Other equities analysts also recently issued reports about the company. Barclays lifted their target price on Caterpillar from $800.00 to $900.00 and gave the company an “equal weight” rating in a research note on Thursday, August 6th. Weiss Ratings cut Caterpillar from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday. Citigroup cut their price target on Caterpillar from $950.00 to $800.00 and set a “buy” rating on the stock in a report on Friday. Truist Financial restated a “buy” rating and set a $1,027.00 price objective (down from $1,100.00) on shares of Caterpillar in a research report on Friday. Finally, Needham & Company LLC set a $980.00 price objective on Caterpillar in a research note on Thursday, September 10th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $898.25.

Insider Transactions at Caterpillar

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the company’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer owned 34,555 shares in the company, valued at approximately $27,954,303.90. This represents a 48.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.33% of the stock is owned by insiders.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Strong backlog supports future revenue. Caterpillar’s third-quarter order backlog reached a record $78 billion, extending delivery timelines well into the next decade. Power-generation sales to end users rose 75%, driven largely by data-center demand. Caterpillar: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Recent results showed continued growth. Third-quarter revenue increased 17.3% year over year to $20.68 billion, while adjusted earnings of $7.20 per share exceeded analysts’ expectations. CAT Q3 deep dive
• Positive Sentiment: Some analysts remain constructive. Truist reiterated its Buy rating, while Freedom Broker maintained a Buy rating despite reducing its price target to $800. One global bank reportedly sees potential for an approximately 85% gain if Caterpillar’s backlog and growth opportunities are fully recognized. Truist reiterates Buy rating
• Neutral Sentiment: Caterpillar acquired John Fabick Tractor Company, a Cat dealership serving parts of the Midwest. The transaction expands Caterpillar’s direct dealer operations and customer relationships, although financial terms were not disclosed. Caterpillar Inc. Acquires Fabick Cat Dealership
• Negative Sentiment: Analysts are cutting targets because of valuation concerns. DA Davidson reduced its target to $685 from $882 and kept a Neutral rating, arguing CAT trades at roughly a 50% premium to peers. Freedom Broker also lowered its target, while RBC, Citigroup, JPMorgan and Morgan Stanley have issued additional cautious outlooks. CAT Stock Gets Price Target Cuts

Hedge Funds Weigh In On Caterpillar

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of Caterpillar during the 2nd quarter worth about $40,457,153,000. Bank of America Corp DE acquired a new stake in shares of Caterpillar in the 2nd quarter worth approximately $5,818,150,000. Bank of New York Mellon Corp bought a new position in shares of Caterpillar in the second quarter valued at approximately $3,192,710,000. Legal & General Group Plc bought a new position in shares of Caterpillar in the second quarter valued at approximately $2,783,451,000. Finally, Ascentis Wealth Management LLC increased its stake in shares of Caterpillar by 110,539.0% during the second quarter. Ascentis Wealth Management LLC now owns 2,518,143 shares of the industrial products company’s stock valued at $2,711,772,000 after acquiring an additional 2,515,867 shares during the period. 70.98% of the stock is owned by institutional investors.

Caterpillar Stock Down 1.6%

The firm has a market cap of $281.68 billion, a price-to-earnings ratio of 24.04, a price-to-earnings-growth ratio of 1.07 and a beta of 1.65. The stock’s 50 day moving average is $783.25 and its 200 day moving average is $807.52. The company has a quick ratio of 0.88, a current ratio of 1.42 and a debt-to-equity ratio of 1.50.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, October 29th. The industrial products company reported $7.20 earnings per share for the quarter, topping analysts’ consensus estimates of $7.06 by $0.14. The firm had revenue of $20.68 billion during the quarter, compared to the consensus estimate of $20.76 billion. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. The firm’s revenue for the quarter was up 17.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.95 earnings per share. Analysts forecast that Caterpillar Inc. will post 27.75 EPS for the current year.

Caterpillar Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be paid a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend is Monday, October 26th. Caterpillar’s payout ratio is currently 25.58%.

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.