Caterpillar (NYSE:CAT) Cut to “Hold” at Erste Group Bank

Erste Group Bank cut shares of Caterpillar (NYSE:CAT) from a buy rating to a hold rating in a report published on Monday, MarketBeat Ratings reports.

A number of other equities analysts have also weighed in on the company. Sanford C. Bernstein boosted their price objective on Caterpillar from $769.00 to $879.00 and gave the stock a “market perform” rating in a research note on Friday, May 1st. Wolfe Research lifted their price target on Caterpillar from $670.00 to $750.00 and gave the stock an “outperform” rating in a report on Tuesday, March 31st. Argus boosted their price target on shares of Caterpillar from $820.00 to $990.00 and gave the company a “buy” rating in a research report on Tuesday, May 5th. Morgan Stanley set a $915.00 price objective on shares of Caterpillar and gave the company an “equal weight” rating in a report on Friday, May 1st. Finally, HSBC raised their price objective on shares of Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. Thirteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $966.29.

Caterpillar Trading Down 7.0%

CAT opened at $782.32 on Monday. The firm has a market capitalization of $360.33 billion, a price-to-earnings ratio of 38.94, a price-to-earnings-growth ratio of 1.65 and a beta of 1.57. The company’s 50 day simple moving average is $926.90 and its two-hundred day simple moving average is $810.15. Caterpillar has a 1-year low of $405.46 and a 1-year high of $1,073.46. 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 (NYSE:CAT) last posted its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The business had revenue of $17.41 billion during the quarter, compared to analyst estimates of $16.53 billion. During the same period in the prior year, the business earned $4.25 earnings per share. The business’s revenue was up 22.2% compared to the same quarter last year. Analysts expect that Caterpillar will post 24.87 EPS for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be issued a dividend of $1.63 per share. The ex-dividend date is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s dividend payout ratio (DPR) is currently 32.45%.

Insider Activity

In related news, insider Anthony D. Fassino sold 16,283 shares of the business’s stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $916.80, for a total value of $14,928,254.40. Following the sale, the insider directly owned 46,041 shares in the company, valued at approximately $42,210,388.80. The trade was a 26.13% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Lange Bob De sold 24,222 shares of the company’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the completion of the transaction, the insider directly owned 86,029 shares in the company, valued at $79,397,884.68. The trade was a 21.97% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is currently owned by corporate insiders.

Institutional Trading of Caterpillar

Institutional investors have recently added to or reduced their stakes in the stock. Axxcess Wealth Management LLC grew its position in shares of Caterpillar by 2.8% during the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company’s stock worth $12,844,000 after buying an additional 604 shares in the last quarter. Juno Financial Group LLC acquired a new stake in Caterpillar in the fourth quarter valued at approximately $877,000. DSG Capital Advisors LLC purchased a new position in Caterpillar in the first quarter worth approximately $1,226,000. Cornerstone Planning LLC acquired a new position in Caterpillar during the 4th quarter worth approximately $4,517,000. Finally, Ticino Wealth acquired a new position in Caterpillar during the 4th quarter worth approximately $2,488,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar announced an investment of up to $10 million in Illinois as part of its five-year, $100 million workforce initiative. The program will support training and recruitment for manufacturing and industrial technician jobs, potentially strengthening the company’s long-term labor pipeline. Caterpillar Invests in the Future of Manufacturing Talent in Illinois
• Positive Sentiment: Some analysts and market commentators remain constructive ahead of Caterpillar’s upcoming earnings report. Zacks upgraded the stock to a Rank #2, citing improving earnings prospects and the potential for an earnings beat. What Makes Caterpillar a New Buy Stock
• Neutral Sentiment: Caterpillar is scheduled to be among next week’s closely watched earnings reports. Investors will focus on order trends, demand, margins, tariffs and whether data-center-related generator sales can offset broader concerns. The Week Ahead: Jobs Data, Top 10 Earnings Reports to Watch
• Neutral Sentiment: Recent coverage highlights Caterpillar’s exposure to technology companies building artificial-intelligence data centers, where its generators can provide backup power and speed construction timelines. Satya Nadella’s Microsoft Needs Power. Joe Creed’s Caterpillar Sells It.
• Negative Sentiment: Baird downgraded CAT to Hold from Buy and cut its price target by $300 to $900. Analyst Mig Dobre cited growing public and political backlash against data-center construction, raising concerns about the durability of AI-related demand that has helped support the stock’s rally. Caterpillar Is Downgraded on Growing Data Center Buildout Backlash
• Negative Sentiment: Valuation concerns are amplifying the downgrade. Commentary noted that Caterpillar trades at a substantial premium to its historical valuation, leaving less room for disappointment if growth expectations or data-center spending cool. Caterpillar Trades at Three Times Its Historical Multiple
• Negative Sentiment: Additional risks include possible supply-chain pressure from China’s rare-earth export restrictions, which could raise costs or complicate sourcing of components used in advanced equipment. Caterpillar Faces Rare Earth Squeeze

Caterpillar Company Profile

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.