Caterpillar (NYSE:CAT) Shares Down 2.4% – Here’s Why

Caterpillar Inc. (NYSE:CAT) shares traded down 2.4% during trading on Tuesday. The stock traded as low as $566.12 and last traded at $584.2760. Approximately 3,973,760 shares traded hands during mid-day trading, an increase of 36% from the average session volume of 2,914,452 shares. The stock had previously closed at $598.88.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Anthropic reportedly agreed to take over 1.7 gigawatts of Caterpillar gas generators originally ordered by OnePWR, in a deal valued at about $3.4 billion. The order highlights how AI data centers’ growing power needs could support demand for Caterpillar’s power-generation equipment. Article: Caterpillar Is the Quiet Winner in Anthropic’s IPO
• Positive Sentiment: Caterpillar appeared on a list of stocks insiders are buying after the recent market sell-off. Insider purchases can signal confidence, though the article excerpt does not provide the size or details of the transactions. Article: Caterpillar Is Amongst the Notable Names Insiders Are Loading Up On
• Neutral Sentiment: Michael Burry reportedly trimmed his bearish CAT options position after the puts rose substantially in value. That reduces the size of one prominent bearish bet, but does not necessarily indicate a bullish view on the shares. Article: Michael Burry trims Caterpillar bearish bet
• Negative Sentiment: Technical coverage says CAT’s broader trend remains weak, despite its recent rebound. That leaves the stock vulnerable to continued volatility and may help explain pressure on shares even amid the AI-power demand story. Article: Caterpillar stock support and resistance levels after 5.8% rebound

Analysts Set New Price Targets

CAT has been the subject of a number of research reports. JPMorgan Chase & Co. decreased their price objective on Caterpillar from $1,100.00 to $1,000.00 and set an “overweight” rating for the company in a report on Friday, October 30th. Erste Group Bank cut shares of Caterpillar from a “buy” rating to a “hold” rating in a report on Monday, July 27th. Weiss Ratings downgraded shares of Caterpillar from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, October 29th. Truist Financial reiterated a “buy” rating and issued a $1,027.00 price target (down from $1,100.00) on shares of Caterpillar in a research note on Friday, October 30th. Finally, Wells Fargo & Company lowered their price target on shares of Caterpillar from $1,155.00 to $840.00 and set an “overweight” rating for the company in a research report on Monday, October 26th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Caterpillar has a consensus rating of “Moderate Buy” and an average target price of $898.25.

Caterpillar Stock Down 2.4%

The company’s 50 day moving average price is $756.16 and its two-hundred day moving average price is $806.00. The company has a current ratio of 1.42, a quick ratio of 0.88 and a debt-to-equity ratio of 1.50. The stock has a market cap of $268.57 billion, a P/E ratio of 22.92, a PEG ratio of 1.02 and a beta of 1.65.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Thursday, October 29th. The industrial products company reported $7.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.06 by $0.14. Caterpillar had a net margin of 15.21% and a return on equity of 59.87%. The firm had revenue of $20.68 billion during the quarter, compared to the consensus estimate of $20.76 billion. During the same quarter in the previous year, the firm posted $4.95 EPS. The company’s revenue for the quarter was up 17.3% compared to the same quarter last year. Equities analysts forecast that Caterpillar Inc. will post 27.39 earnings per share for the current year.

Caterpillar Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Monday, October 26th will be given 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 is Monday, October 26th. Caterpillar’s payout ratio is currently 25.58%.

Insider Buying and Selling

In other news, CEO Joseph 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 transaction of $26,211,760.98. Following the transaction, the chief executive officer owned 34,555 shares of the company’s stock, valued at approximately $27,954,303.90. The trade was a 48.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director James C. Fish, Jr. purchased 1,000 shares of the firm’s stock in a transaction that occurred on Monday, November 2nd. The shares were bought at an average price of $620.39 per share, for a total transaction of $620,390.00. Following the acquisition, the director directly owned 4,714 shares in the company, valued at $2,924,518.46. This trade represents a 26.93% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.33% of the stock is currently owned by corporate insiders.

Institutional Trading of Caterpillar

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Decker Retirement Planning Inc. grew its stake in Caterpillar by 440.0% in the second 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 in the last quarter. Matrix Trust Co raised its position in Caterpillar by 93.8% during the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after purchasing an additional 15 shares in the last quarter. Axiom Investment Management LLC purchased a new stake in shares of Caterpillar in the 2nd quarter worth $36,000. PFS Partners LLC lifted its holdings in shares of Caterpillar by 1,750.0% in the 3rd quarter. PFS Partners LLC now owns 37 shares of the industrial products company’s stock worth $30,000 after buying an additional 35 shares during the period. Finally, Tacita Capital Inc bought a new position in shares of Caterpillar during the 2nd quarter worth $47,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

About Caterpillar

Caterpillar Inc. is a global manufacturer of construction and mining equipment, engines, turbines, and related products and services. Its offerings include earthmoving and material-handling machines, diesel and natural gas engines, power-generation systems, and equipment and technologies used in mining and transportation. The company’s products are commonly sold under the Cat brand. Caterpillar serves customers in markets around the world through a network of independent dealers. Its businesses also provide parts, maintenance, equipment rental, and other support services, as well as financing and insurance through its financial services operations.