Caterpillar (NYSE:CAT) Cut to “Hold” at Wall Street Zen

Wall Street Zen downgraded shares of Caterpillar (NYSE:CAT) from a buy rating to a hold rating in a research note published on Saturday,Wall Street Zen reports.

Other equities analysts also recently issued reports about the company. President Capital initiated coverage on Caterpillar in a research note on Friday, September 18th. They issued a “buy” rating and a $999.00 price target for the company. Morgan Stanley reduced their price target on shares of Caterpillar from $915.00 to $675.00 and set an “equal weight” rating for the company in a report on Friday. Erste Group Bank cut shares of Caterpillar from a “buy” rating to a “hold” rating in a research report on Monday, July 27th. Barclays boosted their price target on shares of Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Finally, Royal Bank Of Canada dropped their price objective on Caterpillar from $897.00 to $722.00 and set a “sector perform” rating on the stock in a research note on Friday. Fifteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $898.25.

Caterpillar Trading Down 1.6%

NYSE:CAT opened at $612.78 on Friday. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The company has a market capitalization of $281.68 billion, a PE ratio of 29.95, a price-to-earnings-growth ratio of 1.22 and a beta of 1.58. The stock has a fifty day simple moving average of $778.93 and a 200-day simple moving average of $807.40. Caterpillar has a 52-week low of $537.08 and a 52-week high of $1,073.46.

Caterpillar (NYSE:CAT) last issued its earnings results 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 firm had revenue of $20.68 billion for the quarter, compared to analysts’ expectations of $20.76 billion. During the same quarter last year, the firm earned $4.95 earnings per share. The firm’s revenue for the quarter was up 17.3% compared to the same quarter last year. On average, equities research analysts expect that Caterpillar will post 27.75 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

The company also recently announced 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 annualized dividend 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 at Caterpillar

In other news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction 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 sale, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Institutional investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in Caterpillar in the 2nd quarter worth approximately $40,457,153,000. Bank of America Corp DE acquired a new stake in Caterpillar in the second quarter valued at approximately $5,818,150,000. Bank of New York Mellon Corp purchased a new stake in shares of Caterpillar during the second quarter valued at approximately $3,192,710,000. Legal & General Group Plc purchased a new stake in shares of Caterpillar during the second quarter valued at approximately $2,783,451,000. Finally, Ascentis Wealth Management LLC lifted its position 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 worth $2,711,772,000 after purchasing an additional 2,515,867 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar completed its acquisition of John Fabick Tractor Company, a more-than-century-old Cat dealer serving Missouri, Illinois, Wisconsin and Michigan’s Upper Peninsula. The transaction should expand Caterpillar’s regional distribution and strengthen parts, maintenance and equipment support, although financial terms were not disclosed. Caterpillar Inc. Acquires Fabick Cat Dealership
• Positive Sentiment: The company continues to benefit from strong demand: its third-quarter backlog reached a record $78 billion, while power-generation sales to users rose 75%, supported by data-center demand. One global bank reportedly sees substantial upside after the stock’s steep six-month decline. Caterpillar: 3 Key Takeaways for Long-Term Investors
• Neutral Sentiment: Freedom Broker lowered its price target to $800 from $980 but retained a Buy rating, implying considerable potential upside based on the current quotation. Truist also reiterated its Buy rating, providing some support for the long-term outlook. Freedom Broker Caterpillar Rating
• Negative Sentiment: DA Davidson cut its target to $685 from $882 and maintained a Neutral rating, arguing that Caterpillar trades at roughly a 50% premium to peers despite accelerating demand across its three segments. The sharp target reduction is putting the stock’s valuation premium under scrutiny. CAT Stock Gets Price Target Cuts
• Negative Sentiment: Additional target reductions from RBC, Citigroup, JPMorgan and Morgan Stanley are reinforcing concerns about Caterpillar’s elevated valuation and near-term risk, offsetting the company’s strong backlog and end-market demand.

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.