Caterpillar (NYSE:CAT) Shares Up 2.1% After Dividend Announcement

Caterpillar Inc. (NYSE:CAT)’s stock price shot up 2.1% during trading on Thursday following a dividend announcement from the company. The company traded as high as $795.52 and last traded at $787.4570. 2,778,857 shares traded hands during trading, a decline of 1% from the average session volume of 2,807,777 shares. The stock had previously closed at $771.58.

The newly announced dividend which will be paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th will be given a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Monday, April 20th. Caterpillar’s payout ratio is currently 32.09%.

Analyst Ratings Changes

Several research firms have weighed in on CAT. Citigroup boosted their target price on shares of Caterpillar from $760.00 to $785.00 and gave the stock a “buy” rating in a research report on Monday, March 9th. Rothschild & Co Redburn boosted their target price on shares of Caterpillar from $650.00 to $700.00 and gave the stock a “neutral” rating in a research report on Wednesday, February 4th. Raymond James Financial reissued a “market perform” rating on shares of Caterpillar in a research report on Wednesday, January 7th. Jefferies Financial Group boosted their target price on shares of Caterpillar from $785.00 to $825.00 and gave the stock a “buy” rating in a research report on Friday, March 6th. Finally, Sanford C. Bernstein boosted their target price on shares of Caterpillar from $678.00 to $769.00 and gave the stock a “market perform” rating in a research report on Thursday. Sixteen investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $741.68.

Caterpillar Price Performance

The firm’s fifty day moving average price is $723.94 and its 200 day moving average price is $621.03. The firm has a market capitalization of $366.39 billion, a PE ratio of 41.84, a P/E/G ratio of 1.82 and a beta of 1.52. The company has a current ratio of 1.44, a quick ratio of 0.94 and a debt-to-equity ratio of 1.44.

Caterpillar (NYSE:CAT) last released its quarterly earnings data on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, beating the consensus estimate of $4.67 by $0.49. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. The business had revenue of $19.13 billion for the quarter, compared to the consensus estimate of $17.81 billion. During the same period in the prior year, the firm earned $5.14 EPS. The business’s revenue for the quarter was up 17.9% on a year-over-year basis. As a group, equities analysts forecast that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Market/rally lift — Caterpillar was highlighted amid a Dow advance that pushed industrial names higher, providing near‑term momentum into the session. Dow’s 312-point rally highlighted by gains in shares of Amazon.com Inc., Caterpillar
• Positive Sentiment: Fundamentals & momentum — Coverage notes strong recent price performance alongside record sales and earnings beats, keeping investor interest high as analysts and traders re‑assess CAT’s industrial exposure. Caterpillar (CAT) Laps the Stock Market: Here’s Why
• Positive Sentiment: AI/data‑center tailwind and backlog — Analysts and market commentary point to growing demand for power/generator equipment from AI data centers plus a roughly $51B backlog that supports revenue visibility and upside to sales. Caterpillar: AI-Driven Power Demand And Strong Backlog Support Continued Upside
• Positive Sentiment: Dividend continuity — Board maintained the quarterly dividend ($1.51/share), signaling cash‑flow stability and returning capital to shareholders. That supports investor confidence in the business mix. Caterpillar Inc. Maintains Dividend
• Neutral Sentiment: Orderly CFO transition — CFO Andrew Bonfield will retire Oct. 1, 2026, with internal successor Kyle Epley taking over May 1; the planned handover reduces execution risk vs. an abrupt departure. Caterpillar Elects New Chief Financial Officer
• Neutral Sentiment: Mixed analyst signals — Erste raised FY2026 EPS estimates (modestly bullish), while some firms’ price targets remain clustered below or around current levels; divergent targets keep valuation debates alive. MarketBeat CAT profile (estimates & targets)
• Neutral Sentiment: Bernstein adjusted target — Sanford C. Bernstein raised its price target to $769 but kept a “market perform” rating (target sits near/just below the market), a mixed read for long‑term upside. Bernstein adjusts price target on Caterpillar to $769
• Negative Sentiment: Insider & institutional selling — Data summaries show significant insider sales and large institutional reductions by some funds, which can weigh on sentiment if sustained. Caterpillar: AI-Driven Power Demand And Strong Backlog Support Continued Upside (includes ownership/insider notes)

Insider Activity

In related news, CAO William E. Schaupp sold 972 shares of the stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $764.20, for a total transaction of $742,802.40. Following the sale, the chief accounting officer directly owned 824 shares of the company’s stock, valued at approximately $629,700.80. This represents a 54.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Anthony D. Fassino sold 7,891 shares of the stock in a transaction on Friday, February 13th. The stock was sold at an average price of $776.90, for a total transaction of $6,130,517.90. Following the sale, the insider directly owned 46,643 shares in the company, valued at $36,236,946.70. This trade represents a 14.47% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 125,950 shares of company stock valued at $88,577,390 in the last three months. Corporate insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

A number of hedge funds have recently added to or reduced their stakes in the company. J. Derek Lewis & Associates Inc. purchased a new stake in Caterpillar during the fourth quarter worth $443,000. Purpose Unlimited Inc. purchased a new stake in Caterpillar during the fourth quarter worth $964,000. Cornerstone Planning LLC purchased a new stake in Caterpillar during the fourth quarter worth $4,517,000. Forty three Eighteen Advisors LLC purchased a new stake in Caterpillar during the fourth quarter worth $5,335,000. Finally, Rockefeller Capital Management L.P. raised its position in Caterpillar by 22.2% during the fourth quarter. Rockefeller Capital Management L.P. now owns 346,392 shares of the industrial products company’s stock worth $198,438,000 after acquiring an additional 62,895 shares during the period. 70.98% of the stock is owned by hedge funds and other institutional investors.

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.