Caterpillar (NYSE:CAT) Lowered to “Hold” Rating by Erste Group Bank

Erste Group Bank cut shares of Caterpillar (NYSE:CAT) from a buy rating to a hold rating in a research note released on Monday, Marketbeat.com reports.

A number of other research analysts also recently weighed in on the stock. Wells Fargo & Company increased their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an “overweight” rating in a research report on Tuesday, June 23rd. Sanford C. Bernstein lifted their price target on shares of Caterpillar from $769.00 to $879.00 and gave the stock a “market perform” rating in a report on Friday, May 1st. Argus upped their price objective on Caterpillar from $820.00 to $990.00 and gave the company a “buy” rating in a research note on Tuesday, May 5th. UBS Group reissued a “neutral” rating and issued a $900.00 target price on shares of Caterpillar in a research report on Tuesday, June 2nd. Finally, Truist Financial boosted their target price on Caterpillar from $1,043.00 to $1,218.00 and gave the company a “buy” rating in a research note on Thursday, July 2nd. Fourteen research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $980.57.

Caterpillar Trading Down 1.7%

Shares of Caterpillar stock opened at $873.54 on Monday. The firm has a market cap of $402.34 billion, a PE ratio of 43.48, a P/E/G ratio of 1.74 and a beta of 1.57. 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. The stock has a fifty day moving average price of $929.10 and a 200-day moving average price of $807.20.

Caterpillar (NYSE:CAT) last issued its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, topping analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The company had revenue of $17.41 billion for the quarter, compared to the consensus estimate of $16.53 billion. During the same period in the previous year, the firm earned $4.25 EPS. The firm’s quarterly revenue was up 22.2% on a year-over-year basis. Equities research analysts anticipate that Caterpillar will post 24.87 EPS for the current year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a dividend of $1.63 per share. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, July 20th. Caterpillar’s dividend payout ratio (DPR) is currently 32.45%.

Insider Transactions at Caterpillar

In other Caterpillar news, insider Denise C. Johnson sold 12,605 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the transaction, the insider owned 49,825 shares in the company, valued at $45,236,615.75. This trade represents a 20.19% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 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 value of $22,354,968.24. Following the sale, the insider owned 86,029 shares in the company, valued at approximately $79,397,884.68. This represents a 21.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 95,773 shares of company stock valued at $87,642,635. 0.33% of the stock is currently owned by company insiders.

Institutional Trading of Caterpillar

Hedge funds and other institutional investors have recently bought and sold shares of the company. Stonebridge Financial Group LLC raised its position in shares of Caterpillar by 0.7% in the second quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company’s stock worth $1,741,000 after buying an additional 11 shares in the last quarter. Inspirion Wealth Advisors LLC increased its stake in Caterpillar by 1.2% in the 2nd quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company’s stock worth $936,000 after acquiring an additional 11 shares during the last quarter. Bell Bank raised its holdings in shares of Caterpillar by 0.6% in the 2nd quarter. Bell Bank now owns 1,865 shares of the industrial products company’s stock valued at $1,986,000 after acquiring an additional 11 shares in the last quarter. Cornerstone Advisory LLC boosted its position in shares of Caterpillar by 0.7% during the 1st quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company’s stock valued at $1,288,000 after acquiring an additional 12 shares during the last quarter. Finally, Advisory Resource Group increased its position in shares of Caterpillar by 0.8% in the fourth quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company’s stock worth $935,000 after purchasing an additional 13 shares during the last quarter. Institutional investors own 70.98% of the company’s stock.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s stock has approximately doubled over the past year. Investors have been encouraged by strong operating momentum and expectations that demand from data-center construction and related infrastructure spending could support future equipment sales. Caterpillar Stock Is Up 100% in a Year
• Positive Sentiment: The company’s most recent earnings report provided a fundamental backdrop for the rally: Caterpillar exceeded analysts’ quarterly earnings and revenue estimates, while revenue increased 22.2% year over year. This suggests strong demand and operating leverage, although investors may now require continued earnings growth to justify the elevated share price.
• Neutral Sentiment: Caterpillar has become a highly watched or “trending” stock on Zacks, increasing visibility among investors. However, heightened attention can contribute to greater trading volatility and does not itself change the company’s earnings outlook. Caterpillar Is a Trending Stock
• Negative Sentiment: Erste Group Bank AG downgraded Caterpillar from “buy” to “hold.” The change likely reflects caution after the substantial run-up, with investors potentially reassessing risk-reward prospects at a historically high valuation. Finviz Caterpillar Listing
• Negative Sentiment: Investor Michael Burry’s reported short position in Caterpillar benefited during the July pullback, highlighting the presence of bearish positioning. The stock’s roughly 100% annual gain, elevated price-to-earnings ratio and recent decline make profit-taking and volatility risks more significant. Michael Burry’s Short Bets on Caterpillar

About Caterpillar

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.