Zacks Research Has Negative View of Caterpillar Q1 Earnings

Caterpillar Inc. (NYSE:CAT) – Stock analysts at Zacks Research lowered their Q1 2025 earnings per share estimates for shares of Caterpillar in a report released on Thursday, February 13th. Zacks Research analyst M. Das now anticipates that the industrial products company will earn $4.32 per share for the quarter, down from their previous forecast of $4.59. The consensus estimate for Caterpillar’s current full-year earnings is $20.05 per share. Zacks Research also issued estimates for Caterpillar’s FY2027 earnings at $22.12 EPS.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Thursday, January 30th. The industrial products company reported $5.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.97 by $0.17. Caterpillar had a return on equity of 58.18% and a net margin of 16.65%.

Several other analysts also recently issued reports on CAT. Robert W. Baird upped their price target on Caterpillar from $299.00 to $300.00 and gave the stock an “underperform” rating in a research note on Thursday, October 31st. Citigroup upped their price target on Caterpillar from $420.00 to $430.00 and gave the stock a “buy” rating in a research note on Friday, January 31st. Truist Financial decreased their price target on Caterpillar from $455.00 to $438.00 and set a “buy” rating for the company in a research note on Monday, February 3rd. Jefferies Financial Group increased their target price on Caterpillar from $455.00 to $475.00 and gave the company a “buy” rating in a research note on Friday, December 6th. Finally, Bank of America decreased their target price on Caterpillar from $452.00 to $414.00 and set a “buy” rating for the company in a research note on Friday, January 31st. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and eight have assigned a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $383.13.

Caterpillar Stock Performance

CAT opened at $355.42 on Monday. The company has a market cap of $171.60 billion, a PE ratio of 16.10, a price-to-earnings-growth ratio of 1.94 and a beta of 1.12. The stock has a 50-day moving average of $371.55 and a 200-day moving average of $372.29. Caterpillar has a 52-week low of $307.05 and a 52-week high of $418.50. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.89 and a current ratio of 1.42.

Caterpillar Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 20th. Stockholders of record on Tuesday, January 21st will be issued a dividend of $1.41 per share. This represents a $5.64 annualized dividend and a dividend yield of 1.59%. The ex-dividend date is Tuesday, January 21st. Caterpillar’s payout ratio is presently 25.56%.

Insider Transactions at Caterpillar

In related news, Director Gerald Johnson bought 100 shares of the business’s stock in a transaction that occurred on Wednesday, December 4th. The stock was acquired at an average price of $398.57 per share, for a total transaction of $39,857.00. Following the transaction, the director now directly owns 2,953 shares of the company’s stock, valued at $1,176,977.21. This represents a 3.51 % increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Anthony D. Fassino sold 6,279 shares of the firm’s stock in a transaction that occurred on Friday, November 29th. The stock was sold at an average price of $408.59, for a total value of $2,565,536.61. Following the transaction, the insider now owns 33,565 shares of the company’s stock, valued at $13,714,323.35. This trade represents a 15.76 % decrease in their position. The disclosure for this sale can be found here. 0.29% of the stock is owned by insiders.

Hedge Funds Weigh In On Caterpillar

Several institutional investors have recently bought and sold shares of the business. McMill Wealth Management bought a new position in Caterpillar in the 4th quarter valued at $476,000. Vega Investment Solutions bought a new position in Caterpillar in the 4th quarter valued at $434,000. Investment Management Corp VA ADV bought a new position in Caterpillar in the 4th quarter valued at $33,000. Helium Advisors LLC bought a new stake in shares of Caterpillar during the fourth quarter worth $209,000. Finally, Sunbelt Securities Inc. raised its position in shares of Caterpillar by 1.1% during the fourth quarter. Sunbelt Securities Inc. now owns 3,708 shares of the industrial products company’s stock worth $1,346,000 after acquiring an additional 42 shares during the last quarter. Institutional investors own 70.98% of the company’s stock.

About Caterpillar

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.