Zacks Research Comments on Caterpillar Inc.’s Q4 2024 Earnings (NYSE:CAT)

Caterpillar Inc. (NYSE:CAT) – Analysts at Zacks Research decreased their Q4 2024 earnings per share (EPS) estimates for shares of Caterpillar in a research report issued on Monday, September 2nd. Zacks Research analyst M. Das now anticipates that the industrial products company will post earnings per share of $4.82 for the quarter, down from their prior estimate of $4.87. The consensus estimate for Caterpillar’s current full-year earnings is $21.87 per share. Zacks Research also issued estimates for Caterpillar’s Q2 2025 earnings at $5.56 EPS, Q3 2025 earnings at $5.20 EPS, Q4 2025 earnings at $5.01 EPS, FY2025 earnings at $21.26 EPS and Q2 2026 earnings at $5.91 EPS.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share for the quarter, beating the consensus estimate of $5.53 by $0.46. The company had revenue of $16.69 billion for the quarter, compared to analyst estimates of $16.91 billion. Caterpillar had a return on equity of 59.88% and a net margin of 16.58%. The firm’s revenue was down 3.6% on a year-over-year basis. During the same period in the previous year, the company posted $5.55 earnings per share.

A number of other research analysts have also recently issued reports on the company. Citigroup assumed coverage on Caterpillar in a research note on Wednesday, June 26th. They set a “buy” rating and a $380.00 price objective for the company. Truist Financial restated a “buy” rating and issued a $399.00 price target (up previously from $390.00) on shares of Caterpillar in a research note on Wednesday, August 7th. Bank of America decreased their price target on Caterpillar from $385.00 to $376.00 and set a “buy” rating for the company in a research note on Wednesday, August 7th. Raymond James started coverage on Caterpillar in a research note on Friday, June 28th. They issued a “market perform” rating for the company. Finally, UBS Group boosted their price target on Caterpillar from $270.00 to $285.00 and gave the stock a “sell” rating in a research note on Wednesday, August 7th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat, Caterpillar has an average rating of “Hold” and a consensus price target of $336.31.

Caterpillar Stock Down 1.1 %

Shares of NYSE:CAT opened at $336.57 on Wednesday. The stock has a fifty day simple moving average of $339.62 and a two-hundred day simple moving average of $343.30. The stock has a market capitalization of $164.60 billion, a price-to-earnings ratio of 15.36, a PEG ratio of 1.66 and a beta of 1.12. Caterpillar has a 12-month low of $223.76 and a 12-month high of $382.01. The company has a current ratio of 1.28, a quick ratio of 0.78 and a debt-to-equity ratio of 1.39.

Institutional Investors Weigh In On Caterpillar

A number of hedge funds have recently made changes to their positions in CAT. Partnership Wealth Management LLC purchased a new stake in shares of Caterpillar in the fourth quarter worth about $26,000. Richardson Financial Services Inc. purchased a new stake in Caterpillar during the fourth quarter valued at approximately $27,000. Thompson Investment Management Inc. purchased a new stake in Caterpillar during the first quarter valued at approximately $27,000. Bbjs Financial Advisors LLC purchased a new stake in Caterpillar during the second quarter valued at approximately $28,000. Finally, Financial Connections Group Inc. purchased a new stake in Caterpillar during the second quarter valued at approximately $28,000. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Caterpillar

In other news, insider Cheryl H. Johnson sold 2,975 shares of the company’s stock in a transaction dated Thursday, August 22nd. The stock was sold at an average price of $342.48, for a total value of $1,018,878.00. Following the completion of the transaction, the insider now owns 15,615 shares of the company’s stock, valued at $5,347,825.20. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. In other news, insider Cheryl H. Johnson sold 1,508 shares of the company’s stock in a transaction dated Tuesday, July 16th. The stock was sold at an average price of $350.00, for a total value of $527,800.00. Following the completion of the transaction, the insider now owns 18,515 shares of the company’s stock, valued at $6,480,250. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Cheryl H. Johnson sold 2,975 shares of the business’s stock in a transaction dated Thursday, August 22nd. The stock was sold at an average price of $342.48, for a total value of $1,018,878.00. Following the completion of the sale, the insider now owns 15,615 shares in the company, valued at $5,347,825.20. The disclosure for this sale can be found here. Over the last quarter, insiders sold 7,668 shares of company stock valued at $2,665,760. Company insiders own 0.33% of the company’s stock.

Caterpillar announced that its Board of Directors has authorized a stock repurchase program on Wednesday, June 12th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the industrial products company to repurchase up to 12.7% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its stock is undervalued.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, August 20th. Shareholders of record on Monday, July 22nd were issued a dividend of $1.41 per share. This represents a $5.64 annualized dividend and a yield of 1.68%. The ex-dividend date of this dividend was Monday, July 22nd. This is a positive change from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s payout ratio is currently 25.46%.

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.