FY2027 EPS Estimate for Caterpillar Boosted by Analyst

Key Points

• Erste Group Bank raised Caterpillar’s FY2027 EPS estimate to $32.36 from $32.14, though it maintained a “Hold” rating. Analysts overall give the stock a “Moderate Buy” consensus rating, with an average price target of $967.83.
• Caterpillar’s latest quarterly results exceeded expectations, with EPS of $8.17 versus the $6.22 consensus and revenue of $20.54 billion. Revenue increased 23.7% year over year.
• Shares opened at $686.52, well below their 50-day and 200-day moving averages, while the company declared a quarterly dividend of $1.63 per share, representing a 0.9% yield.

Caterpillar Inc. (NYSE:CAT - Free Report) - Investment analysts at Erste Group Bank upped their FY2027 earnings per share estimates for shares of Caterpillar in a research report issued on Wednesday, October 21st. Erste Group Bank analyst H. Engel now expects that the industrial products company will post earnings per share of $32.36 for the year, up from their previous estimate of $32.14. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Caterpillar's current full-year earnings is $27.74 per share.

Other analysts have also recently issued research reports about the stock. Robert W. Baird set a $970.00 price objective on shares of Caterpillar in a report on Wednesday, August 5th. Weiss Ratings raised shares of Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, October 14th. Truist Financial decreased their target price on shares of Caterpillar from $1,225.00 to $1,100.00 and set a "buy" rating for the company in a research report on Monday, October 5th. Freedom Broker upgraded shares of Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 price target on the stock in a research note on Thursday, September 10th. Finally, Barclays raised their price target on shares of Caterpillar from $800.00 to $900.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, Caterpillar presently has an average rating of "Moderate Buy" and an average target price of $967.83.

Caterpillar Stock Performance

Shares of CAT opened at $686.52 on Monday. The firm has a fifty day moving average of $798.82 and a 200-day moving average of $856.60. The company has a market cap of $315.57 billion, a price-to-earnings ratio of 29.54, a price-to-earnings-growth ratio of 1.18 and a beta of 1.58. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. Caterpillar has a 1 year low of $521.02 and a 1 year high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. The firm had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The firm's revenue was up 23.7% on a year-over-year basis. During the same period in the prior year, the business earned $4.72 EPS.

Caterpillar Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be issued a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, October 26th. Caterpillar's dividend payout ratio (DPR) is 28.06%.

Insider Activity at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the sale, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. The trade was 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 available through the SEC website. Company insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

Several institutional investors have recently bought and sold shares of the stock. Apollon Wealth Management LLC lifted its holdings in shares of Caterpillar by 24.2% in the third quarter. Apollon Wealth Management LLC now owns 31,214 shares of the industrial products company's stock valued at $25,308,000 after buying an additional 6,089 shares during the period. Tower View Wealth Management LLC boosted its stake in Caterpillar by 707.0% during the third quarter. Tower View Wealth Management LLC now owns 2,413 shares of the industrial products company's stock valued at $1,956,000 after buying an additional 2,114 shares in the last quarter. Hilton Head Capital Partners LLC acquired a new position in Caterpillar during the third quarter worth about $1,129,000. Slow Capital Inc. grew its holdings in Caterpillar by 0.6% during the third quarter. Slow Capital Inc. now owns 9,260 shares of the industrial products company's stock worth $7,508,000 after acquiring an additional 55 shares during the period. Finally, Kingswood Wealth Advisors LLC grew its holdings in Caterpillar by 13.4% during the third quarter. Kingswood Wealth Advisors LLC now owns 29,039 shares of the industrial products company's stock worth $23,545,000 after acquiring an additional 3,426 shares during the period. Institutional investors and hedge funds own 70.98% of the company's stock.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts expect Caterpillar to deliver year-over-year earnings growth in its upcoming third-quarter report. The company’s positive Earnings ESP and favorable estimate revisions suggest potential for an earnings beat, supported by manufacturing strength and demand for industrial equipment. Caterpillar Reports Next Week: Wall Street Expects Earnings Growth
• Positive Sentiment: Technical and fundamental indicators are encouraging some investors to view the recent decline as a buying opportunity. A hammer chart pattern points to possible support, while upward earnings-estimate revisions could help drive a near-term recovery. Bears Are Losing Control Over Caterpillar
• Positive Sentiment: Zacks lists Caterpillar among industrial companies with the potential to outperform third-quarter earnings expectations, reflecting continued confidence in the sector’s demand environment. Industrial Stocks Set to Outshine Q3 Earnings Estimates
• Neutral Sentiment: The key catalyst is Caterpillar’s forthcoming quarterly report. Investors will focus on whether earnings growth, revenue momentum and management’s outlook validate the optimistic estimates. The company’s previous quarter featured a substantial earnings and revenue beat, providing a supportive comparison.
• Negative Sentiment: The recent selloff has materially weakened CAT’s momentum and caused it to underperform the S&P 500, with much of the decline concentrated in only a few trading sessions. Continued investor caution, profit-taking or disappointment in the upcoming report could keep pressure on the shares. Caterpillar Just Dropped 10% in a Month

Caterpillar Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.