Caterpillar (NYSE:CAT) Director Buys 1,000 Shares of Company Stock

Key Points

• Caterpillar Director James Fish Jr. purchased 1,000 shares at an average price of $620.39, investing $620,390 and increasing his holdings by 26.93% to 4,714 shares.
• Caterpillar’s latest quarterly results exceeded expectations, with EPS of $7.20 versus the $7.06 consensus and revenue rising 17.3% year over year to $20.68 billion.
• The stock pays a quarterly dividend of $1.63 per share, or $6.52 annualized, representing a 1.0% yield; analysts maintain a “Moderate Buy” consensus with an average price target of $898.25, though several firms have recently lowered their targets over valuation concerns.

Caterpillar Inc. (NYSE:CAT - Get Free Report) Director James Fish, Jr. bought 1,000 shares of the business's stock in a transaction dated Monday, November 2nd. The shares were acquired at an average cost of $620.39 per share, with a total value of $620,390.00. Following the completion of the purchase, the director owned 4,714 shares in the company, valued at approximately $2,924,518.46. This represents a 26.93% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink.

Caterpillar Price Performance

Shares of NYSE:CAT traded up $11.33 on Tuesday, hitting $624.95. The company had a trading volume of 1,629,386 shares, compared to its average volume of 2,860,628. Caterpillar Inc. has a 52-week low of $537.08 and a 52-week high of $1,073.46. The business has a 50 day moving average of $778.93 and a 200 day moving average of $807.40. The company has a market cap of $287.28 billion, a PE ratio of 24.50, a PEG ratio of 1.22 and a beta of 1.65. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, topping analysts' consensus estimates of $7.06 by $0.14. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The business had revenue of $20.68 billion during the quarter, compared to the consensus estimate of $20.76 billion. During the same period in the prior year, the firm posted $4.95 EPS. The business's revenue for the quarter was up 17.3% on a year-over-year basis. As a group, equities analysts anticipate that Caterpillar Inc. will post 27.75 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 26th will be paid a dividend of $1.63 per share. The ex-dividend date of this dividend is Monday, October 26th. This represents a $6.52 dividend on an annualized basis and a yield of 1.0%. Caterpillar's dividend payout ratio is currently 25.58%.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Robust demand supports the long-term outlook. Caterpillar’s third-quarter backlog reached a record $78 billion, while power-generation sales to users increased 75%, driven partly by data-center demand. This supports the view that Caterpillar could benefit from infrastructure, energy and artificial-intelligence-related capital spending. Caterpillar: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Analysts see potential upside despite the sell-off. Freedom Broker maintained a Buy rating while reducing its price target to $800. Truist also reiterated its Buy rating, and a separate global-bank view suggests Caterpillar’s backlog and exposure to power generation may be underappreciated. Caterpillar’s Sell-Off: Is the Market Missing Its AI Power Play?
• Neutral Sentiment: Caterpillar completed its acquisition of John Fabick Tractor Company. The dealership expands Caterpillar’s direct regional presence across Missouri, Illinois, Wisconsin and Michigan’s Upper Peninsula, potentially improving customer service and parts distribution. The financial impact was not disclosed and is likely modest near term. Caterpillar Inc. Acquires Fabick Cat Dealership
• Negative Sentiment: Valuation remains the main near-term overhang. DA Davidson cut its price target from $882 to $685 and kept a Neutral rating, citing Caterpillar’s premium valuation relative to peers. Royal Bank of Canada and Citigroup also trimmed their targets, reinforcing concerns that margin expectations and the stock’s valuation leave limited room for disappointment. CAT Stock Gets Price Target Cuts

Analyst Ratings Changes

Several research analysts have commented on CAT shares. Robert W. Baird set a $970.00 price target on Caterpillar in a research report on Wednesday, August 5th. Zacks Research cut shares of Caterpillar from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Oppenheimer reissued an "outperform" rating and issued a $1,009.00 target price on shares of Caterpillar in a research note on Thursday, October 29th. Royal Bank Of Canada decreased their price objective on Caterpillar from $897.00 to $722.00 and set a "sector perform" rating for the company in a report on Friday. Finally, Weiss Ratings cut Caterpillar from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $898.25.

Institutional Trading of Caterpillar

Large investors have recently modified their holdings of the stock. BlackRock Inc. bought a new position in Caterpillar during the 2nd quarter valued at about $40,457,153,000. Bank of America Corp DE purchased a new stake in shares of Caterpillar in the 2nd quarter worth $5,818,150,000. Bank of New York Mellon Corp bought a new position in Caterpillar during the 2nd quarter worth about $3,192,710,000. Legal & General Group Plc bought a new position in Caterpillar during the 2nd quarter worth about $2,783,451,000. Finally, Ascentis Wealth Management LLC increased its position in Caterpillar by 110,539.0% during the 2nd quarter. Ascentis Wealth Management LLC now owns 2,518,143 shares of the industrial products company's stock valued at $2,711,772,000 after purchasing an additional 2,515,867 shares during the period. Institutional investors and hedge funds own 70.98% of the company's stock.

About Caterpillar

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.

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