Zacks Research Forecasts Stronger Earnings for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Zacks Research increased their FY2025 EPS estimates for shares of Caterpillar in a report issued on Thursday, December 11th. Zacks Research analyst Team now anticipates that the industrial products company will earn $18.23 per share for the year, up from their previous forecast of $18.01. The consensus estimate for Caterpillar’s current full-year earnings is $19.86 per share. Zacks Research also issued estimates for Caterpillar’s Q4 2025 earnings at $4.31 EPS, Q1 2026 earnings at $3.87 EPS, Q3 2026 earnings at $5.77 EPS, Q1 2027 earnings at $5.08 EPS, Q2 2027 earnings at $6.31 EPS, Q3 2027 earnings at $6.21 EPS and FY2027 earnings at $22.62 EPS.

Caterpillar (NYSE:CAT) last posted its earnings results on Wednesday, October 29th. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.52 by $0.43. The business had revenue of $17.64 billion for the quarter, compared to analyst estimates of $16.72 billion. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. The company’s revenue for the quarter was up 9.5% on a year-over-year basis. During the same period in the prior year, the company posted $5.17 EPS.

Several other analysts have also recently weighed in on CAT. Citigroup increased their price target on shares of Caterpillar from $670.00 to $690.00 and gave the company a “buy” rating in a research note on Wednesday, December 10th. Erste Group Bank upgraded Caterpillar from a “hold” rating to a “buy” rating in a report on Friday, October 3rd. JPMorgan Chase & Co. raised their target price on Caterpillar from $650.00 to $730.00 and gave the company an “overweight” rating in a report on Thursday, October 30th. HSBC upgraded shares of Caterpillar from a “hold” rating to a “buy” rating and boosted their price target for the stock from $405.00 to $660.00 in a research note on Wednesday, November 5th. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Caterpillar in a research note on Monday, December 8th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $612.16.

Caterpillar Price Performance

Shares of NYSE CAT opened at $590.11 on Monday. The firm has a 50-day simple moving average of $556.52 and a 200-day simple moving average of $464.04. The company has a quick ratio of 0.86, a current ratio of 1.38 and a debt-to-equity ratio of 1.34. The stock has a market capitalization of $276.16 billion, a price-to-earnings ratio of 30.29, a price-to-earnings-growth ratio of 2.82 and a beta of 1.57. Caterpillar has a 52 week low of $267.30 and a 52 week high of $627.50.

Hedge Funds Weigh In On Caterpillar

Several institutional investors and hedge funds have recently made changes to their positions in CAT. Valeo Financial Advisors LLC raised its position in shares of Caterpillar by 36,842.1% during the 2nd quarter. Valeo Financial Advisors LLC now owns 7,299,751 shares of the industrial products company’s stock valued at $2,833,836,000 after acquiring an additional 7,279,991 shares during the last quarter. Norges Bank acquired a new stake in shares of Caterpillar during the second quarter worth $2,165,899,000. Wellington Management Group LLP boosted its position in Caterpillar by 3,949.8% during the 3rd quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company’s stock worth $2,494,568,000 after acquiring an additional 5,098,964 shares during the last quarter. Massachusetts Financial Services Co. MA lifted its position in Caterpillar by 1,851.8% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 1,830,414 shares of the industrial products company’s stock worth $873,382,000 after buying an additional 1,736,631 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its position in Caterpillar by 546.6% during the second quarter. Assenagon Asset Management S.A. now owns 843,093 shares of the industrial products company’s stock valued at $327,297,000 after purchasing an additional 712,711 shares during the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, insider Lange Bob De sold 14,638 shares of the firm’s stock in a transaction dated Wednesday, November 5th. The shares were sold at an average price of $562.36, for a total value of $8,231,825.68. Following the completion of the sale, the insider owned 80,209 shares in the company, valued at $45,106,333.24. This trade represents a 15.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jason Kaiser sold 10,707 shares of the business’s stock in a transaction on Tuesday, November 11th. The stock was sold at an average price of $563.60, for a total value of $6,034,465.20. Following the sale, the insider owned 8,649 shares in the company, valued at approximately $4,874,576.40. The trade was a 55.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 79,061 shares of company stock valued at $41,949,366. 0.33% of the stock is currently owned by company insiders.

Caterpillar Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Tuesday, January 20th will be given a $1.51 dividend. This represents a $6.04 annualized dividend and a yield of 1.0%. The ex-dividend date is Tuesday, January 20th. Caterpillar’s payout ratio is 31.01%.

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.