DA Davidson Has Negative View of Caterpillar FY2024 Earnings

Caterpillar Inc. (NYSE:CAT) – Equities researchers at DA Davidson cut their FY2024 earnings per share estimates for Caterpillar in a research note issued to investors on Monday, November 4th. DA Davidson analyst M. Shlisky now anticipates that the industrial products company will post earnings per share of $21.95 for the year, down from their previous estimate of $22.79. The consensus estimate for Caterpillar’s current full-year earnings is $21.82 per share. DA Davidson also issued estimates for Caterpillar’s FY2025 earnings at $22.93 EPS.

Caterpillar (NYSE:CAT) last posted its earnings results on Wednesday, October 30th. The industrial products company reported $5.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $5.33 by ($0.16). Caterpillar had a net margin of 16.26% and a return on equity of 59.09%. The company had revenue of $16.11 billion during the quarter, compared to analysts’ expectations of $16.37 billion. During the same quarter last year, the firm earned $5.52 EPS. Caterpillar’s revenue for the quarter was down 4.2% on a year-over-year basis.

Several other research firms have also issued reports on CAT. Evercore ISI cut their target price on Caterpillar from $338.00 to $321.00 and set an “in-line” rating on the stock in a research note on Monday, August 19th. Morgan Stanley downgraded Caterpillar from an “equal weight” rating to an “underweight” rating and lowered their price target for the stock from $349.00 to $332.00 in a report on Monday, October 14th. Robert W. Baird raised their price target on Caterpillar from $299.00 to $300.00 and gave the stock an “underperform” rating in a report on Thursday, October 31st. UBS Group raised their price target on Caterpillar from $285.00 to $295.00 and gave the stock a “sell” rating in a report on Monday. Finally, StockNews.com downgraded Caterpillar from a “buy” rating to a “hold” rating in a report on Tuesday, September 24th. Three investment analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have given a buy rating to the company. Based on data from MarketBeat, Caterpillar has an average rating of “Hold” and an average price target of $358.19.

Caterpillar Price Performance

CAT opened at $416.97 on Wednesday. The business’s 50-day moving average is $374.93 and its two-hundred day moving average is $352.11. Caterpillar has a 1 year low of $233.57 and a 1 year high of $418.30. The company has a debt-to-equity ratio of 1.33, a current ratio of 1.40 and a quick ratio of 0.86. The firm has a market capitalization of $202.19 billion, a PE ratio of 19.33, a price-to-earnings-growth ratio of 1.86 and a beta of 1.10.

Caterpillar Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 20th. Investors of record on Monday, October 21st will be given a dividend of $1.41 per share. This represents a $5.64 annualized dividend and a yield of 1.35%. The ex-dividend date of this dividend is Monday, October 21st. Caterpillar’s dividend payout ratio is currently 26.15%.

Insider Activity at Caterpillar

In related news, insider Cheryl H. Johnson sold 2,975 shares of Caterpillar stock in a transaction that occurred on Thursday, August 22nd. The stock was sold at an average price of $342.48, for a total transaction of $1,018,878.00. Following the completion of the transaction, the insider now directly owns 15,615 shares in the company, valued at approximately $5,347,825.20. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, CAO William E. Schaupp sold 968 shares of the business’s stock in a transaction that occurred on Friday, November 1st. The stock was sold at an average price of $380.98, for a total value of $368,788.64. Following the completion of the sale, the chief accounting officer now directly owns 1,686 shares in the company, valued at $642,332.28. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Cheryl H. Johnson sold 2,975 shares of the business’s stock in a transaction that occurred on Thursday, August 22nd. The shares were 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 of the company’s stock, valued at $5,347,825.20. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 9,792 shares of company stock worth $3,515,978. 0.29% of the stock is owned by corporate insiders.

Institutional Trading of Caterpillar

A number of institutional investors and hedge funds have recently made changes to their positions in CAT. Bbjs Financial Advisors LLC purchased a new stake in shares of Caterpillar during the second quarter worth approximately $28,000. Financial Connections Group Inc. purchased a new stake in shares of Caterpillar during the second quarter worth approximately $28,000. Capital Performance Advisors LLP purchased a new stake in shares of Caterpillar during the third quarter worth approximately $36,000. Fairscale Capital LLC purchased a new stake in shares of Caterpillar during the second quarter worth approximately $36,000. Finally, POM Investment Strategies LLC increased its position in shares of Caterpillar by 2,160.0% during the second quarter. POM Investment Strategies LLC now owns 113 shares of the industrial products company’s stock worth $38,000 after purchasing an additional 108 shares in the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Caterpillar Company Profile

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.