TLDR
- CAT hit an all-time high of $947.44, up 162.57% over the past year
- Q1 EPS of $5.54 beat estimates of $4.65; revenue of $17.42B was up 22.2% YoY
- Quarterly dividend raised 8% to $1.63 per share
- Wells Fargo raised price target to $1,050; Zacks upgraded to Strong Buy
- CFO and another insider sold a combined ~$36.7M in stock in early May
Caterpillar stock hit an all-time high of $947.44 on Monday, up roughly 1.89% on the day and trading around $933.46 at the open. The stock has surged 162.57% over the past twelve months, pushing its market cap to approximately $430 billion.
The run-up comes after a strong Q1 earnings report on April 30. CAT posted EPS of $5.54, clearing the analyst consensus of $4.65 by $0.89. Revenue came in at $17.42 billion, beating estimates of $16.53 billion and up 22.2% from the same quarter last year.
For context, CAT earned $4.25 per share in Q1 of the prior year. Analysts now expect full-year EPS of $24.62.
The company also raised its quarterly dividend by 8%, from $1.51 to $1.63 per share. The next payment is scheduled for August 19, with a record date of July 20. On an annualized basis, that works out to $6.52 per share, representing a yield of around 0.7%.
Analyst Targets Move Higher
Wall Street has been busy updating price targets following the earnings beat. Wells Fargo lifted its target from $960 to $1,050, maintaining an Overweight rating. Oppenheimer set a target of $980 with an Outperform rating. Argus moved its target from $820 to $990 with a Buy. Rothschild & Co Redburn raised its target to $950 but kept a Neutral rating.
Zacks upgraded CAT to Strong Buy on June 8. The average analyst consensus sits at Moderate Buy, with a mean price target of $933.27.
Institutional investors have also been adding exposure. 71 West Capital Partners opened a new position in Q4, buying 2,400 shares worth roughly $1.375 million. Brighton Jones increased its stake by 51.5%, while United Bank doubled its position. In total, institutional investors hold about 71% of CAT stock.
Insider Selling Draws Attention
Not everyone is adding. CFO Andrew Bonfield sold 15,674 shares on May 6 at an average of $918.71, totaling around $14.4 million. That reduced his direct holdings by 22.85%. Insider Bob De Lange sold 24,222 shares the same day at $922.92, for a combined value of about $22.4 million. That was a 21.97% reduction in his position.
Over the last quarter, insiders sold a total of 95,773 shares worth roughly $87.6 million. Company insiders collectively own 0.33% of the stock.
On the financial side, Caterpillar Financial Services issued $3.25 billion in new medium-term notes under an existing shelf registration. UBS raised its price target to $900, citing strong Q1 results and optimism around 2027 and 2028 growth projections.
The 50-day moving average stands at $856.17 and the 200-day at $730.40. CAT’s 52-week low was $356.96. The stock currently trades at a P/E of 46.66, which InvestingPro flags as elevated relative to its Fair Value estimate.
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