Caterpillar (NYSE:CAT) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Caterpillar to “hold” from “buy,” although broader analyst sentiment remains positive, with a “Moderate Buy” consensus and an average price target of $994.38.
• Caterpillar reported a strong latest quarter, earning $8.17 per share versus the $6.22 consensus estimate and generating $20.54 billion in revenue, up 23.7% year over year.
• The company is expanding its autonomous-equipment and physical-AI initiatives, while CEO Joseph Creed sold approximately $26.2 million worth of shares; institutional investors own nearly 71% of the stock.

Caterpillar (NYSE:CAT - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday, Wall Street Zen reports.

Other equities analysts have also recently issued research reports about the stock. Oppenheimer reissued an "outperform" rating and issued a $1,118.00 target price on shares of Caterpillar in a report on Tuesday, August 4th. Freedom Broker upgraded Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 price target on the stock in a research report on Thursday, September 10th. Royal Bank Of Canada raised their price target on Caterpillar from $877.00 to $897.00 and gave the stock a "sector perform" rating in a report on Wednesday, August 5th. Weiss Ratings upgraded Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 19th. Finally, President Capital assumed coverage on Caterpillar in a research note on Friday, September 18th. They issued a "buy" rating and a $999.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have given a Hold rating to the company's stock. According to MarketBeat.com, Caterpillar has an average rating of "Moderate Buy" and an average price target of $994.38.

Caterpillar Stock Performance

Shares of CAT opened at $820.66 on Friday. The stock has a market capitalization of $377.23 billion, a PE ratio of 35.31, a price-to-earnings-growth ratio of 1.40 and a beta of 1.60. The business's fifty day moving average price is $828.22 and its 200 day moving average price is $844.77. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. Caterpillar has a 12-month low of $462.38 and a 12-month high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The company had revenue of $20.54 billion for the quarter, compared to analysts' expectations of $19.34 billion. During the same period in the prior year, the company earned $4.72 earnings per share. The firm's revenue was up 23.7% compared to the same quarter last year. Equities research analysts forecast that Caterpillar will post 27.37 EPS for the current year.

Insider Buying and Selling

In related news, CEO Joseph E. Creed sold 32,401 shares of the firm's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total value 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. This trade represents a 48.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.33% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Stonebridge Financial Group LLC lifted its stake in Caterpillar by 0.7% in the 2nd quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company's stock worth $1,741,000 after acquiring an additional 11 shares in the last quarter. Inspirion Wealth Advisors LLC grew its stake in Caterpillar by 1.2% during the 2nd quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company's stock valued at $936,000 after acquiring an additional 11 shares in the last quarter. Bell Bank increased its holdings in shares of Caterpillar by 0.6% in the 2nd quarter. Bell Bank now owns 1,865 shares of the industrial products company's stock valued at $1,986,000 after purchasing an additional 11 shares during the period. Cornerstone Advisory LLC lifted its position in shares of Caterpillar by 0.7% in the first quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company's stock worth $1,288,000 after purchasing an additional 12 shares in the last quarter. Finally, Advisory Resource Group lifted its position in shares of Caterpillar by 0.8% in the fourth quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company's stock worth $935,000 after purchasing an additional 13 shares in the last quarter. Institutional investors own 70.98% of the company's stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is partnering with FieldAI to advance “physical AI” and autonomous robotics. The collaboration could improve the company’s ability to deploy intelligent machines across construction, mining and other industrial sites, strengthening its long-term technology narrative. Caterpillar partners with FieldAI to advance physical AI and autonomous robotics
• Positive Sentiment: Reports that remote autonomy is allowing equipment operators to work outside the cab provide early evidence that Caterpillar’s autonomous hauling technology is moving toward commercial deployment. Three operating sites have reportedly demonstrated the technology, although fleet size and contract economics remain undisclosed. Caterpillar Stock Gains as Remote Autonomy Leaves the Cab
• Positive Sentiment: Caterpillar was cited among the stocks helping lift the Dow, indicating that investors were rewarding the company alongside Microsoft. The attention follows Caterpillar’s strong latest quarter, including revenue above $20 billion and an earnings beat. Dow up on gains in shares of Microsoft and Caterpillar
• Positive Sentiment: Analysts continue to highlight Caterpillar’s dominant positions in construction and mining, substantial free-cash-flow generation, dividend-growth potential and demand linked to the AI data-center build-out. Is Caterpillar the Best Industrials Stock to Buy Right Now?

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction, mining, and industrial equipment. The company's products include excavators, dozers, wheel loaders, motor graders, articulated trucks, and off-highway trucks, as well as related attachments and work tools. Caterpillar also supplies replacement parts, equipment services, technology solutions, and rental support through its dealer network.

The company serves customers in construction, mining, quarrying, energy, transportation, forestry, agriculture, and government-related industries.

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