Caterpillar (NYSE:CAT) Stock Price Target Cut by Citigroup

Key Points

• Citigroup lowered Caterpillar’s price target from $950 to $800 but maintained a “buy” rating, implying approximately 28.5% upside from the reported $622.73 share price.
• Analyst sentiment remains broadly positive, with 15 buy ratings and 12 hold ratings; the consensus rating is “Moderate Buy” with an average price target of $920.83.
• Caterpillar’s latest quarter showed strong momentum: adjusted EPS of $7.20 beat estimates and revenue rose 17% year over year to $20.68 billion, although revenue narrowly missed expectations and the stock remains well below its 50- and 200-day moving averages.

Caterpillar (NYSE:CAT - Get Free Report) had its price objective decreased by analysts at Citigroup from $950.00 to $800.00 in a research note issued on Friday, Benzinga reports. The firm currently has a "buy" rating on the industrial products company's stock. Citigroup's target price suggests a potential upside of 28.47% from the company's current price.

Other analysts have also issued research reports about the company. Weiss Ratings lowered Caterpillar from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday. Freedom Broker raised Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 target price on the stock in a research report on Thursday, September 10th. Needham & Company LLC set a $980.00 price target on shares of Caterpillar in a research report on Thursday, September 10th. Erste Group Bank cut shares of Caterpillar from a "buy" rating to a "hold" rating in a research note on Monday, July 27th. Finally, Truist Financial reissued a "buy" rating and issued a $1,027.00 price objective (down from $1,100.00) on shares of Caterpillar in a report on Friday. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have issued 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 $920.83.

Caterpillar Stock Performance

Caterpillar stock traded down $24.66 during midday trading on Friday, reaching $622.73. 5,139,279 shares of the company traded hands, compared to its average volume of 2,858,968. The firm has a market capitalization of $286.25 billion, a price-to-earnings ratio of 26.80, a price-to-earnings-growth ratio of 1.22 and a beta of 1.58. The business has a 50 day moving average of $787.07 and a two-hundred day moving average of $807.56. Caterpillar has a 12 month low of $537.08 and a 12 month high of $1,073.46. 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 (NYSE:CAT - Get Free Report) last posted its earnings results 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. The business had revenue of $20.68 billion during the quarter, compared to the consensus estimate of $20.76 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm's revenue was up 17.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.95 EPS. As a group, research analysts predict that Caterpillar will post 27.74 earnings per share for the current year.

Insiders Place Their Bets

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the company's stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.33% of the stock is owned by corporate insiders.

Institutional Trading of Caterpillar

Several institutional investors and hedge funds have recently modified their holdings of the company. MFG Investments LLC purchased a new position in shares of Caterpillar in the 3rd quarter worth about $308,000. Provenance Wealth Advisors LLC grew its holdings in shares of Caterpillar by 40.1% during the 3rd quarter. Provenance Wealth Advisors LLC now owns 4,488 shares of the industrial products company's stock worth $3,639,000 after purchasing an additional 1,285 shares during the period. TrinityBridge Ltd increased its position in Caterpillar by 3.6% during the 3rd quarter. TrinityBridge Ltd now owns 19,626 shares of the industrial products company's stock worth $15,917,000 after purchasing an additional 689 shares in the last quarter. Lyell Wealth Management LP increased its position in Caterpillar by 0.9% during the 3rd quarter. Lyell Wealth Management LP now owns 36,423 shares of the industrial products company's stock worth $29,532,000 after purchasing an additional 320 shares in the last quarter. Finally, Associated Banc Corp purchased a new position in Caterpillar in the third quarter valued at approximately $30,050,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar reported third-quarter sales and revenue of approximately $20.7 billion, up 17% year over year, while adjusted earnings per share of $7.20 exceeded the roughly $7.06 consensus estimate. Higher volume and pricing lifted margins, and the company deployed $2 billion toward dividends and share repurchases. Caterpillar Reports Third-Quarter 2026 Results
• Positive Sentiment: Demand tied to data-center infrastructure remains a major growth driver. Power-generation sales rose about 30%, and Caterpillar highlighted a record backlog of roughly $78 billion extending into 2029–2030, supporting expectations for continued revenue and margin growth. Caterpillar Posts Highest Sales Quarter Ever
• Neutral Sentiment: Several analysts still see upside from current levels. Truist reaffirmed its “buy” rating with a $1,027 target, while RBC assigned “sector perform” and Morgan Stanley assigned “equal weight.” However, both RBC and Morgan Stanley sharply reduced their targets to $722 and $675, respectively, signaling diminished confidence in near-term appreciation.
• Negative Sentiment: Revenue of $20.68 billion narrowly missed expectations of $20.76 billion, and management maintained its full-year sales outlook instead of raising it. The company expects only moderate fourth-quarter revenue growth, disappointing investors who had priced in a stronger benefit from AI-related infrastructure spending. Caterpillar Sales Jump, but Wall Street Wanted More
• Negative Sentiment: Rising tariff costs, higher inventories, extended backlog-conversion timelines and Caterpillar’s elevated valuation are adding pressure. Investors appear concerned that much of the AI-power opportunity is already reflected in the share price, making even strong results insufficient without a more optimistic forecast.

Caterpillar Company Profile

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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