Caterpillar (NYSE:CAT) Stock Price Target Cut by Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Caterpillar’s price target from $897 to $722 while maintaining a “sector perform” rating, implying roughly 14% upside from the prior close.
• Caterpillar shares fell 2.4% to $631.90, while analyst sentiment remained moderately bullish overall, with 15 Buy ratings, 12 Holds and a consensus price target of $937.08.
• The company exceeded quarterly EPS expectations with $7.20 per share and reported 17.3% year-over-year revenue growth, but revenue slightly missed forecasts and management retained its existing outlook amid concerns about inventories, tariffs and backlog conversion.

Caterpillar (NYSE:CAT - Get Free Report) had its target price dropped by research analysts at Royal Bank Of Canada from $897.00 to $722.00 in a research note issued on Friday, Benzinga reports. The brokerage currently has a "sector perform" rating on the industrial products company's stock. Royal Bank Of Canada's price target indicates a potential upside of 14.26% from the company's previous close.

Several other equities analysts also recently weighed in on the company. Weiss Ratings downgraded Caterpillar from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday. Erste Group Bank downgraded Caterpillar from a "buy" rating to a "hold" rating in a research note on Monday, July 27th. Truist Financial reiterated a "buy" rating and issued a $1,027.00 price target (down from $1,100.00) on shares of Caterpillar in a research report on Friday. Zacks Research lowered Caterpillar from a "strong-buy" rating to a "hold" rating in a report on Monday, October 5th. Finally, Oppenheimer restated an "outperform" rating and set a $1,009.00 price objective on shares of Caterpillar in a research report on Thursday. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $937.08.

Caterpillar Trading Down 2.4%

NYSE CAT traded down $15.49 during trading on Friday, hitting $631.90. The company had a trading volume of 1,912,802 shares, compared to its average volume of 2,842,631. Caterpillar has a one year low of $537.08 and a one year high of $1,073.46. The company has a market cap of $290.47 billion, a price-to-earnings ratio of 27.20, a price-to-earnings-growth ratio of 1.22 and a beta of 1.58. The company's fifty day moving average is $787.07 and its 200-day moving average is $807.56. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, beating analysts' consensus estimates of $7.06 by $0.14. The company had revenue of $20.68 billion during the quarter, compared to analysts' expectations of $20.76 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The firm's revenue for the quarter was up 17.3% compared to the same quarter last year. During the same quarter last year, the business posted $4.95 EPS. On average, sell-side analysts predict that Caterpillar will post 27.74 earnings per share for the current year.

Insider Transactions at Caterpillar

In other 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 completion of the sale, the chief executive officer directly owned 34,555 shares of the company's stock, valued at $27,954,303.90. This trade represents a 48.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.33% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Caterpillar

A number of large investors have recently bought and sold shares of the business. Stonebridge Financial Group LLC grew its stake in Caterpillar by 0.7% during the 2nd quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company's stock valued at $1,741,000 after acquiring an additional 11 shares in the last quarter. Inspirion Wealth Advisors LLC increased its holdings in Caterpillar by 1.2% in the 2nd quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company's stock valued at $936,000 after purchasing an additional 11 shares during the last quarter. Bell Bank increased its stake in Caterpillar by 0.6% during the second quarter. Bell Bank now owns 1,865 shares of the industrial products company's stock worth $1,986,000 after purchasing an additional 11 shares during the period. Cornerstone Advisory LLC boosted its position in Caterpillar by 0.7% in the 1st quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company's stock valued at $1,288,000 after buying an additional 12 shares during the period. Finally, Harbor Investment Advisory LLC grew its stake in Caterpillar by 0.6% during the 2nd quarter. Harbor Investment Advisory LLC now owns 2,057 shares of the industrial products company's stock worth $2,190,000 after purchasing an additional 13 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Third-quarter sales and revenues rose 17% year over year to approximately $20.7 billion, while adjusted profit per share of $7.20 exceeded analysts’ expectations. Higher volume, pricing and operating leverage lifted profitability. Caterpillar Reports Third-Quarter 2026 Results
• Positive Sentiment: Demand tied to data centers remains a key growth driver: power-generation sales increased about 30%, and Caterpillar reported a record backlog of roughly $78 billion extending into 2029–2030. Management also returned $2 billion through share repurchases and dividends during the quarter. Caterpillar posts highest sales quarter ever
• Neutral Sentiment: Some analysts see substantial long-term upside because the backlog could support revenue growth and margin expansion, with consensus estimates calling for approximately 17.8% revenue growth in fiscal 2026 and 10.8% in fiscal 2027. However, the stock’s valuation leaves limited room for execution setbacks.
• Negative Sentiment: Revenue of $20.68 billion came in below the approximately $20.76 billion consensus estimate, and quarterly growth slowed from 24% in the prior quarter. Investors had expected Caterpillar to raise its annual outlook, but management maintained its existing forecast and characterized fourth-quarter revenue growth as moderate. Caterpillar Sales Jump, But Wall Street Wanted More
• Negative Sentiment: Rising inventories, tariff-related costs and concerns about the pace of backlog conversion are adding pressure to the outlook. After a major prior rally, investors appear to be taking profits in AI-linked industrial stocks and demanding greater valuation support. Reports also indicate substantially more insider selling than buying in recent months.

About Caterpillar

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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