Caterpillar (NYSE:CAT) Upgraded at Freedom Broker

Key Points

• Freedom Broker upgraded Caterpillar to “buy” from “hold” and set a $980 price target, implying approximately 20% upside. Analysts overall rate the stock a “Moderate Buy,” with an average target of $994.17.
• Caterpillar reported a strong quarter, with earnings of $8.17 per share versus the $6.22 consensus estimate and revenue of $20.54 billion versus $19.34 billion expected; revenue increased 23.7% year over year.
• Despite positive earnings momentum and potential growth from AI and automation initiatives, valuation and interest-rate risks remain. The CEO also sold roughly $26.2 million of shares, while insiders own only 0.33% of the company.

Caterpillar (NYSE:CAT - Get Free Report) was upgraded by equities researchers at Freedom Broker from a "hold" rating to a "buy" rating in a research report issued on Thursday, Benzinga reports. The firm presently has a $980.00 target price on the industrial products company's stock. Freedom Broker's price target indicates a potential upside of 20.04% from the company's current price.

Other research analysts have also issued research reports about the company. Barclays increased their price target on Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. Zacks Research raised Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 12th. Erste Group Bank cut Caterpillar from a "buy" rating to a "hold" rating in a report on Monday, July 27th. Wells Fargo & Company lifted their price target on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research report on Tuesday, June 23rd. Finally, Needham & Company LLC set a $980.00 price objective on shares of Caterpillar in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, Caterpillar presently has a consensus rating of "Moderate Buy" and an average price target of $994.17.

Caterpillar Stock Down 0.7%

Caterpillar stock opened at $816.41 on Thursday. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The company has a market capitalization of $375.28 billion, a PE ratio of 35.13, a PEG ratio of 1.43 and a beta of 1.60. The firm's fifty day moving average is $859.73 and its 200 day moving average is $840.13. Caterpillar has a 12-month low of $419.50 and a 12-month high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating the consensus estimate of $6.22 by $1.95. The firm had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business's revenue was up 23.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $4.72 earnings per share. As a group, sell-side analysts predict that Caterpillar will post 27.37 EPS for the current fiscal year.

Insider Buying and Selling at Caterpillar

In other news, CEO Joseph E. Creed sold 32,401 shares of the business'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 transaction, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. The trade was a 48.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.33% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. California State Teachers Retirement System grew its position in Caterpillar by 105,696.1% during the second quarter. California State Teachers Retirement System now owns 747,331,911 shares of the industrial products company's stock valued at $795,833,752,000 after buying an additional 746,625,522 shares during the period. BlackRock Inc. bought a new stake in Caterpillar in the second quarter worth about $40,457,153,000. State Street Corp boosted its stake in Caterpillar by 1.1% in the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock valued at $20,273,039,000 after acquiring an additional 385,204 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Caterpillar by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company's stock valued at $6,072,572,000 after acquiring an additional 94,524 shares during the period. Finally, Fisher Asset Management LLC increased its stake in shares of Caterpillar by 0.6% during the 4th quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock worth $5,438,408,000 after purchasing an additional 54,069 shares during 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: Analysts raised earnings estimates across multiple periods. Zacks Research increased its forecasts for Q3 2026, FY2026, FY2027 and FY2028, including FY2027 EPS from $30.14 to $31.43 and FY2028 EPS from $35.97 to $36.64. Zacks maintained a “Strong Buy” rating, signaling improved expectations for Caterpillar’s earnings trajectory. Caterpillar analyst estimate updates
• Positive Sentiment: AI and automation could create a new growth avenue. Caterpillar’s collaboration with FieldAI is intended to advance physical AI, autonomy and robotics for construction and other heavy-equipment applications. The partnership supports the company’s strategy to improve job-site safety, efficiency and equipment productivity. Caterpillar FieldAI partnership
• Positive Sentiment: Industrial-sector momentum is supporting the Caterpillar story. Coverage points to lean inventories and steady U.S. manufacturing activity as favorable conditions for Caterpillar. Piper Sandler also identified CAT and other industrial companies as potential beneficiaries of a rotation away from highly valued AI leaders and toward companies with tangible earnings and infrastructure exposure. Piper Sandler industrial rotation analysis
• Neutral Sentiment: CAT has significantly outperformed many industrial stocks. Articles comparing Caterpillar with Gorman-Rupp and the broader industrial-products sector highlight its strong year-to-date performance, reinforcing investor interest but also raising expectations for continued execution. Caterpillar industrial stock comparison
• Negative Sentiment: Valuation and interest-rate risk remain concerns. CAT’s roughly 35-times earnings valuation leaves less room for disappointment after its substantial annual advance. Rising 10-year Treasury yields—particularly a move toward 5%—could pressure expensive equities and increase financing costs for construction and mining customers. Caterpillar valuation analysis

About Caterpillar

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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