DA Davidson Issues Pessimistic Forecast for Caterpillar (NYSE:CAT) Stock Price

Key Points

• DA Davidson cut Caterpillar’s price target from $882 to $685 and maintained a “neutral” rating, implying roughly 10% upside from the stock’s $622.73 opening price.
• Analyst sentiment is mixed: Caterpillar has a “Moderate Buy” consensus rating and an average target of $905.75, although several firms—including UBS, JPMorgan, RBC and Citigroup—have recently lowered their targets.
• Caterpillar delivered a quarterly earnings beat, with EPS of $7.20 versus the $7.06 consensus and revenue up 17.3% year over year to $20.68 billion. However, CEO Joseph Creed sold about $26.2 million in shares, adding a notable insider-selling signal.

Caterpillar (NYSE:CAT - Get Free Report) had its price target lowered by research analysts at DA Davidson from $882.00 to $685.00 in a research note issued on Monday, Benzinga reports. The brokerage presently has a "neutral" rating on the industrial products company's stock. DA Davidson's price objective would suggest a potential upside of 10.00% from the company's current price.

Several other research firms also recently weighed in on CAT. Oppenheimer restated an "outperform" rating and issued a $1,009.00 price target on shares of Caterpillar in a research note on Thursday. Zacks Research cut Caterpillar from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. JPMorgan Chase & Co. reduced their price target on Caterpillar from $1,100.00 to $1,000.00 and set an "overweight" rating for the company in a report on Friday. Robert W. Baird set a $970.00 price target on shares of Caterpillar in a research note on Wednesday, August 5th. Finally, UBS Group cut their price objective on shares of Caterpillar from $925.00 to $750.00 and set a "neutral" rating on the stock in a research report on Monday, October 26th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $905.75.

Caterpillar Stock Down 0.0%

NYSE:CAT opened at $622.73 on Monday. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.42 and a quick ratio of 0.88. The firm's 50-day moving average price is $783.25 and its 200-day moving average price is $807.52. The company has a market capitalization of $286.25 billion, a PE ratio of 24.43, a P/E/G ratio of 1.07 and a beta of 1.65. Caterpillar has a 1-year low of $537.08 and a 1-year high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, topping the consensus estimate of $7.06 by $0.14. The business had revenue of $20.68 billion for the quarter, compared to analyst estimates of $20.76 billion. Caterpillar had a net margin of 15.21% and a return on equity of 59.87%. Caterpillar's quarterly revenue was up 17.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.95 earnings per share. On average, equities analysts predict that Caterpillar will post 27.75 EPS for the current fiscal year.

Insider Activity

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

Institutional Investors Weigh In On Caterpillar

Several large investors have recently bought and sold shares of CAT. Decker Retirement Planning Inc. boosted its holdings in shares of Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock valued at $29,000 after acquiring an additional 22 shares during the last quarter. Matrix Trust Co boosted its stake in shares of Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock worth $33,000 after buying an additional 15 shares during the last quarter. Axiom Investment Management LLC bought a new stake in shares of Caterpillar in the second quarter worth $36,000. PFS Partners LLC increased its position in Caterpillar by 1,750.0% during the third quarter. PFS Partners LLC now owns 37 shares of the industrial products company's stock valued at $30,000 after acquiring an additional 35 shares during the last quarter. Finally, Tacita Capital Inc bought a new position in Caterpillar in the second quarter valued at about $47,000. 70.98% of the stock is currently owned by institutional investors.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s third-quarter revenue increased 17.3% year over year to $20.68 billion, while adjusted earnings of $7.20 per share exceeded consensus by $0.14. The results reinforce the company’s earnings momentum. CAT Q3 deep dive: capacity expansion and backlog growth shape outlook amid market caution
• Positive Sentiment: Third-quarter order backlog reached a record $78 billion, extending delivery timelines well into the next decade. Power-generation sales to end users rose 75%, helped by demand from data centers, supporting Caterpillar’s longer-term growth outlook. Caterpillar: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Truist reiterated a “Buy” rating. A separate global-bank analysis argued that the market may be overlooking Caterpillar’s backlog and secular data-center power demand, with substantial upside possible if execution remains strong. Caterpillar Crashed By 25% Over 6 Months But This Global Banking Giant Says 85% Gains Will Come
• Neutral Sentiment: Truist reduced its price target to $1,027 from $1,100 while retaining its Buy rating. The lower target reflects greater caution but still implies significant potential appreciation from recent trading levels. Could Caterpillar Actually Climb 65% After Its Earnings Slide? Or Is Truist Totally Wrong?
• Negative Sentiment: Royal Bank of Canada and Citigroup trimmed their Caterpillar price targets, adding to investor concerns that valuation, cyclical demand and execution risks may limit near-term gains. RBC price target reduction Citi price target trim
• Negative Sentiment: Morgan Stanley and JPMorgan issued pessimistic forecasts, while an analyst downgrade recently sent CAT shares lower. The cluster of cautious calls is likely weighing on the stock despite the earnings beat. Morgan Stanley forecast JPMorgan 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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