Caterpillar Inc. (NYSE:CAT) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Caterpillar has a consensus analyst rating of “Moderate Buy” from 25 firms, with 15 buy ratings and one strong buy. The average 12-month price target is about $970.81.
• The company posted a strong quarterly beat, reporting EPS of $5.54 versus estimates of $4.65 and revenue of $17.41 billion versus expectations of $16.53 billion. Revenue rose 22.2% year over year.
• Caterpillar also raised its quarterly dividend to $1.63 per share from $1.51, while recent insider sales and mixed commentary have kept some caution around valuation and momentum.

Caterpillar Inc. (NYSE:CAT - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twenty-five ratings firms that are covering the firm, MarketBeat reports. Nine analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $970.8095.

Several research firms have recently commented on CAT. Argus increased their price target on shares of Caterpillar from $820.00 to $990.00 and gave the company a "buy" rating in a research report on Tuesday, May 5th. Morgan Stanley set a $915.00 target price on Caterpillar and gave the company an "equal weight" rating in a report on Friday, May 1st. UBS Group reissued a "neutral" rating and set a $900.00 price target on shares of Caterpillar in a research report on Tuesday, June 2nd. Zacks Research upgraded Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 8th. Finally, Daiwa Securities Group increased their price objective on Caterpillar from $790.00 to $900.00 and gave the company a "neutral" rating in a research note on Friday, May 1st.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is being highlighted as a way to gain exposure to the AI buildout, especially through demand tied to data center construction, which is helping bolster investor optimism. These Dividend Paying Stocks Offer Strong Exposure to AI Trends
• Positive Sentiment: Analyst/commentary pieces continue to frame Caterpillar as a stock with strong momentum and relative outperformance, supporting the bullish case for CAT. CAT Outperforms NVDA & Tech Sector, AI Data Center Demand Powers Growth
• Positive Sentiment: News that Caterpillar is opening an engineering design centre adds to the company’s investment and expansion story, which can be supportive for long-term growth expectations. Caterpillar Inc. opens engineering design centre
• Positive Sentiment: Reports of a multimillion-dollar global headquarters expansion in Las Colinas suggest continued capital investment and confidence in the business outlook. Caterpillar digs into new $34M HQ in Las Colinas
• Neutral Sentiment: Market commentary notes that Caterpillar remains a popular industrial stock to watch, but these list-style articles do not provide a clear new catalyst. Industrial Stocks To Consider - July 9th
• Neutral Sentiment: Another feature discusses Caterpillar among “calls of the day,” indicating ongoing trader attention rather than a specific fundamental update. Calls of the day: AbbVie, Caterpillar, Marriott, Lamar Advertising and PepsiCo
• Negative Sentiment: Some coverage says CAT has dipped while the broader market rose, and other commentary warns the stock may be losing momentum as investors weigh valuation, tariffs, and execution risks. Caterpillar (CAT) Stock Dips While Market Gains: Key Facts
• Negative Sentiment: One bearish note suggests the AI rally may be fading, with valuation concerns making investors more cautious about further upside. CAT Stock Heads For Second Weekly Loss: Is Caterpillar's AI Rally Fading?

Insider Buying and Selling at Caterpillar

In other news, CFO Andrew R. J. Bonfield sold 15,674 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the transaction, the chief financial officer owned 52,935 shares of the company's stock, valued at $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Denise C. Johnson sold 12,605 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the sale, the insider owned 49,825 shares in the company, valued at approximately $45,236,615.75. This trade represents a 20.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 95,773 shares of company stock valued at $87,642,635. Corporate insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

A number of hedge funds and other institutional investors have recently made changes to their positions in CAT. Axxcess Wealth Management LLC raised its holdings in Caterpillar by 2.8% in the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock valued at $12,844,000 after buying an additional 604 shares during the period. Juno Financial Group LLC acquired a new position in Caterpillar during the fourth quarter valued at approximately $877,000. DSG Capital Advisors LLC purchased a new stake in Caterpillar during the first quarter worth approximately $1,226,000. Cornerstone Planning LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth $4,517,000. Finally, Gotham Asset Management LLC raised its stake in shares of Caterpillar by 19.1% in the 3rd quarter. Gotham Asset Management LLC now owns 116,589 shares of the industrial products company's stock valued at $55,630,000 after acquiring an additional 18,676 shares during the period. Hedge funds and other institutional investors own 70.98% of the company's stock.

Caterpillar Price Performance

Caterpillar stock opened at $952.42 on Monday. Caterpillar has a 52 week low of $401.70 and a 52 week high of $1,073.46. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. The firm's 50-day simple moving average is $930.83 and its 200 day simple moving average is $783.49. The firm has a market capitalization of $438.68 billion, a PE ratio of 47.41, a P/E/G ratio of 1.88 and a beta of 1.57.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. The firm had revenue of $17.41 billion for the quarter, compared to analysts' expectations of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The firm's revenue was up 22.2% on a year-over-year basis. During the same period in the prior year, the company earned $4.25 EPS. On average, equities research analysts predict that Caterpillar will post 24.71 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be paid a dividend of $1.63 per share. The ex-dividend date of this dividend is Monday, July 20th. This represents a $6.52 annualized dividend and a dividend yield of 0.7%. This is an increase from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's dividend payout ratio is 30.06%.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.