Caterpillar (NYSE:CAT) Shares Up 2.9% - Still a Buy?

Key Points

• Caterpillar shares rose 2.9% in Tuesday trading, with volume running above average as investors reacted positively to the stock’s recent momentum.
• Wall Street remains broadly constructive: Caterpillar’s consensus rating is still Moderate Buy, and several firms recently raised price targets, lifting the estimated fair value to $970.37.
• The company also reported strong fundamentals last quarter, beating expectations on EPS and revenue, and it recently increased its quarterly dividend to $1.63 per share.

Caterpillar Inc. (NYSE:CAT - Get Free Report) shares traded up 2.9% during mid-day trading on Tuesday . The stock traded as high as $898.00 and last traded at $889.3990. 3,151,426 shares were traded during trading, an increase of 9% from the average daily volume of 2,890,406 shares. The stock had previously closed at $864.30.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Wall Street’s average brokerage recommendation for Caterpillar remains at Buy, reinforcing the view that analysts are still broadly constructive on the stock. Is It Worth Investing in Caterpillar (CAT) Based on Wall Street's Bullish Views?
• Positive Sentiment: Caterpillar’s fair value estimate was raised from $913.29 to $970.37 after analysts lifted price targets, reflecting optimism around construction, energy, data center, and infrastructure demand. Caterpillar (CAT) Stock Fair Value Edges Higher After Analysts Lift Targets
• Positive Sentiment: The stock also appeared to benefit from a broader market move, with Caterpillar highlighted as one of the Dow names rising more than 3% during a strong session for major U.S. indexes. Dow Rises 500 Points. It’s Not a Broad Rally.
• Neutral Sentiment: Caterpillar confirmed it will report second-quarter 2026 results on August 4, which keeps investors focused on upcoming earnings but does not by itself change fundamentals. Caterpillar Inc. to Announce Second-Quarter 2026 Financial Results on August 4
• Neutral Sentiment: Additional articles largely repeated the same analyst-rating theme, which may reinforce sentiment but are unlikely to be a major standalone driver. Is It Worth Investing in Caterpillar (CAT) Based on Wall Street's Bullish Views?

Wall Street Analyst Weigh In

Several research firms have weighed in on CAT. Evercore reiterated an "outperform" rating and set a $1,103.00 target price on shares of Caterpillar in a research note on Monday, May 11th. Truist Financial lifted their price target on shares of Caterpillar from $1,043.00 to $1,218.00 and gave the company a "buy" rating in a report on Thursday, July 2nd. Wall Street Zen raised shares of Caterpillar from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Robert W. Baird increased their price objective on shares of Caterpillar from $1,165.00 to $1,200.00 and gave the stock an "outperform" rating in a research note on Friday, June 26th. Finally, Wells Fargo & Company raised their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a report on Tuesday, June 23rd. Fifteen investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, Caterpillar has an average rating of "Moderate Buy" and a consensus price target of $980.57.

Caterpillar Price Performance

The company has a market capitalization of $409.65 billion, a P/E ratio of 44.27, a PEG ratio of 1.72 and a beta of 1.57. 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 business has a 50 day simple moving average of $930.07 and a 200-day simple moving average of $796.99.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping the consensus estimate of $4.65 by $0.89. The business had revenue of $17.41 billion during the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The company's quarterly revenue was up 22.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $4.25 earnings per share. Analysts predict that Caterpillar Inc. will post 24.87 EPS for the current fiscal year.

Caterpillar Increases Dividend

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

Insider Buying and Selling at Caterpillar

In related news, insider Anthony D. Fassino sold 16,283 shares of the stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $916.80, for a total value of $14,928,254.40. Following the completion of the transaction, the insider directly owned 46,041 shares of the company's stock, valued at $42,210,388.80. This represents a 26.13% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the firm'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 sale, the chief financial officer owned 52,935 shares in the company, valued at approximately $48,631,913.85. This represents a 22.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 95,773 shares of company stock valued at $87,642,635. 0.33% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Caterpillar

Institutional investors have recently bought and sold shares of the stock. Merit Financial Group LLC increased its stake in Caterpillar by 5.9% during the 2nd quarter. Merit Financial Group LLC now owns 48,984 shares of the industrial products company's stock valued at $52,164,000 after buying an additional 2,714 shares during the period. Diversified Trust Co. lifted its stake in shares of Caterpillar by 25.4% in the 2nd quarter. Diversified Trust Co. now owns 14,725 shares of the industrial products company's stock worth $15,681,000 after acquiring an additional 2,986 shares during the period. Rosenberg Matthew Hamilton boosted its holdings in shares of Caterpillar by 5.6% in the second quarter. Rosenberg Matthew Hamilton now owns 1,685 shares of the industrial products company's stock valued at $1,794,000 after acquiring an additional 89 shares in the last quarter. SLT Holdings LLC acquired a new position in shares of Caterpillar during the second quarter valued at approximately $272,000. Finally, GRIMES & Co WEALTH MANAGEMENT LLC increased its stake in shares of Caterpillar by 1.2% during the second quarter. GRIMES & Co WEALTH MANAGEMENT LLC now owns 5,291 shares of the industrial products company's stock valued at $5,635,000 after acquiring an additional 62 shares during the period. Institutional investors and hedge funds own 70.98% of the company's stock.

Caterpillar Company Profile

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.

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