Caterpillar (NYSE:CAT) Stock Price Expected to Rise, Rothschild & Co Redburn Analyst Says

Key Points

• Rothschild & Co Redburn raised Caterpillar’s price target from $700 to $950 while keeping a neutral rating, implying about 3.9% upside from the previous close.
• Other analysts have also turned more constructive on CAT, with several firms lifting targets and the stock now carrying an average Moderate Buy rating and a consensus price target of $923.14.
• Caterpillar reported strong quarterly results, beating EPS and revenue estimates, while recent insider selling and institutional buying added mixed signals around the stock.

Caterpillar (NYSE:CAT - Get Free Report) had its price target hoisted by stock analysts at Rothschild & Co Redburn from $700.00 to $950.00 in a research note issued to investors on Thursday,MarketScreener reports. The firm presently has a "neutral" rating on the industrial products company's stock. Rothschild & Co Redburn's price target suggests a potential upside of 3.88% from the company's previous close.

CAT has been the topic of a number of other research reports. JPMorgan Chase & Co. boosted their price objective on Caterpillar from $860.00 to $1,125.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. Wells Fargo & Company raised their target price on Caterpillar from $960.00 to $1,050.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Daiwa Securities Group boosted their price target on Caterpillar from $790.00 to $900.00 and gave the stock a "neutral" rating in a research report on Friday, May 1st. HSBC upped their price target on Caterpillar from $850.00 to $1,100.00 in a report on Tuesday, May 5th. Finally, Sanford C. Bernstein lifted their price objective on shares of Caterpillar from $769.00 to $879.00 and gave the company a "market perform" rating in a research note on Friday, May 1st. Sixteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $923.14.

Caterpillar Price Performance

CAT opened at $914.50 on Thursday. Caterpillar has a 52-week low of $336.24 and a 52-week high of $931.35. The company has a 50 day moving average of $768.15 and a two-hundred day moving average of $675.78. The company has a market cap of $421.21 billion, a P/E ratio of 45.27, a P/E/G ratio of 1.83 and a beta of 1.63. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results 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. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business had revenue of $17.42 billion for the quarter, compared to the consensus estimate of $16.53 billion. During the same quarter last year, the firm posted $4.25 EPS. The business's revenue for the quarter was up 22.2% compared to the same quarter last year. On average, analysts expect that Caterpillar will post 24.21 earnings per share for the current year.

Insider Activity at Caterpillar

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the company's stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the transaction, the chief financial officer directly owned 52,935 shares of the company's stock, valued at $48,631,913.85. This represents a 22.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, insider Jason Kaiser sold 5,642 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the sale, the insider directly owned 9,594 shares of the company's stock, valued at $8,471,789.82. The trade was a 37.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 92,017 shares of company stock worth $81,982,867 over the last ninety days. Company insiders own 0.33% of the company's stock.

Hedge Funds Weigh In On Caterpillar

Several large investors have recently modified their holdings of CAT. Cornerstone Advisory LLC grew its position in shares of Caterpillar by 0.7% in the 1st quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company's stock worth $1,288,000 after acquiring an additional 12 shares in the last quarter. Advisory Resource Group boosted its holdings in Caterpillar by 0.8% in the fourth quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company's stock worth $935,000 after purchasing an additional 13 shares during the period. Sunbeam Capital Management LLC boosted its holdings in Caterpillar by 1.1% in the first quarter. Sunbeam Capital Management LLC now owns 1,164 shares of the industrial products company's stock worth $825,000 after purchasing an additional 13 shares during the period. Brandywine Oak Private Wealth LLC increased its stake in Caterpillar by 2.6% during the first quarter. Brandywine Oak Private Wealth LLC now owns 506 shares of the industrial products company's stock valued at $358,000 after purchasing an additional 13 shares during the last quarter. Finally, Sylvest Advisors LLC raised its holdings in shares of Caterpillar by 3.6% during the first quarter. Sylvest Advisors LLC now owns 377 shares of the industrial products company's stock worth $267,000 after purchasing an additional 13 shares during the period. Institutional investors own 70.98% of the company's stock.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar announced plans to add 600 jobs at its Sanford, North Carolina plant to support production of compact track loaders, signaling continued manufacturing expansion and demand for its equipment. Caterpillar hiring 600 workers at Sanford plant
• Positive Sentiment: Recent commentary from analysts and market observers has reinforced the bullish case for CAT, citing strong demand, AI/data-center power needs, oil and infrastructure exposure, and raised price targets. Argus Lifts PT on Caterpillar Inc. (CAT), Expects Strong Demand
• Positive Sentiment: Several articles highlighted Caterpillar as a beneficiary of AI-related power demand, with investors viewing its engines and power-generation products as part of the “time-to-power” solution for data centers. Caterpillar: Solving AI's Time-To-Power Bottleneck
• Neutral Sentiment: Jim Cramer reiterated a positive view on Caterpillar, but the coverage mainly echoed existing optimism rather than adding new company-specific news. Jim Cramer Just Called Caterpillar a Buy
• Negative Sentiment: Insider Anthony Fassino sold 16,283 shares, which may create a slight headwind for sentiment even though the sale was small relative to his remaining holdings. Anthony Fassino Sells 16,283 Shares of Caterpillar NYSE: CAT 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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