Caterpillar (NYSE:CAT) Trading Up 1.7% - Still a Buy?

Key Points

• Caterpillar shares rose 1.7% to $828.90, while the company’s latest quarterly results significantly exceeded expectations: EPS was $8.17 versus estimates of $6.22, and revenue increased 23.7% year over year to $20.54 billion.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $995.52. Zacks raised several earnings forecasts, and Caterpillar received a $392 million tariff refund while increasing its quarterly dividend to $1.63 per share.
• Risks include elevated stock volatility, a lower near-term Q4 EPS estimate, and potential restrictions on AI data-center power demand that could weaken growth in Caterpillar’s power-generation business.

Caterpillar Inc. (NYSE:CAT - Get Free Report)'s stock price rose 1.7% during trading on Friday . The company traded as high as $832.00 and last traded at $828.90. Approximately 2,434,610 shares traded hands during trading, a decline of 16% from the average daily volume of 2,914,494 shares. The stock had previously closed at $815.39.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Higher full-year earnings forecasts: Zacks Research raised its FY2026 EPS estimate to $26.55 from $24.51 and its Q2 2027 estimate to $7.90 from $7.17. Zacks maintained a “Strong Buy” rating, signaling confidence in Caterpillar’s earnings trajectory. Zacks Research Forecasts Stronger Earnings for Caterpillar
• Positive Sentiment: $392 million tariff refund: Caterpillar received a significant refund as duty costs declined. The benefit partially offsets approximately $400 million in tariff expenses incurred during the quarter ended June 30 and could support near-term profitability and cash flow. Caterpillar bags $392M tariff refund as duty costs shrink
• Positive Sentiment: Constructive market backdrop: Expectations for continued S&P 500 strength, resilient earnings growth and potential AI-related capital spending are supportive for industrial companies such as Caterpillar. 5 Reasons the S&P 500 Could Keep Rallying Through Year-End
• Neutral Sentiment: High volatility remains a trading risk: Options activity indicates Caterpillar’s stock could experience unusually large moves in either direction, increasing uncertainty despite favorable fundamental projections. Caterpillar Stock Is Priced To Swing Hundreds Of Dollars Either Way
• Negative Sentiment: AI data-center backlash: Proposed restrictions and political resistance to AI-related power demand in Texas and New York could delay or reduce data-center construction. That creates a risk for Caterpillar’s power-generation and related equipment demand, prompting investors to reassess the company’s growth outlook. What Is Caterpillar Facing As AI Data Center Backlash Grows?
• Negative Sentiment: Near-term estimate reduction: Zacks lowered its Q4 2026 EPS forecast to $6.47 from $6.61, suggesting some caution around the next quarterly results even though its full-year and longer-term estimates improved. Caterpillar analyst estimates

Wall Street Analyst Weigh In

A number of brokerages have weighed in on CAT. Wells Fargo & Company boosted their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 23rd. Bank of America increased their price target on shares of Caterpillar from $930.00 to $989.00 and gave the company a "buy" rating in a research note on Friday, May 1st. UBS Group raised their price target on shares of Caterpillar from $900.00 to $925.00 and gave the company a "neutral" rating in a report on Wednesday, August 5th. Robert W. Baird set a $970.00 price objective on shares of Caterpillar in a research report on Wednesday, August 5th. Finally, Oppenheimer reaffirmed an "outperform" rating and set a $1,118.00 price objective on shares of Caterpillar in a report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat.com, Caterpillar has a consensus rating of "Moderate Buy" and a consensus price target of $995.52.

Caterpillar Trading Up 1.7%

The company has a market capitalization of $381.02 billion, a price-to-earnings ratio of 35.67, a P/E/G ratio of 1.43 and a beta of 1.60. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The business's 50-day simple moving average is $910.49 and its 200-day simple moving average is $833.16.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to analysts' expectations of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. Caterpillar's revenue was up 23.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $4.72 EPS. On average, research analysts expect that Caterpillar Inc. will post 27.14 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th were issued a dividend of $1.63 per share. The ex-dividend date of this dividend was Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. This is a boost from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's dividend payout ratio (DPR) is presently 28.06%.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Stonebridge Financial Group LLC lifted its holdings in Caterpillar by 0.7% during the 2nd quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company's stock valued at $1,741,000 after purchasing an additional 11 shares during the last quarter. Inspirion Wealth Advisors LLC increased its holdings in shares of Caterpillar by 1.2% during the second quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company's stock worth $936,000 after buying an additional 11 shares in the last quarter. Bell Bank raised its stake in shares of Caterpillar by 0.6% in the second quarter. Bell Bank now owns 1,865 shares of the industrial products company's stock valued at $1,986,000 after acquiring an additional 11 shares during the last quarter. Cornerstone Advisory LLC boosted its holdings 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. Finally, Advisory Resource Group boosted its holdings in shares of Caterpillar by 0.8% in the 4th quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company's stock worth $935,000 after acquiring an additional 13 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

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.

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