Caterpillar (NYSE:CAT) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Caterpillar from a "hold" to a "buy" rating, joining a wave of recent analyst bullishness on the stock.
• Caterpillar beat Q1 expectations (EPS $5.54 vs. $4.65; revenue $17.42B), reported a record backlog driven by construction and AI/data-center power demand, and saw multiple firms raise price targets (MarketBeat average target ~$855; several targets above $800–$900).
• Management warned of a significant headwind from tariffs—an estimated $2.2B–$2.4B cost for 2026—that could pressure margins despite the revenue and backlog strength.

Caterpillar (NYSE:CAT - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

CAT has been the topic of several other reports. Royal Bank Of Canada upped their price objective on Caterpillar from $587.00 to $658.00 and gave the company a "sector perform" rating in a research report on Friday, January 30th. Daiwa Securities Group raised their target price on shares of Caterpillar from $790.00 to $900.00 and gave the stock a "neutral" rating in a research report on Friday. Wolfe Research raised their target price on shares of Caterpillar from $670.00 to $750.00 and gave the stock an "outperform" rating in a research report on Tuesday, March 31st. Williams Trading set a $825.00 target price on shares of Caterpillar in a research report on Tuesday, March 10th. Finally, Morgan Stanley set a $915.00 target price on shares of Caterpillar and gave the stock an "equal weight" rating in a research report on Friday. Sixteen equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $854.86.

Caterpillar Trading Up 0.0%

Shares of Caterpillar stock opened at $890.15 on Friday. The business has a 50 day moving average price of $746.86 and a 200 day moving average price of $655.04. The company has a market capitalization of $414.18 billion, a P/E ratio of 47.30, a P/E/G ratio of 2.05 and a beta of 1.63. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.94. Caterpillar has a 1 year low of $318.11 and a 1 year high of $905.00.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, topping the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.53 billion. During the same quarter last year, the business posted $4.25 earnings per share. Caterpillar's revenue was up 22.2% compared to the same quarter last year. Sell-side analysts anticipate that Caterpillar will post 22.89 EPS for the current fiscal year.

Insider Buying and Selling at Caterpillar

In related news, insider Rodney Michael Shurman sold 2,278 shares of the stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $759.61, for a total value of $1,730,391.58. Following the transaction, the insider directly owned 1,443 shares of the company's stock, valued at approximately $1,096,117.23. This trade represents a 61.22% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CAO William E. Schaupp sold 972 shares of Caterpillar stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $764.20, for a total value of $742,802.40. Following the completion of the transaction, the chief accounting officer owned 824 shares in the company, valued at $629,700.80. The trade was a 54.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 125,950 shares of company stock worth $88,577,390. 0.33% of the stock is currently owned by company insiders.

Institutional Trading of Caterpillar

A number of institutional investors and hedge funds have recently bought and sold shares of CAT. Pacific Point Advisors LLC acquired a new position in Caterpillar during the fourth quarter valued at approximately $579,000. Brighton Jones LLC increased its position in shares of Caterpillar by 51.5% in the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock worth $2,688,000 after acquiring an additional 2,519 shares in the last quarter. United Bank raised its stake in shares of Caterpillar by 108.5% in the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company's stock valued at $1,585,000 after acquiring an additional 2,125 shares during the period. Schnieders Capital Management LLC. lifted its holdings in shares of Caterpillar by 3.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock valued at $3,551,000 after acquiring an additional 347 shares in the last quarter. Finally, Alliancebernstein L.P. lifted its holdings in shares of Caterpillar by 6.5% during the 2nd quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company's stock valued at $222,120,000 after acquiring an additional 34,846 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar beat Q1 revenue and EPS expectations and reported a record backlog, driven by higher volume and pricing across construction and power systems — a core reason the stock rallied after earnings. Caterpillar expects AI-driven demand for power, construction to fuel growth — Reuters
• Positive Sentiment: Analysts sharply raised price targets and upgraded ratings (JPMorgan, Jefferies, Wells Fargo, Baird, Citigroup, Morgan Stanley among others), signaling renewed street confidence and creating upward momentum for the stock. Morgan Stanley Doubles Price Target to $915 — 247WallSt
• Positive Sentiment: Demand tied to AI/data-center buildouts is boosting Cat’s power and energy backlog; management is raising 2030 targets and plans to roughly triple power-generation capacity, which supports a multi-year growth runway beyond cyclical construction. Caterpillar to triple power generation capacity — Yahoo Finance
• Positive Sentiment: Market narrative has shifted: short interest and skeptical bears are receding as the AI-power story gains traction, amplifying upside as skeptics fold. Caterpillar’s biggest bear folds as AI power demand soars — Mining.com
• Positive Sentiment: Strategic partnerships (e.g., framework with ProPetro’s PROPWR) and large supply agreements for data-center and industrial power strengthen the revenue mix in higher-margin power systems. Caterpillar taps PROPWR and data centers — Yahoo Finance
• Neutral Sentiment: Technical momentum is strong (IBD composite rating surged toward the top of the universe) and the company announced a virtual annual shareholder meeting; these are market-interest and governance items rather than direct catalysts. IBD Composite Rating Surges — Yahoo/IBD
• Negative Sentiment: Management warned of significant tariff costs for 2026 — a $2.2B–$2.4B range — that will pressure margins and partially offset revenue strength; investors should watch margin trends and any changes to the tariff outlook. Caterpillar signals tariff cost range and 2026 sales growth — Seeking Alpha

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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