Caterpillar Inc. (CAT) - What Are Investment Firms Thinking About This Stock?

Key Points

• Analyst sentiment is moderately bullish: Fifteen of 27 analysts rate Caterpillar a buy, while 12 recommend holding the stock. The average 12-month price target is $967.83.
• Caterpillar exceeded quarterly expectations: The company reported $8.17 in EPS versus the $6.22 consensus estimate, while revenue rose 23.7% year over year to $20.54 billion.
• Institutional ownership remains strong: Institutional investors and hedge funds own nearly 71% of CAT shares, although CEO Joseph Creed recently sold approximately $26.2 million worth of stock.

Caterpillar Inc. (NYSE:CAT - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twenty-seven research firms that are presently covering the firm, Marketbeat.com reports. Twelve investment analysts have rated the stock with a hold recommendation and fifteen have issued a buy recommendation on the company. The average 12 month target price among brokers that have issued a report on the stock in the last year is $967.83.

Several research firms have issued reports on CAT. Erste Group Bank downgraded Caterpillar from a "buy" rating to a "hold" rating in a report on Monday, July 27th. Wells Fargo & Company increased their target price on Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research note on Tuesday, June 23rd. Weiss Ratings raised shares of Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, October 14th. Oppenheimer dropped their price target on shares of Caterpillar from $1,118.00 to $1,009.00 and set an "outperform" rating for the company in a research note on Wednesday, October 14th. Finally, Needham & Company LLC set a $980.00 price target on shares of Caterpillar in a research note on Thursday, September 10th.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar received a Zacks Rank upgrade to #2 (Buy), reflecting increased optimism about its earnings outlook. That could provide support to the shares, although the upgrade is based on a quantitative ranking rather than a major change in company fundamentals. Caterpillar rating upgrade article
• Positive Sentiment: Caterpillar is investing $10 million to expand its North Carolina workforce and manufacturing presence. The investment signals confidence in regional production demand and could support long-term growth, though it is unlikely to materially affect near-term earnings. Caterpillar North Carolina investment article
• Neutral Sentiment: Analyst coverage remains broadly favorable, with Wall Street’s average recommendation suggesting CAT is suitable for portfolios. However, the report cautions that sell-side recommendations can be overly optimistic, limiting the signal’s value for investors. Caterpillar analyst recommendation article
• Neutral Sentiment: A comparison with W.W. Grainger and other industrial-products companies provides context on CAT’s year-to-date performance, but does not introduce a new company-specific catalyst. Caterpillar peer performance article
• Negative Sentiment: Caterpillar formally objected to the unauthorized tokenized trading of its shares on the OKX-ICE venue, citing regulatory and reputational risks. The dispute may create headline risk and reinforces concerns about how CAT stock is represented in unregistered digital-asset markets. Caterpillar tokenized shares article

Caterpillar Price Performance

Shares of Caterpillar stock opened at $725.27 on Wednesday. The business's fifty day moving average price is $807.63 and its 200 day moving average price is $856.77. Caterpillar has a twelve month low of $510.21 and a twelve month high of $1,073.46. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. The stock has a market capitalization of $333.38 billion, a P/E ratio of 31.21, a PEG ratio of 1.25 and a beta of 1.58.

Caterpillar (NYSE:CAT - Get Free Report) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. During the same quarter in the prior year, the company earned $4.72 EPS. The company's revenue was up 23.7% on a year-over-year basis. As a group, research analysts anticipate that Caterpillar will post 27.49 earnings per share for the current year.

Caterpillar Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Monday, October 26th will be given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, October 26th. Caterpillar's dividend payout ratio is currently 28.06%.

Insider Buying and Selling at Caterpillar

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the firm's stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the transaction, the chief executive officer owned 34,555 shares of the company's stock, valued at $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

Several large investors have recently made changes to their positions in CAT. Diversify Advisory Services LLC acquired a new position in Caterpillar in the 2nd quarter valued at about $5,372,000. D.B. Root & Company LLC acquired a new stake in shares of Caterpillar during the 2nd quarter worth about $850,000. Dearborn Partners LLC acquired a new stake in shares of Caterpillar during the 2nd quarter worth about $20,293,000. B. Metzler seel. Sohn & Co. AG grew its holdings in shares of Caterpillar by 4.3% during the second quarter. B. Metzler seel. Sohn & Co. AG now owns 62,731 shares of the industrial products company's stock worth $66,802,000 after buying an additional 2,590 shares in the last quarter. Finally, Van Hulzen Asset Management LLC grew its holdings in shares of Caterpillar by 85.3% during the second quarter. Van Hulzen Asset Management LLC now owns 2,809 shares of the industrial products company's stock worth $2,991,000 after buying an additional 1,293 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

About Caterpillar

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.

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