Caterpillar Inc. (NYSE:CAT) Stock Has Average Target Price of $994.38 According to Brokerages

Key Points

• Analyst sentiment is moderately bullish: Twenty-seven brokerages give Caterpillar a consensus “Moderate Buy” rating, with 15 buys, 11 holds and one strong buy. The average 12-month price target is $994.38 versus a recent share price of $820.66.
• Caterpillar delivered a strong latest quarter: Earnings per share reached $8.17, beating estimates of $6.22, while revenue rose 23.7% year over year to $20.54 billion, above the $19.34 billion consensus.
• Technology initiatives are strengthening the long-term outlook: Caterpillar is partnering with FieldAI on physical AI and autonomous robotics, while remote-autonomy trials indicate progress toward commercial deployment. Separately, CEO Joseph Creed sold about $26.2 million of shares, reducing his ownership by 48.39%.

Caterpillar Inc. (NYSE:CAT - Get Free Report) has been given an average recommendation of "Moderate Buy" by the twenty-seven ratings firms that are currently covering the stock, Marketbeat reports. Eleven investment analysts have rated the stock with a hold recommendation, fifteen have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among brokers that have covered the stock in the last year is $994.38.

CAT has been the topic of a number of research reports. JPMorgan Chase & Co. increased their price objective on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a research note on Wednesday, June 17th. Wells Fargo & Company lifted 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 report on Tuesday, June 23rd. Freedom Broker raised shares of Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 price target on the stock in a report on Thursday, September 10th. Weiss Ratings raised shares of Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 19th. Finally, Truist Financial set a $980.00 price objective on Caterpillar in a research report on Wednesday, August 5th.

Caterpillar Stock Performance

Shares of CAT stock opened at $820.66 on Friday. The stock has a fifty day moving average price of $828.22 and a 200 day moving average price of $844.77. 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 stock has a market cap of $377.23 billion, a PE ratio of 35.31, a P/E/G ratio of 1.40 and a beta of 1.60. Caterpillar has a 1 year low of $462.38 and a 1 year high of $1,073.46.

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 for the quarter, beating the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.Caterpillar's revenue was up 23.7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $4.72 earnings per share. Sell-side analysts forecast that Caterpillar will post 27.37 earnings per share for the current fiscal year.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is partnering with FieldAI to advance “physical AI” and autonomous robotics. The collaboration could improve the company’s ability to deploy intelligent machines across construction, mining and other industrial sites, strengthening its long-term technology narrative. Caterpillar partners with FieldAI to advance physical AI and autonomous robotics
• Positive Sentiment: Reports that remote autonomy is allowing equipment operators to work outside the cab provide early evidence that Caterpillar’s autonomous hauling technology is moving toward commercial deployment. Three operating sites have reportedly demonstrated the technology, although fleet size and contract economics remain undisclosed. Caterpillar Stock Gains as Remote Autonomy Leaves the Cab
• Positive Sentiment: Caterpillar was cited among the stocks helping lift the Dow, indicating that investors were rewarding the company alongside Microsoft. The attention follows Caterpillar’s strong latest quarter, including revenue above $20 billion and an earnings beat. Dow up on gains in shares of Microsoft and Caterpillar
• Positive Sentiment: Analysts continue to highlight Caterpillar’s dominant positions in construction and mining, substantial free-cash-flow generation, dividend-growth potential and demand linked to the AI data-center build-out. Is Caterpillar the Best Industrials Stock to Buy Right Now?

Insiders Place Their Bets

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

Institutional Trading of Caterpillar

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of Caterpillar during the 2nd quarter worth about $40,457,153,000. Bank of America Corp DE purchased a new stake in shares of Caterpillar during the second quarter worth about $5,818,150,000. Diamant Asset Management Inc. raised its position in shares of Caterpillar by 68,427.2% in the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock valued at $2,224,992,000 after buying an additional 3,136,020 shares during the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Caterpillar during the second quarter valued at approximately $3,192,710,000. Finally, Legal & General Group Plc acquired a new stake in Caterpillar during the second quarter worth approximately $2,783,451,000. Hedge funds and other institutional investors own 70.98% of the company's stock.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction, mining, and industrial equipment. The company's products include excavators, dozers, wheel loaders, motor graders, articulated trucks, and off-highway trucks, as well as related attachments and work tools. Caterpillar also supplies replacement parts, equipment services, technology solutions, and rental support through its dealer network.

The company serves customers in construction, mining, quarrying, energy, transportation, forestry, agriculture, and government-related industries.

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