Erste Group Bank Raises Earnings Estimates for Caterpillar

Key Points

• Erste Group raised its FY2026 EPS estimate for Caterpillar to $24.00 (from $22.97) and projects FY2027 EPS of $28.37, above the consensus FY2026 estimate of $23.97.
• Caterpillar beat Q1 expectations with $5.54 EPS vs. $4.65 expected and $17.42 billion in revenue (vs. $16.53B), with revenue up 22.2% year‑over‑year, supporting the stock's recent rally.
• Several firms have lifted price targets (consensus target $890.27, rating "Moderate Buy"), but heavy insider selling in May and elevated intraday volatility may temper investor sentiment.

Caterpillar Inc. (NYSE:CAT - Free Report) - Research analysts at Erste Group Bank raised their FY2026 EPS estimates for shares of Caterpillar in a research report issued to clients and investors on Tuesday, May 5th. Erste Group Bank analyst H. Engel now expects that the industrial products company will earn $24.00 per share for the year, up from their previous estimate of $22.97. The consensus estimate for Caterpillar's current full-year earnings is $23.97 per share. Erste Group Bank also issued estimates for Caterpillar's FY2027 earnings at $28.37 EPS.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating the consensus estimate of $4.65 by $0.89. The company had revenue of $17.42 billion for the quarter, compared to the consensus estimate of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The firm's revenue was up 22.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.25 EPS.

Other equities analysts also recently issued reports about the stock. Wolfe Research upped their price target on shares of Caterpillar from $670.00 to $750.00 and gave the company an "outperform" rating in a report on Tuesday, March 31st. Truist Financial set a $1,043.00 target price on shares of Caterpillar in a research report on Friday, May 1st. DA Davidson lifted their price target on shares of Caterpillar from $650.00 to $845.00 and gave the company a "neutral" rating in a research note on Monday. Wall Street Zen upgraded Caterpillar from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Finally, Daiwa Securities Group raised their price objective on Caterpillar from $790.00 to $900.00 and gave the stock a "neutral" rating in a report on Friday, May 1st. Sixteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $890.27.

Caterpillar Stock Performance

Shares of NYSE:CAT opened at $896.03 on Friday. The company has a market capitalization of $412.70 billion, a price-to-earnings ratio of 44.60, a PEG ratio of 1.88 and a beta of 1.63. Caterpillar has a 12 month low of $322.90 and a 12 month high of $931.35. The firm's 50-day moving average is $755.75 and its 200 day moving average is $664.91. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64.

Caterpillar Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Monday, April 20th will be given a $1.51 dividend. This represents a $6.04 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, April 20th. Caterpillar's dividend payout ratio is presently 30.06%.

Insider Transactions at Caterpillar

In other news, insider Lange Bob De sold 24,222 shares of the company's stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total value of $22,354,968.24. Following the completion of the sale, the insider owned 86,029 shares of the company's stock, valued at approximately $79,397,884.68. This represents a 21.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jason Kaiser sold 5,642 shares of the company'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 completion of 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. In the last three months, insiders have sold 75,734 shares of company stock worth $67,054,613. Insiders own 0.33% of the company's stock.

Institutional Investors Weigh In On Caterpillar

Hedge funds and other institutional investors have recently bought and sold shares of the company. Illinois Municipal Retirement Fund raised its holdings in shares of Caterpillar by 7.3% in the third quarter. Illinois Municipal Retirement Fund now owns 17,262 shares of the industrial products company's stock worth $8,237,000 after buying an additional 1,181 shares during the last quarter. Caprock Group LLC acquired a new stake in shares of Caterpillar in the third quarter worth $8,893,000. ZEGA Investments LLC increased its stake in shares of Caterpillar by 149.6% in the third quarter. ZEGA Investments LLC now owns 4,184 shares of the industrial products company's stock worth $1,996,000 after acquiring an additional 2,508 shares during the period. State of New Jersey Common Pension Fund D increased its stake in shares of Caterpillar by 2.5% in the third quarter. State of New Jersey Common Pension Fund D now owns 165,677 shares of the industrial products company's stock worth $79,053,000 after acquiring an additional 4,010 shares during the period. Finally, Juno Financial Group LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth $877,000. Hedge funds and other institutional investors own 70.98% of the company's stock.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q1 beat and strong equipment revenue: CAT reported an EPS and revenue beat with ~38% construction equipment revenue growth, supporting demand/backlog visibility. Read More.
• Positive Sentiment: Analyst target lifts: Several firms raised targets (Argus, HSBC and others), providing fresh valuation support for further buying. Read More. Read More.
• Positive Sentiment: New end‑market narrative: Coverage tying CAT to AI/data‑center power and electrification is expanding the growth story beyond cyclical construction and driving momentum buying. Read More.
• Positive Sentiment: Order visibility/lead times: Supplier and peer notes (e.g., Archrock) show extended lead times for equipment, implying sustained demand and pricing power. Read More.
• Positive Sentiment: Commercial traction & director buy: Deployments of autonomy/power solutions and a small director purchase are constructive for diversification and insider confidence. Read More.
• Neutral Sentiment: Analyst nuance: Some shops raised targets but retained Neutral ratings (e.g., DA Davidson), reflecting debate about remaining upside at a premium multiple. Read More.
• Neutral Sentiment: Corporate PR / workforce initiative: CAT opened registration for a global innovation challenge—positive for branding and talent but unlikely to move near‑term revenue materially. Read More.
• Neutral Sentiment: Volatility: Heavy media coverage and elevated options interest are amplifying intraday swings but do not change underlying fundamentals. Read More.
• Negative Sentiment: Significant insider selling: Several insiders — including CFO Andrew Bonfield, Anthony Fassino and Rodney Shurman — disclosed multi‑million dollar sales and double‑digit percentage trims, which can prompt profit‑taking and weigh on investor sentiment. Read More. Read More.
• Negative Sentiment: Short‑term market drag: Intraday headlines noted CAT shares weighing on the Dow as the recent rally pauses, contributing to today’s downward pressure. Read More. Read More.

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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