Erste Group Bank Weighs in on Caterpillar FY2027 Earnings

Key Points

• Erste Group Bank raised Caterpillar’s FY2027 EPS forecast to $32.28 from $32.16, though it maintained a “Hold” rating. The new estimate remains above the broader full-year consensus of $27.37 per share.
• Caterpillar recently delivered a strong quarterly performance, reporting $8.17 EPS versus the $6.22 consensus and $20.54 billion in revenue, up 23.7% year over year.
• Analyst sentiment is broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $994.17, but insider selling—including a roughly $26.2 million CEO share sale—could weigh on investor sentiment.

Caterpillar Inc. (NYSE:CAT - Free Report) - Research analysts at Erste Group Bank boosted their FY2027 earnings per share estimates for shares of Caterpillar in a report issued on Tuesday, September 8th. Erste Group Bank analyst H. Engel now forecasts that the industrial products company will post earnings per share of $32.28 for the year, up from their previous forecast of $32.16. Erste Group Bank currently has a "Hold" rating on the stock. The consensus estimate for Caterpillar's current full-year earnings is $27.37 per share.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share 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 company had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. During the same period in the previous year, the firm earned $4.72 EPS. The firm's quarterly revenue was up 23.7% on a year-over-year basis.

Several other equities analysts also recently commented on CAT. Citigroup upped their price objective on Caterpillar from $1,020.00 to $1,100.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Wells Fargo & Company boosted their price target on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research report on Tuesday, June 23rd. Barclays raised their price objective on shares of Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a report on Thursday, August 6th. DA Davidson increased their target price on Caterpillar from $845.00 to $882.00 and gave the stock a "neutral" rating in a research report on Thursday, August 6th. Finally, Sanford C. Bernstein reiterated a "market perform" rating and issued a $1,002.00 price target on shares of Caterpillar in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $994.17.

Caterpillar Stock Down 1.3%

CAT opened at $804.94 on Friday. The company's 50-day moving average price is $856.52 and its two-hundred day moving average price is $840.45. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. Caterpillar has a twelve month low of $423.32 and a twelve month high of $1,073.46. The stock has a market cap of $370.01 billion, a price-to-earnings ratio of 34.64, a PEG ratio of 1.41 and a beta of 1.60.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Diversify Advisory Services LLC purchased a new position in Caterpillar in the second quarter worth about $5,372,000. D.B. Root & Company LLC purchased a new stake in Caterpillar during the second quarter valued at approximately $850,000. Dearborn Partners LLC bought a new stake in shares of Caterpillar in the 2nd quarter valued at approximately $20,293,000. Axxcess Wealth Management LLC boosted its holdings in shares of Caterpillar by 2.8% in the 4th quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock worth $12,844,000 after purchasing an additional 604 shares during the period. Finally, DSG Capital Advisors LLC purchased a new stake in Caterpillar during the 1st quarter valued at $1,226,000. Institutional investors own 70.98% of the company's stock.

Insider Transactions at Caterpillar

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. This represents a 48.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.33% of the stock is owned by corporate insiders.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analyst upgrade: Freedom Broker upgraded Caterpillar from “hold” to “buy” and set a $980 price target, implying meaningful upside from recent levels. Caterpillar analyst upgrade
• Positive Sentiment: Expansion investment: The Lafayette council approved incentives for Caterpillar’s planned $890 million expansion, potentially strengthening production capacity and supporting regional demand. Lafayette Caterpillar expansion
• Positive Sentiment: AI and infrastructure opportunity: Coverage highlighted Caterpillar’s collaboration with FieldAI on physical AI, autonomy and robotics for job sites. Investors also see the company as a beneficiary of AI-related data-center and infrastructure construction, with orders reportedly extending into 2030. Caterpillar FieldAI partnership
• Positive Sentiment: Improving earnings outlook: Zacks Research raised multiple 2026–2028 EPS estimates and maintained a “Strong-Buy” rating, including its FY2027 forecast to $31.43 and FY2028 forecast to $36.64. Recent reports also cited strong sector-wide construction and manufacturing demand. Caterpillar market performance
• Neutral Sentiment: Valuation and technical positioning: CAT remains near its 200-day moving average after a strong rally. Its elevated valuation leaves the stock sensitive to interest rates, macroeconomic headlines and shifts in investor sentiment.
• Negative Sentiment: Heavy insider selling: Company insiders recorded 33 sales versus one purchase over the past six months. CEO Joseph Creed accounted for roughly $26 million of sales, which may be fueling concerns about near-term upside and encouraging profit-taking. Caterpillar insider trading

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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