Caterpillar Inc. (NYSE:CAT) Receives Average Rating of “Moderate Buy” from Brokerages

Caterpillar Inc. (NYSE:CAT) has received an average recommendation of “Moderate Buy” from the twenty-six brokerages that are presently covering the stock, Marketbeat reports. One research analyst has rated the stock with a sell rating, six have given a hold rating, sixteen have given a buy rating and three have given a strong buy rating to the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $623.10.

CAT has been the topic of a number of recent analyst reports. HSBC upgraded shares of Caterpillar from a “hold” rating to a “buy” rating and raised their price target for the company from $405.00 to $660.00 in a report on Wednesday, November 5th. Barclays lifted their price target on shares of Caterpillar from $485.00 to $555.00 and gave the stock an “equal weight” rating in a report on Thursday, October 30th. UBS Group increased their price objective on Caterpillar from $506.00 to $581.00 and gave the company a “neutral” rating in a report on Tuesday, November 4th. DA Davidson boosted their target price on Caterpillar from $408.00 to $569.00 and gave the stock a “neutral” rating in a research note on Monday, November 3rd. Finally, Robert W. Baird increased their price target on Caterpillar from $612.00 to $680.00 and gave the company an “outperform” rating in a research note on Thursday, October 30th.

Caterpillar Stock Down 0.0%

Caterpillar stock opened at $646.95 on Monday. The company has a quick ratio of 0.86, a current ratio of 1.38 and a debt-to-equity ratio of 1.34. The firm has a market cap of $302.76 billion, a P/E ratio of 33.21, a P/E/G ratio of 2.50 and a beta of 1.57. The business has a fifty day moving average of $586.90 and a two-hundred day moving average of $503.62. Caterpillar has a twelve month low of $267.30 and a twelve month high of $655.68.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Monday, November 3rd. The industrial products company reported $4.95 EPS for the quarter, topping the consensus estimate of $4.52 by $0.43. Caterpillar had a return on equity of 47.16% and a net margin of 14.34%.The firm had revenue of $17.64 billion during the quarter, compared to analyst estimates of $16.72 billion. During the same period in the previous year, the company posted $5.17 EPS. The business’s revenue for the quarter was up 9.5% compared to the same quarter last year. On average, analysts forecast that Caterpillar will post 19.86 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Tuesday, January 20th will be paid a $1.51 dividend. The ex-dividend date is Tuesday, January 20th. This represents a $6.04 dividend on an annualized basis and a yield of 0.9%. Caterpillar’s dividend payout ratio (DPR) is 31.01%.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Bank of America raised its price target on CAT to $708 and kept a “buy” rating — a meaningful bullish signal from a major shop that can attract flows and support the share price. MarketScreener
• Positive Sentiment: JPMorgan analyst told investors CAT shares are expected to rise, adding institutional conviction to the bullish case and potentially supporting buying interest. Caterpillar (NYSE:CAT) Stock Price Expected to Rise
• Positive Sentiment: Caterpillar announced a partnership with NVIDIA to develop foundations for autonomous systems — this accelerates higher-margin, software-enabled product opportunities (autonomy, telematics) over time. Caterpillar partners with NVIDIA
• Positive Sentiment: Bernstein highlighted CAT as a potential winner if data centers shift to on-site power generation — a new end market for power systems could boost equipment and power solutions demand. Caterpillar is potential winner if data centers move power generation on-site
• Positive Sentiment: Articles emphasizing CAT’s ~30% payout ratio argue its dividend is well-covered and likely sustainable through downturns — supportive for income-focused investors. Caterpillar’s 30% Payout Ratio Shows Why Its Dividend Can Survive the Next Recession
• Neutral Sentiment: Caterpillar set its Q4 and full-year 2025 earnings release for Jan. 29 — this is the next key event risk/opportunity that will likely drive short-term volatility. Caterpillar Inc. to Announce Fourth-Quarter and Full-Year 2025 Financial Results on January 29
• Neutral Sentiment: Zacks highlights industrial stocks that could beat earnings using its Earnings ESP screen — a potential catalyst if CAT is included, but specifics/odds are unclear. These 2 Industrial Products Stocks Could Beat Earnings
• Negative Sentiment: Caterpillar is contesting a patent complaint from Bobcat and the trade commission will investigate — pending legal/ITC outcomes create downside risk and potential remedy costs or product restrictions. Caterpillar Fights Bobcat Patent Complaint; Trade Commission to Investigate

Insider Activity at Caterpillar

In related news, Director David Maclennan purchased 300 shares of the business’s stock in a transaction on Thursday, November 6th. The shares were acquired at an average price of $568.86 per share, for a total transaction of $170,658.00. Following the purchase, the director owned 7,947 shares of the company’s stock, valued at $4,520,730.42. This trade represents a 3.92% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of Caterpillar stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $575.06, for a total transaction of $5,750,600.00. Following the sale, the chief financial officer owned 45,460 shares of the company’s stock, valued at $26,142,227.60. The trade was a 18.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 54,729 shares of company stock worth $31,084,308 in the last 90 days. 0.33% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. KWB Wealth lifted its holdings in shares of Caterpillar by 3.2% in the 4th quarter. KWB Wealth now owns 549 shares of the industrial products company’s stock valued at $315,000 after buying an additional 17 shares during the period. Montecito Bank & Trust lifted its holdings in Caterpillar by 0.5% in the fourth quarter. Montecito Bank & Trust now owns 3,362 shares of the industrial products company’s stock valued at $1,926,000 after acquiring an additional 17 shares during the period. WealthShield Partners LLC lifted its holdings in Caterpillar by 1.6% in the third quarter. WealthShield Partners LLC now owns 1,122 shares of the industrial products company’s stock valued at $535,000 after acquiring an additional 18 shares during the period. Rialto Wealth Management LLC grew its stake in shares of Caterpillar by 47.4% during the 4th quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock worth $32,000 after purchasing an additional 18 shares during the period. Finally, one8zero8 LLC increased its holdings in shares of Caterpillar by 3.2% during the 3rd quarter. one8zero8 LLC now owns 619 shares of the industrial products company’s stock valued at $295,000 after purchasing an additional 19 shares in the last quarter. 70.98% of the stock is currently owned by institutional investors and hedge funds.

About Caterpillar

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.