Bank of America Forecasts Strong Price Appreciation for Caterpillar (NYSE:CAT) Stock

Caterpillar (NYSE:CAT) had its target price increased by analysts at Bank of America from $708.00 to $735.00 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has a “buy” rating on the industrial products company’s stock. Bank of America‘s price target points to a potential upside of 11.85% from the company’s current price.

A number of other research firms have also issued reports on CAT. Hsbc Global Res raised shares of Caterpillar from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 6th. Truist Financial restated a “buy” rating and set a $729.00 price target (up from $582.00) on shares of Caterpillar in a research report on Thursday, October 30th. Raymond James Financial reaffirmed a “market perform” rating on shares of Caterpillar in a research note on Wednesday, January 7th. Evercore ISI boosted their target price on Caterpillar from $476.00 to $630.00 and gave the stock an “outperform” rating in a report on Monday, November 17th. Finally, Oppenheimer upped their price target on Caterpillar from $645.00 to $700.00 and gave the company an “outperform” rating in a research report on Tuesday, January 20th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $664.76.

Caterpillar Price Performance

NYSE:CAT opened at $657.13 on Friday. The stock has a 50 day moving average of $604.31 and a two-hundred day moving average of $519.85. Caterpillar has a 12 month low of $267.30 and a 12 month high of $679.99. The firm has a market cap of $307.52 billion, a P/E ratio of 34.92, a price-to-earnings-growth ratio of 2.56 and a beta of 1.57. The company has a current ratio of 1.44, a quick ratio of 0.86 and a debt-to-equity ratio of 1.44.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, January 29th. The industrial products company reported $5.16 earnings per share for the quarter, beating the consensus estimate of $4.67 by $0.49. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The business had revenue of $19.13 billion for the quarter, compared to the consensus estimate of $17.81 billion. During the same quarter last year, the business posted $5.14 earnings per share. The business’s quarterly revenue was up 17.9% compared to the same quarter last year. On average, analysts expect that Caterpillar will post 19.86 earnings per share for the current fiscal year.

Insider Transactions at Caterpillar

In other news, insider Anthony D. Fassino sold 8,184 shares of the company’s stock in a transaction on Monday, November 10th. The stock was sold at an average price of $570.18, for a total value of $4,666,353.12. Following the transaction, the insider owned 41,512 shares of the company’s stock, valued at $23,669,312.16. This represents a 16.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Lange Bob De sold 14,638 shares of the firm’s stock in a transaction dated Wednesday, November 5th. The stock was sold at an average price of $562.36, for a total value of $8,231,825.68. Following the sale, the insider directly owned 80,209 shares of the company’s stock, valued at $45,106,333.24. The trade was a 15.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 54,729 shares of company stock valued at $31,084,308 in the last ninety days. 0.33% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of CAT. Sigma Planning Corp raised its stake in shares of Caterpillar by 18.4% in the 4th quarter. Sigma Planning Corp now owns 24,811 shares of the industrial products company’s stock valued at $14,248,000 after acquiring an additional 3,858 shares during the period. Citizens Financial Group Inc. RI increased its holdings in Caterpillar by 9.2% in the 4th quarter. Citizens Financial Group Inc. RI now owns 33,679 shares of the industrial products company’s stock valued at $19,293,000 after purchasing an additional 2,826 shares during the last quarter. North Star Investment Management Corp. raised its position in Caterpillar by 3.3% in the fourth quarter. North Star Investment Management Corp. now owns 11,755 shares of the industrial products company’s stock valued at $6,734,000 after purchasing an additional 373 shares during the period. Activest Wealth Management lifted its stake in Caterpillar by 234.5% during the fourth quarter. Activest Wealth Management now owns 592 shares of the industrial products company’s stock worth $339,000 after purchasing an additional 415 shares in the last quarter. Finally, WoodTrust Financial Corp boosted its position in shares of Caterpillar by 256.8% during the fourth quarter. WoodTrust Financial Corp now owns 2,219 shares of the industrial products company’s stock worth $1,271,000 after buying an additional 1,597 shares during the period. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q4 results beat expectations — adjusted EPS $5.16 vs. $4.67 consensus and revenue $19.1B (record quarterly sales). Management highlighted strong equipment volumes that drove top‑line growth. PR Newswire: Q4 and FY2025 Results
• Positive Sentiment: AI/data-center demand is a clear growth driver — power-generation and energy equipment sales to data centers boosted the quarter and are being positioned as durable, long‑lived demand rather than cyclical construction spend. MarketWatch: AI data-center boom
• Positive Sentiment: Analysts raised price targets — JPMorgan bumped its target to $765 and kept an overweight stance, signaling further upside from current levels. MarketScreener: JPMorgan PT to $765
• Positive Sentiment: Bank of America also raised its target to $735 and maintained a buy rating, reinforcing buy-side conviction after the beat. Benzinga: BofA raises PT to $735
• Neutral Sentiment: Strong cash generation and capital return — full-year enterprise operating cash flow was robust ($11.7B), ending cash near $10B and ~$7.9B deployed to buybacks/dividends in 2025, supporting shareholder returns but moderating liquidity commentary. PR Newswire: Cash flow & buybacks
• Negative Sentiment: Tariff headwind flagged — Caterpillar warned of roughly a $2.6B tariff impact in 2026, saying higher tariffs and costs will pressure margins and could offset some benefits from stronger volumes. That guidance likely amplified near‑term selling. Reuters: $2.6B tariff hit warned

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.