HSBC Forecasts Strong Price Appreciation for Caterpillar (NYSE:CAT) Stock

Caterpillar (NYSE:CAT) had its target price upped by equities researchers at HSBC from $660.00 to $850.00 in a research note issued to investors on Thursday,MarketScreener reports. The brokerage presently has a “buy” rating on the industrial products company’s stock. HSBC’s target price would suggest a potential upside of 17.02% from the company’s previous close.

A number of other research analysts also recently issued reports on CAT. Evercore boosted their price target on Caterpillar from $476.00 to $630.00 and gave the company an “outperform” rating in a report on Monday, November 17th. Citigroup upped their target price on Caterpillar from $710.00 to $760.00 and gave the company a “buy” rating in a report on Monday, February 2nd. Oppenheimer lifted their price target on shares of Caterpillar from $700.00 to $729.00 and gave the company an “outperform” rating in a report on Friday, January 30th. Truist Financial upped their price objective on shares of Caterpillar from $729.00 to $786.00 and gave the stock a “buy” rating in a report on Monday, February 2nd. Finally, Robert W. Baird set a $805.00 target price on shares of Caterpillar in a research note on Friday, January 30th. Sixteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $690.90.

Caterpillar Trading Up 7.1%

NYSE:CAT opened at $726.38 on Thursday. The firm has a market capitalization of $339.93 billion, a P/E ratio of 38.60, a P/E/G ratio of 1.61 and a beta of 1.58. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44. The company has a fifty day moving average of $617.15 and a 200 day moving average of $528.99. Caterpillar has a 52 week low of $267.30 and a 52 week high of $727.40.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Thursday, January 29th. The industrial products company reported $5.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.67 by $0.49. The business had revenue of $19.13 billion for the quarter, compared to analyst estimates of $17.81 billion. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. The company’s revenue was up 17.9% on a year-over-year basis. During the same quarter last year, the firm earned $5.14 EPS. On average, research analysts predict that Caterpillar will post 19.86 earnings per share for the current year.

Insider Buying and Selling at Caterpillar

In related news, insider Jason Kaiser sold 10,707 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The stock was sold at an average price of $563.60, for a total transaction of $6,034,465.20. Following the completion of the transaction, the insider owned 8,649 shares of the company’s stock, valued at $4,874,576.40. This trade represents a 55.32% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Denise C. Johnson sold 39,138 shares of Caterpillar stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $681.08, for a total value of $26,656,109.04. Following the transaction, the insider owned 43,350 shares of the company’s stock, valued at $29,524,818. The trade was a 47.45% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 120,747 shares of company stock valued at $78,324,008. 0.33% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Caterpillar

Several large investors have recently modified their holdings of the stock. Torren Management LLC purchased a new stake in shares of Caterpillar during the fourth quarter valued at approximately $27,000. IFS Advisors LLC purchased a new stake in Caterpillar during the 4th quarter valued at $31,000. Rialto Wealth Management LLC increased its holdings in shares of Caterpillar by 47.4% in 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 in the last quarter. Marquette Asset Management LLC raised its stake in shares of Caterpillar by 1,060.0% in the third quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 53 shares during the last quarter. Finally, Noble Wealth Management PBC lifted its holdings in shares of Caterpillar by 140.0% during the fourth quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company’s stock valued at $34,000 after purchasing an additional 35 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q4 beat and revenue/backlog strength — CAT reported revenue and EPS above expectations and highlighted a record backlog that supports near‑term revenue visibility. Zacks: Post Q4 analysis
• Positive Sentiment: AI / data‑center tailwind — Coverage highlights growing demand for power and infrastructure tied to AI data‑center buildouts, which is a new revenue catalyst beyond traditional equipment cycles. Yahoo: AI data centers
• Positive Sentiment: Analyst upgrade & higher price target — HSBC raised its CAT target to $850 and maintained a buy rating, adding upward pressure to the stock. MarketScreener: HSBC PT raise
• Neutral Sentiment: Market momentum helped lift the name — CAT was one of the contributors to the Dow’s rally today, so some of the move is broad market/sector strength rather than company‑specific news. MSN: Dow soars
• Neutral Sentiment: Valuation debate — Multiple writeups note that CAT’s rerating has pushed valuation to a premium, framing risk/reward even as fundamentals improve. This shapes investor caution but doesn’t change the underlying backlog/earnings. MarketBeat: Valuation piece
• Negative Sentiment: Large insider selling — Several senior insiders disclosed multi‑million dollar stock sales (e.g., Denise C. Johnson, Bob De Lange), which can signal profit‑taking and may create short‑term selling pressure. InsiderTrades: Insider sales
• Negative Sentiment: Analyst caution on pace of growth — CFRA and others warn that while financials are strong, underlying growth may not be fast enough to justify some of the recent extreme share‑price moves; that comment tempers the rally. YouTube: CFRA caution

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.