Caterpillar (NYSE:CAT) Upgraded to “Buy” at Wall Street Zen

Caterpillar (NYSE:CAT) was upgraded by stock analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a report released on Saturday.

Several other brokerages also recently commented on CAT. Truist Financial lifted their target price on Caterpillar from $729.00 to $786.00 and gave the stock a “buy” rating in a report on Monday, February 2nd. Raymond James Financial reaffirmed a “market perform” rating on shares of Caterpillar in a research report on Wednesday, January 7th. Argus lifted their price target on Caterpillar from $460.00 to $625.00 and gave the company a “buy” rating in a research report on Wednesday, November 19th. CICC Research started coverage on Caterpillar in a research report on Friday. They set an “outperform” rating for the company. Finally, JPMorgan Chase & Co. lifted their price target on Caterpillar from $740.00 to $765.00 and gave the stock an “overweight” rating in a research note on Friday, January 30th. Sixteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $690.90.

Caterpillar Trading Up 7.1%

Shares of CAT stock opened at $726.38 on Friday. The firm has a 50 day moving average price of $617.15 and a two-hundred day moving average price of $528.99. The company has a market capitalization of $339.93 billion, a PE ratio of 38.60, a price-to-earnings-growth ratio of 1.61 and a beta of 1.58. Caterpillar has a 12-month low of $267.30 and a 12-month high of $727.40. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44.

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

Insider Buying and Selling

In other news, CFO Andrew R. J. Bonfield sold 10,000 shares of Caterpillar stock in a transaction that occurred on Wednesday, December 31st. The shares were 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 in the company, valued at $26,142,227.60. This trade represents a 18.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Jason Kaiser sold 10,707 shares of the firm’s stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $563.60, for a total value of $6,034,465.20. Following the transaction, the insider owned 8,649 shares of the company’s stock, valued at $4,874,576.40. This represents a 55.32% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 120,747 shares of company stock worth $78,324,008 in the last quarter. 0.33% of the stock is owned by insiders.

Hedge Funds Weigh In On Caterpillar

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Kilter Group LLC bought a new position in Caterpillar during the second quarter valued at $27,000. Torren Management LLC purchased a new position in shares of Caterpillar during the fourth quarter valued at $27,000. Mid American Wealth Advisory Group Inc. bought a new stake in shares of Caterpillar in the 2nd quarter valued at about $28,000. Marquette Asset Management LLC raised its stake in 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 buying an additional 53 shares in the last quarter. Finally, IFS Advisors LLC purchased a new stake in shares of Caterpillar during the 4th quarter worth $31,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

More 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

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.