Caterpillar (NYSE:CAT) Reaches New 1-Year High Following Analyst Upgrade

Caterpillar Inc. (NYSE:CAT) shares reached a new 52-week high during trading on Tuesday after Bank of America raised their price target on the stock from $735.00 to $825.00. Bank of America currently has a buy rating on the stock. Caterpillar traded as high as $743.50 and last traded at $742.51, with a volume of 2493254 shares changing hands. The stock had previously closed at $726.20.

Several other research analysts have also commented on CAT. Robert W. Baird set a $805.00 price target on Caterpillar in a research report on Friday, January 30th. Wall Street Zen raised shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday. Barclays upped their price objective on Caterpillar from $610.00 to $625.00 and gave the stock an “equal weight” rating in a report on Friday, January 30th. Argus boosted their price target on Caterpillar from $460.00 to $625.00 and gave the stock a “buy” rating in a research note on Wednesday, November 19th. Finally, Evercore increased their price objective on shares of Caterpillar from $476.00 to $630.00 and gave the company an “outperform” rating in a research note on Monday, November 17th. Sixteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $695.19.

Insiders Place Their Bets

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 10,000 shares of Caterpillar stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $575.06, for a total value of $5,750,600.00. Following the completion of the sale, the chief financial officer owned 45,460 shares in the company, valued at $26,142,227.60. The trade was a 18.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Anthony D. Fassino sold 6,033 shares of the stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $722.15, for a total transaction of $4,356,730.95. Following the transaction, the insider owned 41,151 shares in the company, valued at approximately $29,717,194.65. The trade was a 12.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 130,545 shares of company stock worth $88,294,733 over the last ninety days. Company insiders own 0.33% of the company’s stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Bank of America raised its price target on CAT from $735 to $825 and reiterated a “buy” call, adding upward analyst momentum and a near-term catalyst for investor interest. Article Title
• Positive Sentiment: Forbes reports Caterpillar is pushing deeper into AI and data services for construction — a potential shift toward higher-margin, recurring software and telematics revenue that can support higher long-term multiple. From Dirt To Data: How Caterpillar Is Reinventing Construction With AI
• Positive Sentiment: Caterpillar closed 2025 with an ~18% increase in Q4 revenue, underscoring demand resilience across construction and mining — revenue beat helps justify premium valuation while supporting earnings revisions. Caterpillar Posts 18% Rise in 4Q Revenue and Higher Tariff Costs
• Positive Sentiment: Consensus analyst coverage remains skewed positive (many Buy/Outperform ratings and recent target increases), providing a supportive narrative for holders and momentum traders. Are Wall Street Analysts Predicting Caterpillar Stock Will Climb or Sink?
• Neutral Sentiment: Macro and sector commentary (e.g., views on a potential return of inflation and pricing-power plays) could cut both ways — higher equipment pricing helps CAT, but renewed inflation raises input/capital-cost uncertainty. Inflation Is Coming Back – Here’s Where I’m Buying Pricing Power
• Neutral Sentiment: Opinion pieces questioning whether CAT has “run too far” after a big one‑year rally highlight valuation risk and investor caution; useful for gauging profit‑taking pressure but not a hard fundamental change. Has Caterpillar (CAT) Run Too Far After Surging 103% In The Past Year?
• Negative Sentiment: Material insider selling disclosed this week: Anthony Fassino sold ~6,033 shares (~$4.36M) and another senior disclosed a ~22,656‑share sale (~$16.3M). Heavy insider exits can rattle sentiment even with strong company results. Caterpillar (NYSE:CAT) Insider Sells $4,356,730.95 in Stock

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in the company. Torren Management LLC purchased a new stake in shares of Caterpillar during the 4th quarter worth about $27,000. Frazier Financial Advisors LLC lifted its position in Caterpillar by 220.0% during the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after buying an additional 33 shares in the last quarter. IFS Advisors LLC purchased a new stake in Caterpillar during the fourth quarter worth approximately $31,000. Rialto Wealth Management LLC increased its position in shares of Caterpillar by 47.4% in the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock worth $32,000 after acquiring an additional 18 shares in the last quarter. Finally, Marquette Asset Management LLC raised its stake in shares of Caterpillar by 1,060.0% in the 3rd quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock valued at $28,000 after acquiring an additional 53 shares during the period. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Price Performance

The company’s fifty day moving average is $623.84 and its two-hundred day moving average is $534.86. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.94 and a current ratio of 1.44. The firm has a market cap of $347.23 billion, a price-to-earnings ratio of 39.43, a price-to-earnings-growth ratio of 1.76 and a beta of 1.58.

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, beating the consensus estimate of $4.67 by $0.49. The firm had revenue of $19.13 billion during the quarter, compared to the consensus estimate of $17.81 billion. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The firm’s quarterly revenue was up 17.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.14 EPS. Equities research analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Tuesday, January 20th will be issued a $1.51 dividend. This represents a $6.04 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Tuesday, January 20th. Caterpillar’s dividend payout ratio is currently 32.09%.

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.