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-four research firms that are presently covering the stock, MarketBeat.com reports. One investment analyst has rated the stock with a sell rating, seven have given a hold rating and sixteen have issued a buy rating on the company. The average 1 year price target among analysts that have updated their coverage on the stock in the last year is $702.95.

A number of research firms have commented on CAT. UBS Group restated a “neutral” rating and set a $677.00 price objective on shares of Caterpillar in a research note on Monday, February 2nd. Morgan Stanley raised their price target on Caterpillar from $400.00 to $425.00 and gave the stock an “underweight” rating in a research report on Tuesday, February 3rd. Bank of America boosted their price target on Caterpillar from $735.00 to $825.00 and gave the company a “buy” rating in a research note on Tuesday. Evercore increased their price objective on shares of Caterpillar from $476.00 to $630.00 and gave the stock an “outperform” rating in a research note on Monday, November 17th. Finally, Royal Bank Of Canada increased their price target on shares of Caterpillar from $587.00 to $658.00 and gave the stock a “sector perform” rating in a research report on Friday, January 30th.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Multiple analyst upgrades and higher price targets lift the outlook — Bank of America raised its CAT target to $825 and Argus boosted its target to $820 with a buy rating, supporting upside vs. peers. Bank of America Raises CAT Price Target Argus Raises Target
• Positive Sentiment: Press and research lift the narrative that CAT is a beneficiary of structural trends (AI automation in heavy equipment, India infrastructure demand), which supports longer-term revenue exposure. MSN AI Boom Story India Opportunity
• Positive Sentiment: Inclusion in favorable fund and research write-ups (Barron’s coverage noting CAT leading a dividend ETF’s gains; Zacks highlighting CAT as a long-term pick) adds demand from dividend/value and quant investors. Barron’s Dividend ETF Zacks Feature
• Neutral Sentiment: Investor events and analyst reports: CFO Andrew Bonfield will appear at a Barclays conference (potential for new guidance/color) and Yahoo Finance syndicated research summaries published today; likely to generate incremental newsflow but not immediate direction. CFO Barclays Chat Top Research Reports
• Positive Sentiment: Small institutional buying reported (Allegheny Financial Group increased its stake), which is supportive of demand from asset managers. Allegheny Buys
• Negative Sentiment: Insider/insider-adjacent selling filings (recent small sales disclosed) and elevated volume suggest profit-taking after the rally; these sales can weigh on near-term price momentum. Insider Sales 1 Insider Sales 2

Caterpillar Price Performance

Shares of CAT opened at $758.70 on Friday. The company has a market cap of $355.06 billion, a price-to-earnings ratio of 40.31, a PEG ratio of 1.84 and a beta of 1.58. The company has a current ratio of 1.44, a quick ratio of 0.94 and a debt-to-equity ratio of 1.44. The company’s fifty day simple moving average is $630.67 and its 200 day simple moving average is $538.08. Caterpillar has a 1-year low of $267.30 and a 1-year high of $789.81.

Caterpillar (NYSE:CAT) last released its quarterly earnings data 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 for the quarter, compared to analyst estimates of $17.81 billion. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The business’s revenue for the quarter was up 17.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned $5.14 earnings per share. On average, research analysts forecast that Caterpillar will post 19.86 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

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

Insider Activity at Caterpillar

In other news, insider Anthony D. Fassino sold 10,671 shares of the company’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $680.45, for a total value of $7,261,081.95. Following the completion of the transaction, the insider owned 41,151 shares of the company’s stock, valued at $28,001,197.95. This represents a 20.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Lange Bob De sold 22,656 shares of the firm’s stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $720.11, for a total transaction of $16,314,812.16. Following the completion of the transaction, the insider owned 79,953 shares of the company’s stock, valued at approximately $57,574,954.83. This trade represents a 22.08% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 130,545 shares of company stock worth $88,294,733 in the last 90 days. 0.33% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Caterpillar

A number of institutional investors and hedge funds have recently made changes to their positions in CAT. Norges Bank purchased a new position in shares of Caterpillar during the second quarter worth approximately $2,165,899,000. Groupe la Francaise boosted its position in Caterpillar by 82.0% during the second quarter. Groupe la Francaise now owns 27,246 shares of the industrial products company’s stock valued at $10,820,000 after buying an additional 12,278 shares during the period. Union Bancaire Privee UBP SA grew its stake in shares of Caterpillar by 155.9% during the third quarter. Union Bancaire Privee UBP SA now owns 47,231 shares of the industrial products company’s stock valued at $21,014,000 after buying an additional 28,773 shares during the last quarter. Caprock Group LLC purchased a new position in shares of Caterpillar in the third quarter worth about $8,893,000. Finally, ZEGA Investments LLC lifted its stake in shares of Caterpillar by 149.6% in the 3rd quarter. ZEGA Investments LLC now owns 4,184 shares of the industrial products company’s stock valued at $1,996,000 after acquiring an additional 2,508 shares during the last quarter. Institutional investors own 70.98% of the company’s stock.

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.