Caterpillar (NYSE:CAT) Trading Up 1.7% Following Analyst Upgrade

Shares of Caterpillar Inc. (NYSE:CAT) were up 1.7% during mid-day trading on Wednesday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The stock traded as high as $871.20 and last traded at $857.35. Approximately 3,092,870 shares changed hands during mid-day trading, an increase of 6% from the average daily volume of 2,922,312 shares. The stock had previously closed at $843.37.

Other equities analysts also recently issued reports about the stock. Rothschild & Co Redburn increased their price objective on shares of Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a research note on Thursday, May 14th. Oppenheimer reissued an “outperform” rating and set a $1,118.00 price target on shares of Caterpillar in a research report on Tuesday, August 4th. Robert W. Baird set a $970.00 price target on Caterpillar in a research note on Wednesday, August 5th. HSBC boosted their price target on Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. Finally, JPMorgan Chase & Co. increased their price objective on Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, Caterpillar has an average rating of “Moderate Buy” and an average target price of $995.52.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar ended the second quarter with a record $72 billion backlog, supporting the company’s upgraded 2026 sales outlook and suggesting that demand across construction, mining and energy markets remains strong. CAT Ends Q2 With Record Backlog: Is Demand Momentum Here to Stay?
• Positive Sentiment: Recent quarterly results featured approximately $20.5 billion in sales, stronger margins and an improved outlook, reinforcing the investment case despite the stock’s elevated valuation. The Zacks Analyst Blog Highlights Caterpillar, Komatsu, Terex and Astec Industries
• Positive Sentiment: Zacks Research upgraded CAT from “hold” to “strong-buy,” while the average brokerage recommendation remains equivalent to Buy. The company has also been identified as a momentum stock, which may attract additional investor interest. Brokers Suggest Investing in Caterpillar
• Neutral Sentiment: Analysts are cautiously optimistic after CAT’s strong performance over the past year. Investors should note that consensus recommendations can be overly bullish and may not reliably predict future returns. Do Wall Street Analysts Like Caterpillar Stock?
• Negative Sentiment: Caterpillar’s valuation multiple is increasingly dependent on margin expansion because investors already expect its recent revenue boom to moderate. Any disappointment in profitability could pressure the shares. Caterpillar’s Falling Multiple Rests On Margin, Not Its Backlog

Institutional Trading of Caterpillar

A number of hedge funds have recently made changes to their positions in the business. Lam Group Inc. acquired a new position in shares of Caterpillar in the first quarter valued at $26,000. Torren Management LLC acquired a new position in Caterpillar in the 4th quarter valued at about $27,000. Frazier Financial Advisors LLC grew its stake in Caterpillar by 220.0% in the 4th 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 during the last quarter. Decker Retirement Planning Inc. lifted its position in Caterpillar by 440.0% during the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock worth $29,000 after acquiring an additional 22 shares during the last quarter. Finally, Cornerstone Financial Management LLC acquired a new stake in Caterpillar during the fourth quarter worth approximately $32,000. 70.98% of the stock is owned by institutional investors and hedge funds.

Caterpillar Trading Up 0.6%

The business has a fifty day moving average price of $916.05 and a 200-day moving average price of $826.31. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The company has a market cap of $395.29 billion, a P/E ratio of 36.97, a PEG ratio of 1.53 and a beta of 1.60.

Caterpillar (NYSE:CAT) last announced its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts’ consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The firm’s quarterly revenue was up 23.7% compared to the same quarter last year. During the same quarter last year, the company earned $4.72 earnings per share. On average, analysts forecast that Caterpillar Inc. will post 26.56 earnings per share for the current year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be issued a dividend of $1.63 per share. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, July 20th. Caterpillar’s payout ratio is 28.06%.

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.