Caterpillar (NYSE:CAT) Shares Up 7.1% – Time to Buy?

Shares of Caterpillar Inc. (NYSE:CAT) shot up 7.1% during mid-day trading on Monday. The stock traded as high as $599.78 and last traded at $598.3460. Approximately 3,682,378 shares changed hands during trading, an increase of 26% from the average daily volume of 2,913,329 shares. The stock had previously closed at $558.63.

Key Headlines Impacting Caterpillar

Here are a few of the latest headlines about CAT:

• Positive Sentiment: A reported $3.4 billion generator agreement with Anthropic could add to Caterpillar’s Power & Energy backlog, benefiting from rising electricity demand for AI data centers. Caterpillar Is the Quiet Winner in Anthropic’s IPO: a $3.4 Billion Generator Order
• Positive Sentiment: Caterpillar reported record third-quarter revenue of $20.682 billion and net income of $3.287 billion, and reaffirmed expectations for full-year 2026 sales and revenue growth in the mid-to-high teens. That performance offers a fundamental counterpoint to recent share-price pressure. How AI Power Order Will Impact Caterpillar Investors
• Neutral Sentiment: Bank of America kept its Buy rating while warning that Caterpillar’s valuation could face further pressure if data-center investment remains uncertain. The bank noted the earnings multiple had dropped from 30 to 17. Caterpillar faces further valuation risks despite machinery strength, Bank of America warns

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on CAT shares. Freedom Broker cut their price objective on shares of Caterpillar from $980.00 to $800.00 and set a “buy” rating on the stock in a research report on Monday, November 2nd. Zacks Research downgraded Caterpillar from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Royal Bank Of Canada cut their price target on Caterpillar from $897.00 to $722.00 and set a “sector perform” rating on the stock in a report on Friday, October 30th. Barclays lifted their target price on Caterpillar from $800.00 to $900.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. Finally, Citigroup cut their target price on Caterpillar from $950.00 to $800.00 and set a “buy” rating on the stock in a research note on Friday, October 30th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat, Caterpillar currently has a consensus rating of “Moderate Buy” and an average target price of $898.25.

Caterpillar Stock Up 2.9%

The firm has a market cap of $275.36 billion, a P/E ratio of 23.61, a price-to-earnings-growth ratio of 1.04 and a beta of 1.65. The company has a quick ratio of 0.88, a current ratio of 1.42 and a debt-to-equity ratio of 1.50. The firm has a fifty day moving average of $751.89 and a 200-day moving average of $805.68.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Thursday, October 29th. The industrial products company reported $7.20 earnings per share for the quarter, beating analysts’ consensus estimates of $7.06 by $0.14. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. The firm had revenue of $20.68 billion during the quarter, compared to the consensus estimate of $20.76 billion. During the same period last year, the company earned $4.95 earnings per share. The business’s revenue was up 17.3% compared to the same quarter last year. On average, equities research analysts anticipate that Caterpillar Inc. will post 27.38 earnings per share for the current year.

Caterpillar Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Monday, October 26th will be issued a dividend of $1.63 per share. The ex-dividend date is Monday, October 26th. This represents a $6.52 dividend on an annualized basis and a yield of 1.1%. Caterpillar’s dividend payout ratio (DPR) is presently 25.58%.

Insider Transactions at Caterpillar

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the business’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the transaction, the chief executive officer owned 34,555 shares of the company’s stock, valued at $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director C Jr acquired 1,000 shares of the company’s stock in a transaction on Monday, November 2nd. The stock was acquired at an average price of $620.39 per share, for a total transaction of $620,390.00. Following the purchase, the director directly owned 4,714 shares of the company’s stock, valued at approximately $2,924,518.46. This trade represents a 26.93% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

Several institutional investors and hedge funds have recently modified their holdings of CAT. Advisors Asset Management Inc. acquired a new stake in Caterpillar during the 3rd quarter worth approximately $59,708,000. Edmond DE Rothschild Holding S.A. grew its holdings in Caterpillar by 218.6% in the 3rd quarter. Edmond DE Rothschild Holding S.A. now owns 14,901 shares of the industrial products company’s stock valued at $12,082,000 after buying an additional 10,224 shares in the last quarter. Private Wealth Asset Management LLC grew its holdings in Caterpillar by 22.1% in the 3rd quarter. Private Wealth Asset Management LLC now owns 16,834 shares of the industrial products company’s stock valued at $13,649,000 after buying an additional 3,051 shares in the last quarter. Greenline Wealth Management LLC increased its position in Caterpillar by 25.9% during the 3rd quarter. Greenline Wealth Management LLC now owns 699 shares of the industrial products company’s stock worth $567,000 after buying an additional 144 shares during the period. Finally, WealthTrust Axiom LLC lifted its holdings in shares of Caterpillar by 8.9% during the third quarter. WealthTrust Axiom LLC now owns 1,789 shares of the industrial products company’s stock worth $1,450,000 after buying an additional 146 shares in the last quarter. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Company Profile

Caterpillar Inc. is a global manufacturer of construction and mining equipment, engines, turbines, and related products and services. Its offerings include earthmoving and material-handling machines, diesel and natural gas engines, power-generation systems, and equipment and technologies used in mining and transportation. The company’s products are commonly sold under the Cat brand. Caterpillar serves customers in markets around the world through a network of independent dealers. Its businesses also provide parts, maintenance, equipment rental, and other support services, as well as financing and insurance through its financial services operations.