Caterpillar (NYSE:CAT) Price Target Cut to $722.00 by Analysts at Royal Bank Of Canada

Caterpillar (NYSE:CAT) had its price target reduced by Royal Bank Of Canada from $897.00 to $722.00 in a research report released on Friday,Benzinga reports. They currently have a sector perform rating on the industrial products company’s stock.

Several other analysts also recently issued reports on CAT. Barclays raised their price objective on shares of Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 6th. President Capital began coverage on Caterpillar in a research note on Friday, September 18th. They set a “buy” rating and a $999.00 target price on the stock. Sanford C. Bernstein reiterated a “market perform” rating and issued a $749.00 price target on shares of Caterpillar in a report on Wednesday, October 14th. Wells Fargo & Company decreased their price target on Caterpillar from $1,155.00 to $840.00 and set an “overweight” rating for the company in a research note on Monday. Finally, Oppenheimer restated an “outperform” rating and set a $1,009.00 price objective on shares of Caterpillar in a report on Thursday. Fifteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $913.96.

Caterpillar Trading Down 3.8%

Shares of CAT opened at $622.73 on Friday. The company’s fifty day simple moving average is $783.25 and its 200-day simple moving average is $807.52. The company has a market cap of $286.25 billion, a P/E ratio of 24.43, a P/E/G ratio of 1.11 and a beta of 1.58. The company has a current ratio of 1.42, a quick ratio of 0.85 and a debt-to-equity ratio of 1.50. Caterpillar has a twelve month low of $537.08 and a twelve month high of $1,073.46.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, topping analysts’ consensus estimates of $7.06 by $0.14. The firm had revenue of $20.68 billion during the quarter, compared to analysts’ expectations of $20.76 billion. Caterpillar had a net margin of 15.21% and a return on equity of 59.87%. The firm’s revenue for the quarter was up 17.3% compared to the same quarter last year. During the same period in the previous year, the company earned $4.95 EPS. As a group, analysts expect that Caterpillar will post 27.74 EPS for the current year.

Caterpillar Dividend Announcement

The business also recently disclosed 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 1.0%. Caterpillar’s dividend payout ratio (DPR) is presently 28.06%.

Insiders Place Their Bets

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the business’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the sale, the chief executive officer directly owned 34,555 shares of the company’s stock, valued at $27,954,303.90. The trade was a 48.39% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 0.33% of the stock is owned by insiders.

Hedge Funds Weigh In On Caterpillar

A number of institutional investors have recently modified their holdings of the stock. Decker Retirement Planning Inc. raised its position in shares of Caterpillar by 440.0% in the 2nd 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 in the last quarter. Matrix Trust Co boosted its position in Caterpillar by 93.8% during the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after purchasing an additional 15 shares in the last quarter. Axiom Investment Management LLC bought a new stake in Caterpillar during the second quarter valued at about $36,000. PFS Partners LLC grew its stake in Caterpillar by 1,750.0% in the third quarter. PFS Partners LLC now owns 37 shares of the industrial products company’s stock valued at $30,000 after purchasing an additional 35 shares during the last quarter. Finally, Tacita Capital Inc bought a new position in Caterpillar in the second quarter worth about $47,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar reported third-quarter sales and revenues of approximately $20.7 billion, up 17% year over year, while adjusted earnings per share of $7.20 exceeded the $7.06 consensus estimate. Power-generation sales increased 30%, helped by data-center demand, and the company reported a record $78.1 billion backlog. Caterpillar Reports Third-Quarter 2026 Results
• Positive Sentiment: Truist Financial reaffirmed its “buy” rating, while Citigroup maintained a “buy” rating despite lowering its price target to $800. Both targets remain above the current trading level, suggesting some analysts see substantial long-term upside.
• Neutral Sentiment: Bank of America said Caterpillar’s earnings power remains intact, and analysts expect revenue and EPS growth as the backlog converts. However, the backlog may extend into 2029–2030, meaning investors could wait longer for the full financial benefit.
• Negative Sentiment: Management left its annual growth outlook unchanged and indicated only “moderate” fourth-quarter revenue growth. Investors had expected a stronger forecast or an upgrade, so the unchanged guidance overshadowed the earnings beat. Caterpillar Tops Quarterly Profit View
• Negative Sentiment: Revenue came in slightly below consensus, while tariff expenses and rising inventories added to concerns about costs, demand timing and near-term margins.
• Negative Sentiment: Several firms reduced their targets: Morgan Stanley cut its target to $675 and rated CAT “equal weight,” RBC lowered its target to $722 with a “sector perform” rating, and Truist reduced its target to $1,027. These cuts reinforce concerns that the stock’s premium valuation had become difficult to justify without faster growth.

Caterpillar Company Profile

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.