Caterpillar (NYSE:CAT) Trading 1.7% Higher – Here’s Why

Shares of Caterpillar Inc. (NYSE:CAT) were up 1.7% during trading on Friday . The stock traded as high as $832.00 and last traded at $828.90. 2,434,610 shares traded hands during trading, a decline of 16% from the average session volume of 2,914,494 shares. The stock had previously closed at $815.39.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Higher full-year earnings forecasts: Zacks Research raised its FY2026 EPS estimate to $26.55 from $24.51 and its Q2 2027 estimate to $7.90 from $7.17. Zacks maintained a “Strong Buy” rating, signaling confidence in Caterpillar’s earnings trajectory. Zacks Research Forecasts Stronger Earnings for Caterpillar
• Positive Sentiment: $392 million tariff refund: Caterpillar received a significant refund as duty costs declined. The benefit partially offsets approximately $400 million in tariff expenses incurred during the quarter ended June 30 and could support near-term profitability and cash flow. Caterpillar bags $392M tariff refund as duty costs shrink
• Positive Sentiment: Constructive market backdrop: Expectations for continued S&P 500 strength, resilient earnings growth and potential AI-related capital spending are supportive for industrial companies such as Caterpillar. 5 Reasons the S&P 500 Could Keep Rallying Through Year-End
• Neutral Sentiment: High volatility remains a trading risk: Options activity indicates Caterpillar’s stock could experience unusually large moves in either direction, increasing uncertainty despite favorable fundamental projections. Caterpillar Stock Is Priced To Swing Hundreds Of Dollars Either Way
• Negative Sentiment: AI data-center backlash: Proposed restrictions and political resistance to AI-related power demand in Texas and New York could delay or reduce data-center construction. That creates a risk for Caterpillar’s power-generation and related equipment demand, prompting investors to reassess the company’s growth outlook. What Is Caterpillar Facing As AI Data Center Backlash Grows?
• Negative Sentiment: Near-term estimate reduction: Zacks lowered its Q4 2026 EPS forecast to $6.47 from $6.61, suggesting some caution around the next quarterly results even though its full-year and longer-term estimates improved. Caterpillar analyst estimates

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on the stock. Jefferies Financial Group raised their price objective on shares of Caterpillar from $900.00 to $1,045.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Wall Street Zen raised shares of Caterpillar from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. Bank of America raised their price target on shares of Caterpillar from $930.00 to $989.00 and gave the company a “buy” rating in a report on Friday, May 1st. Daiwa Securities Group upped their price objective on Caterpillar from $790.00 to $900.00 and gave the stock a “neutral” rating in a report on Friday, May 1st. Finally, Truist Financial set a $980.00 price objective on Caterpillar in a research report on Wednesday, August 5th. 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 stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $995.52.

Caterpillar Trading Up 1.7%

The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The company has a market capitalization of $381.02 billion, a price-to-earnings ratio of 35.67, a P/E/G ratio of 1.43 and a beta of 1.60. The business’s 50-day simple moving average is $910.49 and its 200-day simple moving average is $833.16.

Caterpillar (NYSE:CAT) last issued its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to analysts’ expectations of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. Caterpillar’s revenue was up 23.7% on a year-over-year basis. During the same quarter in the previous year, the company earned $4.72 EPS. On average, research analysts expect that Caterpillar Inc. will post 27.14 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th were paid a $1.63 dividend. The ex-dividend date of this dividend was Monday, July 20th. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. Caterpillar’s payout ratio is 28.06%.

Institutional Trading of Caterpillar

Several institutional investors and hedge funds have recently made changes to their positions in the business. Safeguard Investment Advisory Group LLC boosted its position in shares of Caterpillar by 31.9% in the 2nd quarter. Safeguard Investment Advisory Group LLC now owns 653 shares of the industrial products company’s stock worth $696,000 after purchasing an additional 158 shares during the last quarter. Orion Capital Management LLC grew its stake in shares of Caterpillar by 4.3% during the second quarter. Orion Capital Management LLC now owns 735 shares of the industrial products company’s stock worth $783,000 after purchasing an additional 30 shares during the period. Round Rock Advisors LLC increased its holdings in Caterpillar by 3.0% in the second quarter. Round Rock Advisors LLC now owns 515 shares of the industrial products company’s stock valued at $548,000 after purchasing an additional 15 shares during the last quarter. Nykredit A S acquired a new position in Caterpillar in the second quarter valued at about $190,920,000. Finally, Sunburst Financial Group LLC lifted its stake in Caterpillar by 19.8% in the second quarter. Sunburst Financial Group LLC now owns 733 shares of the industrial products company’s stock valued at $781,000 after buying an additional 121 shares during the period. Institutional investors own 70.98% of the company’s stock.

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.