Morgan Stanley Issues Pessimistic Forecast for Caterpillar (NYSE:CAT) Stock Price

Caterpillar (NYSE:CAT) had its price target decreased by research analysts at Morgan Stanley from $915.00 to $675.00 in a report issued on Friday, Benzinga reports. The brokerage currently has an “equal weight” rating on the industrial products company’s stock. Morgan Stanley‘s target price points to a potential upside of 8.26% from the stock’s previous close.

A number of other analysts also recently issued reports on the stock. Zacks Research downgraded shares of Caterpillar from a “strong-buy” rating to a “hold” rating in a report on Monday, October 5th. Weiss Ratings downgraded shares of Caterpillar from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday. Robert W. Baird set a $970.00 price target on shares of Caterpillar in a research note on Wednesday, August 5th. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $749.00 price target on shares of Caterpillar in a report on Wednesday, October 14th. Finally, President Capital started coverage on Caterpillar in a research note on Friday, September 18th. They issued a “buy” rating and a $999.00 price objective on the stock. Fifteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, Caterpillar currently has a consensus rating of “Moderate Buy” and a consensus price target of $927.08.

Caterpillar Stock Down 3.7%

Shares of NYSE CAT traded down $23.91 during mid-day trading on Friday, reaching $623.49. 2,727,287 shares of the company’s stock traded hands, compared to its average volume of 2,846,420. The stock has a market cap of $286.60 billion, a P/E ratio of 26.87, a PEG ratio of 1.22 and a beta of 1.58. The business has a 50-day simple moving average of $787.07 and a 200 day simple moving average of $807.56. Caterpillar has a 1-year low of $537.08 and a 1-year high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, October 29th. The industrial products company reported $7.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.06 by $0.14. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The company had revenue of $20.68 billion during the quarter, compared to analyst estimates of $20.76 billion. During the same period in the prior year, the company posted $4.95 earnings per share. Caterpillar’s quarterly revenue was up 17.3% on a year-over-year basis. On average, analysts expect that Caterpillar will post 27.74 EPS for the current fiscal year.

Insider Buying and Selling

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 value of $26,211,760.98. Following the completion of the sale, the chief executive officer owned 34,555 shares in the company, valued at approximately $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.33% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of CAT. Decker Retirement Planning Inc. raised its stake in shares of Caterpillar by 440.0% in the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock worth $29,000 after buying an additional 22 shares during the period. PFS Partners LLC grew its holdings in Caterpillar by 1,750.0% during the 3rd quarter. PFS Partners LLC now owns 37 shares of the industrial products company’s stock valued at $30,000 after buying an additional 35 shares in the last quarter. Matrix Trust Co increased its holdings in Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after acquiring an additional 15 shares during the last quarter. Cedar Mountain Advisors LLC lifted its stake in Caterpillar by 82.1% in the 1st quarter. Cedar Mountain Advisors LLC now owns 51 shares of the industrial products company’s stock worth $36,000 after purchasing an additional 23 shares in the last quarter. Finally, Axiom Investment Management LLC bought a new position in shares of Caterpillar during the 2nd quarter valued at about $36,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar reported adjusted earnings of $7.20 per share, ahead of the $7.06 consensus, while sales and revenue increased 17% year over year to $20.7 billion. Power-generation sales rose 30%, supported by data-center demand. Caterpillar Reports Third-Quarter 2026 Results
• Positive Sentiment: A record $78.1 billion backlog, with orders extending into 2029–2030, supports expectations for continued revenue growth and margin expansion as AI-related infrastructure projects are delivered. Caterpillar also returned $2 billion through dividends and share repurchases during the quarter. Caterpillar Q3 2026 Earnings Call Transcript
• Positive Sentiment: Truist reaffirmed its “buy” rating and set a $1,027 price target, implying substantial upside despite lowering its previous target from $1,100. Truist Caterpillar Rating
• Neutral Sentiment: Royal Bank of Canada reduced its price target from $897 to $722 and maintained a “sector perform” rating, signaling that the long-term outlook remains constructive but that near-term upside may be limited. RBC Caterpillar Rating
• Negative Sentiment: Revenue of $20.68 billion fell slightly short of expectations, and management maintained its annual growth outlook while forecasting only moderate fourth-quarter revenue growth. Investors had been positioned for a stronger forecast upgrade after the earnings beat. Caterpillar Sales Jump, But Wall Street Wanted More
• Negative Sentiment: Tariff-related costs, rising inventories and concerns about slower backlog conversion are adding pressure. With CAT trading at a premium valuation after a major rally, investors appear unwilling to overlook even modest execution or outlook disappointments. Caterpillar Tumbles as Tariff Costs and Inventories Overshadow Earnings

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.