Caterpillar (NYSE:CAT) Lowered to Hold Rating by Zacks Research

Caterpillar (NYSE:CAT) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued on Tuesday,Zacks.com reports. Zacks Research also issued estimates for Caterpillar’s Q3 2026 earnings at $6.36 EPS, Q4 2026 earnings at $6.61 EPS, FY2026 earnings at $24.51 EPS, Q1 2027 earnings at $6.15 EPS, Q2 2027 earnings at $7.17 EPS, Q3 2027 earnings at $7.46 EPS, Q4 2027 earnings at $8.22 EPS, FY2027 earnings at $29.01 EPS, Q1 2028 earnings at $7.57 EPS, Q2 2028 earnings at $8.77 EPS and FY2028 earnings at $34.31 EPS.

Several other research analysts have also recently issued reports on CAT. Daiwa Securities Group upped their price target on Caterpillar from $790.00 to $900.00 and gave the company a “neutral” rating in a report on Friday, May 1st. Weiss Ratings restated a “buy (b-)” rating on shares of Caterpillar in a report on Friday, May 8th. HSBC boosted their target price on Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. DA Davidson upped their target price on Caterpillar from $650.00 to $845.00 and gave the company a “neutral” rating in a report on Monday, May 4th. Finally, Oppenheimer lifted their price target on Caterpillar from $980.00 to $1,105.00 and gave the stock an “outperform” rating in a research note on Monday. Fifteen analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat.com, Caterpillar has an average rating of “Moderate Buy” and an average target price of $980.57.

Caterpillar Price Performance

Shares of NYSE CAT opened at $914.19 on Tuesday. Caterpillar has a twelve month low of $403.32 and a twelve month high of $1,073.46. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. The firm has a 50-day moving average of $931.98 and a two-hundred day moving average of $790.77. The company has a market capitalization of $421.07 billion, a price-to-earnings ratio of 45.50, a PEG ratio of 1.83 and a beta of 1.57.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business had revenue of $17.41 billion for the quarter, compared to the consensus estimate of $16.53 billion. During the same period in the previous year, the firm earned $4.25 EPS. The business’s revenue for the quarter was up 22.2% on a year-over-year basis. As a group, analysts expect that Caterpillar will post 24.85 earnings per share for the current fiscal year.

Insider Transactions at Caterpillar

In other news, insider Jason Kaiser sold 5,642 shares of the business’s stock in a transaction on Monday, May 4th. The shares were sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the transaction, the insider directly owned 9,594 shares in the company, valued at $8,471,789.82. The trade was a 37.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Denise C. Johnson sold 12,605 shares of the company’s stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the transaction, the insider directly owned 49,825 shares in the company, valued at $45,236,615.75. This trade represents a 20.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Lam Group Inc. acquired a new stake in shares of Caterpillar during the 1st quarter valued at about $26,000. Torren Management LLC bought a new position in Caterpillar during the fourth quarter valued at approximately $27,000. Frazier Financial Advisors LLC raised its position in Caterpillar by 220.0% during the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after acquiring an additional 33 shares in the last quarter. IFS Advisors LLC acquired a new stake in Caterpillar in the fourth quarter valued at approximately $31,000. Finally, Rialto Wealth Management LLC grew its position in Caterpillar by 47.4% in the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock worth $32,000 after acquiring an additional 18 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research lifted Caterpillar’s forward earnings estimates across multiple quarters and fiscal years, signaling expectations for stronger profitability ahead.
• Positive Sentiment: The firm reiterated a Strong-Buy rating on Caterpillar, which can reinforce bullish sentiment toward the stock.
• Neutral Sentiment: Wall Street is still expecting Caterpillar to report a double-digit rise in second-quarter profits when the company reports earnings soon.
• Negative Sentiment: CAT has been under pressure recently, with the stock closing lower in the latest session and trading below its recent level, suggesting broader market or valuation concerns may still be weighing on shares.

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.