Caterpillar (NYSE:CAT) Downgraded to “Hold” Rating by Zacks Research

Zacks Research lowered shares of Caterpillar (NYSE:CAT) from a strong-buy rating to a hold rating in a research note released 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 equities analysts also recently issued reports on the stock. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Caterpillar in a report on Friday, May 8th. Morgan Stanley set a $915.00 price target on shares of Caterpillar and gave the stock an “equal weight” 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. Barclays lifted their price objective on Caterpillar from $700.00 to $800.00 and gave the stock an “equal weight” rating in a report on Friday, May 1st. Finally, UBS Group reissued a “neutral” rating and set a $900.00 target price on shares of Caterpillar in a report on Tuesday, June 2nd. Fifteen equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $980.57.

Caterpillar Stock Performance

Shares of CAT stock opened at $914.19 on Tuesday. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. Caterpillar has a 12-month low of $403.32 and a 12-month high of $1,073.46. The business’s 50 day moving average is $931.98 and its two-hundred day moving average is $790.77. The company has a market capitalization of $421.07 billion, a P/E ratio of 45.50, a P/E/G ratio of 1.83 and a beta of 1.57.

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

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be paid a dividend of $1.63 per share. The ex-dividend date of this dividend is Monday, July 20th. This represents a $6.52 annualized dividend and a yield of 0.7%. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s dividend payout ratio is currently 30.06%.

Insider Buying and Selling

In other Caterpillar news, insider Lange Bob De sold 24,222 shares of the firm’s stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total value of $22,354,968.24. Following the transaction, the insider directly owned 86,029 shares of the company’s stock, valued at $79,397,884.68. This trade represents a 21.97% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the business’s stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the transaction, the chief financial officer owned 52,935 shares in the company, valued at approximately $48,631,913.85. This represents a 22.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 95,773 shares of company stock worth $87,642,635 in the last 90 days. Corporate insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Stonebridge Financial Group LLC raised its stake in shares of Caterpillar by 0.7% during the 2nd quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company’s stock worth $1,741,000 after buying an additional 11 shares in the last quarter. Inspirion Wealth Advisors LLC boosted its stake in shares of Caterpillar by 1.2% in the second quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company’s stock valued at $936,000 after buying an additional 11 shares in the last quarter. Bell Bank grew its holdings in Caterpillar by 0.6% during the second quarter. Bell Bank now owns 1,865 shares of the industrial products company’s stock worth $1,986,000 after acquiring an additional 11 shares during the period. Cornerstone Advisory LLC grew its holdings in Caterpillar by 0.7% during the first quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company’s stock worth $1,288,000 after acquiring an additional 12 shares during the period. Finally, Advisory Resource Group raised its position in Caterpillar by 0.8% in the fourth quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company’s stock worth $935,000 after acquiring an additional 13 shares in the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about 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.

Caterpillar Company Profile

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.