Caterpillar (NYSE:CAT) Trading Up 2.3% – Time to Buy?

Caterpillar Inc. (NYSE:CAT)’s stock price traded up 2.3% during trading on Monday . The stock traded as high as $835.34 and last traded at $833.4740. 3,259,589 shares traded hands during trading, an increase of 12% from the average daily volume of 2,916,865 shares. The stock had previously closed at $814.81.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Record results exceeded expectations. Second-quarter sales and revenue rose 24% year over year to $20.5 billion, Caterpillar’s first quarter above $20 billion. Adjusted profit per share reached $8.17, well ahead of the roughly $6.22 consensus estimate, with higher equipment volume and pricing supporting the beat. Caterpillar Reports Second-Quarter 2026 Results
• Positive Sentiment: AI infrastructure is driving power-equipment demand. The power and energy segment generated approximately $8.2 billion in sales and produced more segment profit than Caterpillar’s construction-equipment business, as data-center operators purchased power-generation and backup equipment. Caterpillar Now Makes Almost as Much Selling Power as It Does Selling Construction Equipment
• Positive Sentiment: Management raised its 2026 sales outlook. Caterpillar cited a record backlog above $72 billion, broadening demand across segments and additional power capacity as reasons to expect stronger second-half growth. The outlook now calls for revenue growth in the mid-to-high teens, up from the prior low-double-digit forecast. CAT Q2 Earnings Call Focuses on Backlog and Capacity Growth
• Positive Sentiment: Shareholder returns and analyst support add to the bullish case. Caterpillar deployed $2.2 billion for dividends and share repurchases during the quarter. Truist raised its price target to $1,225 and maintained a Buy rating. Truist Caterpillar Price Target Update
• Neutral Sentiment: The results suggest Caterpillar is becoming increasingly exposed to data-center and power-infrastructure investment, potentially diversifying its traditional construction and mining cycle while increasing sensitivity to AI-related capital-spending trends.
• Negative Sentiment: Valuation is a key risk. At more than 30 times forward earnings and a roughly 3.2% free-cash-flow yield, CAT appears expensive relative to sector medians and risk-free assets. Any slowdown in data-center spending or a return to normal cyclical demand could pressure medium-term returns. Caterpillar Valuation Analysis

Wall Street Analysts Forecast Growth

CAT has been the topic of a number of research analyst reports. Bank of America boosted their price target on Caterpillar from $930.00 to $989.00 and gave the company a “buy” rating in a report on Friday, May 1st. DA Davidson boosted their target price on Caterpillar from $650.00 to $845.00 and gave the company a “neutral” rating in a research note on Monday, May 4th. Citigroup raised their price target on Caterpillar from $1,020.00 to $1,100.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Robert W. Baird set a $970.00 price target on shares of Caterpillar in a report on Wednesday. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $1,002.00 target price on shares of Caterpillar in a research report on Wednesday. Thirteen equities research 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 has a consensus rating of “Moderate Buy” and a consensus target price of $989.00.

Caterpillar Trading Down 0.5%

The stock’s fifty day simple moving average is $922.93 and its two-hundred day simple moving average is $815.89. The firm has a market cap of $401.64 billion, a PE ratio of 43.41, a PEG ratio of 1.62 and a beta of 1.60. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm’s quarterly revenue was up 23.7% compared to the same quarter last year. During the same quarter in the prior year, the business posted $4.72 EPS. On average, sell-side analysts forecast that Caterpillar Inc. will post 24.87 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be paid a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, July 20th. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s dividend payout ratio (DPR) is presently 32.45%.

Insider Buying and Selling at Caterpillar

In related news, insider Denise C. Johnson sold 12,605 shares of Caterpillar stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the sale, the insider directly owned 49,825 shares in the company, valued at approximately $45,236,615.75. This trade represents a 20.19% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO William E. Schaupp sold 360 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total transaction of $326,160.00. Following the completion of the sale, the chief accounting officer owned 530 shares in the company, valued at $480,180. This represents a 40.45% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 35,444 shares of company stock worth $32,335,679. 0.33% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Caterpillar

Institutional investors have recently made changes to their positions in the business. 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. Matrix Trust Co increased its holdings in shares of Caterpillar by 93.8% in the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock worth $33,000 after purchasing an additional 15 shares during the last quarter. Axiom Investment Management LLC bought a new position in shares of Caterpillar during the 2nd quarter valued at approximately $36,000. Lam Group Inc. purchased a new position in shares of Caterpillar in the 1st quarter worth $26,000. Finally, Ramsey Quantitative Systems bought a new stake in Caterpillar during the second quarter worth approximately $48,000. 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.