Caterpillar Inc. (NYSE:CAT) Receives $995.52 Average Target Price from Analysts

Shares of Caterpillar Inc. (NYSE:CAT) have earned a consensus recommendation of “Moderate Buy” from the twenty-five research firms that are presently covering the company, Marketbeat Ratings reports. Twelve equities research analysts have rated the stock with a hold recommendation and thirteen have assigned a buy recommendation to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $995.5238.

CAT has been the topic of a number of analyst reports. Zacks Research cut shares of Caterpillar from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. Rothschild & Co Redburn increased their price target on shares of Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Daiwa Securities Group lifted their price objective on shares of Caterpillar from $790.00 to $900.00 and gave the company a “neutral” rating in a report on Friday, May 1st. Wells Fargo & Company upped their price objective on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 23rd. Finally, JPMorgan Chase & Co. increased their target price on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the stock an “overweight” rating in a research note on Wednesday, June 17th.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: AI and data-center demand are accelerating growth. Caterpillar’s quarterly sales surpassed $20 billion as demand for generators used in data centers increased, reinforcing expectations that AI infrastructure spending can support the company’s Energy & Transportation business. Caterpillar sales surpass $20B as data center generators take off
• Positive Sentiment: Record results and backlog support the bullish outlook. Caterpillar’s Q2 earnings significantly exceeded expectations, with revenue up 23.7% year over year, while a reported $72 billion backlog and raised 2026 outlook provide visibility into future sales and earnings. Should You Buy, Sell or Hold Caterpillar Stock Post Q2 Earnings?
• Positive Sentiment: Analysts are modestly raising earnings expectations. Erste Group Bank increased its FY2026 EPS estimate to $24.78 from $24.56 and its FY2027 estimate to $31.18 from $30.31, reflecting improved expectations despite maintaining a Hold rating. Caterpillar analyst estimates
• Neutral Sentiment: Production capacity is becoming the key execution issue. Caterpillar has major engines and turbines booked years ahead, but the pace at which it can expand output at existing facilities may determine how much of the demand opportunity converts into additional revenue and profit. Caterpillar Stock’s Upside Is Sitting in Plants It Already Owns
• Negative Sentiment: Valuation leaves limited room for disappointment. After a substantial five-year gain, valuation models present a mixed picture, with one analysis suggesting CAT is approximately 6% overvalued. Investors are weighing whether AI-related optimism and heavy-equipment demand are already reflected in the share price. Caterpillar (CAT) Stock Could Be 6% Overvalued As AI Demand Lifts Outlook

Insider Transactions at Caterpillar

In other news, insider Denise C. Johnson sold 12,605 shares of the firm’s stock in a transaction that occurred on 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 transaction, the insider 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 transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Lam Group Inc. purchased a new stake in Caterpillar during the first quarter worth about $26,000. Torren Management LLC acquired a new position in Caterpillar in the 4th quarter valued at about $27,000. Frazier Financial Advisors LLC lifted its position in Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 33 shares during the period. Decker Retirement Planning Inc. grew its stake in shares of Caterpillar by 440.0% in the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after purchasing an additional 22 shares during the last quarter. Finally, Cornerstone Financial Management LLC purchased a new position in shares of Caterpillar in the 4th quarter valued at approximately $32,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Stock Up 0.9%

NYSE:CAT opened at $844.74 on Friday. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. Caterpillar has a twelve month low of $405.46 and a twelve month high of $1,073.46. The company has a market cap of $388.30 billion, a PE ratio of 36.35, a P/E/G ratio of 1.50 and a beta of 1.60. The company’s 50 day moving average is $919.15 and its two-hundred day moving average is $823.23.

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 analysts’ consensus estimates 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 return on equity of 55.53% and a net margin of 14.51%.The firm’s revenue was up 23.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $4.72 EPS. Analysts anticipate that Caterpillar will post 26.56 EPS for the current year.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be issued a dividend of $1.63 per share. The ex-dividend date of this dividend is Monday, July 20th. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a yield of 0.8%. Caterpillar’s payout ratio is 28.06%.

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.