Freedom Broker Upgrades Caterpillar (NYSE:CAT) to Buy

Caterpillar (NYSE:CAT) was upgraded by stock analysts at Freedom Broker from a “hold” rating to a “buy” rating in a research note issued on Thursday, Benzinga reports. The brokerage presently has a $980.00 target price on the industrial products company’s stock. Freedom Broker’s price target points to a potential upside of 20.04% from the stock’s current price.

A number of other research firms have also issued reports on CAT. Rothschild & Co Redburn boosted their price objective on Caterpillar from $700.00 to $950.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. Weiss Ratings upgraded Caterpillar from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday, August 19th. Zacks Research raised Caterpillar from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 12th. Robert W. Baird set a $970.00 price target on Caterpillar in a research report on Wednesday, August 5th. Finally, Oppenheimer reissued an “outperform” rating and issued a $1,118.00 price target on shares of Caterpillar in a report on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $994.17.

Caterpillar Trading Down 0.7%

Shares of Caterpillar stock opened at $816.41 on Thursday. The stock has a market capitalization of $375.28 billion, a P/E ratio of 35.13, a P/E/G ratio of 1.43 and a beta of 1.60. Caterpillar has a 52-week low of $419.50 and a 52-week high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The stock’s 50-day simple moving average is $859.73 and its 200 day simple moving average is $840.13.

Caterpillar (NYSE:CAT) last issued its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts’ consensus estimates of $6.22 by $1.95. The firm had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The company’s quarterly revenue was up 23.7% on a year-over-year basis. During the same quarter last year, the business earned $4.72 earnings per share. As a group, research analysts anticipate that Caterpillar will post 27.37 EPS for the current year.

Insider Activity

In other news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction on Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the sale, the chief executive officer directly owned 34,555 shares of the company’s stock, valued at approximately $27,954,303.90. The trade was a 48.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Hedge funds have recently bought and sold shares of the company. Lam Group Inc. bought a new stake in shares of Caterpillar in the 1st quarter worth approximately $26,000. Frazier Financial Advisors LLC lifted its stake in Caterpillar by 220.0% in the fourth 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. raised its stake in 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 in the last quarter. Cornerstone Financial Management LLC bought a new position in shares of Caterpillar in the 4th quarter worth approximately $32,000. Finally, Matrix Trust Co lifted its position in Caterpillar by 93.8% during the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after buying an additional 15 shares during the period. Institutional investors own 70.98% of the company’s stock.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts raised earnings estimates across multiple periods. Zacks Research increased its forecasts for Q3 2026, FY2026, FY2027 and FY2028, including FY2027 EPS from $30.14 to $31.43 and FY2028 EPS from $35.97 to $36.64. Zacks maintained a “Strong Buy” rating, signaling improved expectations for Caterpillar’s earnings trajectory. Caterpillar analyst estimate updates
• Positive Sentiment: AI and automation could create a new growth avenue. Caterpillar’s collaboration with FieldAI is intended to advance physical AI, autonomy and robotics for construction and other heavy-equipment applications. The partnership supports the company’s strategy to improve job-site safety, efficiency and equipment productivity. Caterpillar FieldAI partnership
• Positive Sentiment: Industrial-sector momentum is supporting the Caterpillar story. Coverage points to lean inventories and steady U.S. manufacturing activity as favorable conditions for Caterpillar. Piper Sandler also identified CAT and other industrial companies as potential beneficiaries of a rotation away from highly valued AI leaders and toward companies with tangible earnings and infrastructure exposure. Piper Sandler industrial rotation analysis
• Neutral Sentiment: CAT has significantly outperformed many industrial stocks. Articles comparing Caterpillar with Gorman-Rupp and the broader industrial-products sector highlight its strong year-to-date performance, reinforcing investor interest but also raising expectations for continued execution. Caterpillar industrial stock comparison
• Negative Sentiment: Valuation and interest-rate risk remain concerns. CAT’s roughly 35-times earnings valuation leaves less room for disappointment after its substantial annual advance. Rising 10-year Treasury yields—particularly a move toward 5%—could pressure expensive equities and increase financing costs for construction and mining customers. Caterpillar valuation analysis

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction, mining, and industrial equipment. The company’s products include excavators, dozers, wheel loaders, motor graders, articulated trucks, and off-highway trucks, as well as related attachments and work tools. Caterpillar also supplies replacement parts, equipment services, technology solutions, and rental support through its dealer network.

The company serves customers in construction, mining, quarrying, energy, transportation, forestry, agriculture, and government-related industries.