Caterpillar (NYSE:CAT) Stock Gets Price Target Cut from Oppenheimer

Caterpillar (NYSE:CAT) had its price target cut by investment analysts at Oppenheimer from $1,118.00 to $1,009.00 in a research report issued on Wednesday, Benzinga reports. The firm currently has an “outperform” rating on the industrial products company’s stock. Oppenheimer’s price target suggests a potential upside of 34.76% from the company’s current price.

A number of other research firms also recently commented on CAT. Royal Bank Of Canada boosted their price objective on Caterpillar from $877.00 to $897.00 and gave the stock a “sector perform” rating in a research note on Wednesday, August 5th. Truist Financial cut their price objective on Caterpillar from $1,225.00 to $1,100.00 and set a “buy” rating for the company in a report on Monday, October 5th. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $749.00 target price on shares of Caterpillar in a research note on Wednesday. UBS Group raised their target price on Caterpillar from $900.00 to $925.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Finally, DA Davidson lifted their target price on Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a report on Thursday, August 6th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $967.83.

Caterpillar Price Performance

NYSE:CAT traded down $24.04 during midday trading on Wednesday, hitting $748.74. 1,584,219 shares of the stock were exchanged, compared to its average volume of 2,808,077. Caterpillar has a one year low of $510.21 and a one year high of $1,073.46. The company has a market capitalization of $344.18 billion, a price-to-earnings ratio of 32.23, a P/E/G ratio of 1.38 and a beta of 1.58. The business has a 50-day moving average price of $819.49 and a two-hundred day moving average price of $855.64. 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 (NYSE:CAT) last released 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 the consensus estimate of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The firm’s revenue for the quarter was up 23.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $4.72 earnings per share. Sell-side analysts predict that Caterpillar will post 27.49 EPS for the current year.

Insider Buying and Selling

In related news, CEO Joseph E. Creed sold 32,401 shares of the firm’s stock in a transaction that occurred 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 in the company, valued at approximately $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.33% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. BlackRock Inc. bought a new position in shares of Caterpillar during the 2nd quarter worth approximately $40,457,153,000. State Street Corp boosted its stake in Caterpillar by 4.0% in the 2nd quarter. State Street Corp now owns 36,276,960 shares of the industrial products company’s stock valued at $37,120,529,000 after buying an additional 1,396,356 shares in the last quarter. Bank of America Corp DE bought a new stake in Caterpillar in the second quarter valued at $5,818,150,000. Diamant Asset Management Inc. grew its position in Caterpillar by 68,427.2% in the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company’s stock valued at $2,224,992,000 after acquiring an additional 3,136,020 shares during the period. Finally, Invesco Ltd. raised its stake in Caterpillar by 2.3% during the fourth quarter. Invesco Ltd. now owns 3,031,666 shares of the industrial products company’s stock worth $1,736,750,000 after acquiring an additional 68,770 shares in the last quarter. Institutional investors own 70.98% of the company’s stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Dividend maintained: Caterpillar’s board kept its quarterly dividend at $1.63 per share, payable Nov. 19. The uninterrupted dividend history provides ongoing income support and signals confidence in cash generation. Caterpillar Inc. Maintains Dividend
• Positive Sentiment: Long-term growth initiatives: A planned $1 billion manufacturing investment in North Carolina, the proposed Fabick Cat acquisition and demand from infrastructure and data-center construction could support future revenue and operating cash flow. Caterpillar Stock May Be Undervalued
• Neutral Sentiment: Heavy investor attention: Caterpillar remains one of the most-watched stocks on Zacks, reflecting heightened interest after its significant multiyear rally and recent pullback. Caterpillar Attracting Investor Attention
• Negative Sentiment: Target and earnings-estimate cuts: Citi and Truist reportedly lowered their price targets, while Erste Group reduced its FY2027 EPS forecast to $32.14 from $32.28 and maintained a Hold rating. These actions reinforce concerns about limited near-term upside. Caterpillar Target Cuts
• Negative Sentiment: Valuation and concentration risks: CAT trades at a premium earnings multiple versus the broader market, requiring continued strong growth. Investors are increasingly concerned that the premium attached to its data-center power business may be unwinding and that reliance on a narrow project category could expose results to a slowdown. What Could Derail Caterpillar Stock

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.

The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.