Citigroup Issues Pessimistic Forecast for Caterpillar (NYSE:CAT) Stock Price

Caterpillar (NYSE:CAT) had its price objective reduced by investment analysts at Citigroup from $950.00 to $800.00 in a report released on Friday, Benzinga reports. The firm currently has a “buy” rating on the industrial products company’s stock. Citigroup‘s price objective indicates a potential upside of 28.47% from the stock’s previous close.

A number of other equities analysts have also recently weighed in on CAT. Weiss Ratings cut Caterpillar from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday. Wall Street Zen upgraded shares of Caterpillar from a “hold” rating to a “buy” rating in a research note on Saturday, October 10th. UBS Group lowered their price target on shares of Caterpillar from $925.00 to $750.00 and set a “neutral” rating for the company in a report on Monday. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $749.00 price target on shares of Caterpillar in a research note on Wednesday, October 14th. Finally, Oppenheimer reiterated an “outperform” rating and issued a $1,009.00 price objective on shares of Caterpillar in a report on Thursday. Fifteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $920.83.

Caterpillar Stock Down 3.8%

NYSE:CAT traded down $24.66 during mid-day trading on Friday, hitting $622.73. The company had a trading volume of 5,139,279 shares, compared to its average volume of 2,858,968. The business has a fifty day simple moving average of $787.07 and a 200-day simple moving average of $807.56. 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 1 year low of $537.08 and a 1 year high of $1,073.46. The firm has a market capitalization of $286.25 billion, a price-to-earnings ratio of 26.80, a PEG ratio of 1.22 and a beta of 1.58.

Caterpillar (NYSE:CAT) last issued its earnings results on Thursday, October 29th. The industrial products company reported $7.20 earnings per share for the quarter, topping the consensus estimate of $7.06 by $0.14. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The company had revenue of $20.68 billion during the quarter, compared to the consensus estimate of $20.76 billion. During the same quarter in the prior year, the business earned $4.95 earnings per share. The company’s revenue was up 17.3% compared to the same quarter last year. Equities analysts forecast that Caterpillar will post 27.74 earnings per share for the current fiscal year.

Insider Buying and Selling at Caterpillar

In other 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 owned 34,555 shares of the company’s stock, valued at approximately $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. MFG Investments LLC acquired a new stake in Caterpillar during the third quarter worth about $308,000. Provenance Wealth Advisors LLC boosted its stake in Caterpillar by 40.1% in the third quarter. Provenance Wealth Advisors LLC now owns 4,488 shares of the industrial products company’s stock valued at $3,639,000 after acquiring an additional 1,285 shares during the period. TrinityBridge Ltd grew its holdings in shares of Caterpillar by 3.6% during the third quarter. TrinityBridge Ltd now owns 19,626 shares of the industrial products company’s stock valued at $15,917,000 after purchasing an additional 689 shares during the last quarter. Lyell Wealth Management LP raised its position in shares of Caterpillar by 0.9% during the 3rd quarter. Lyell Wealth Management LP now owns 36,423 shares of the industrial products company’s stock worth $29,532,000 after purchasing an additional 320 shares during the period. Finally, Associated Banc Corp bought a new stake in shares of Caterpillar in the 3rd quarter worth approximately $30,050,000. 70.98% of the stock is owned by institutional investors and hedge funds.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar reported third-quarter sales and revenue of approximately $20.7 billion, up 17% year over year, while adjusted earnings per share of $7.20 exceeded the roughly $7.06 consensus estimate. Higher volume and pricing lifted margins, and the company deployed $2 billion toward dividends and share repurchases. Caterpillar Reports Third-Quarter 2026 Results
• Positive Sentiment: Demand tied to data-center infrastructure remains a major growth driver. Power-generation sales rose about 30%, and Caterpillar highlighted a record backlog of roughly $78 billion extending into 2029–2030, supporting expectations for continued revenue and margin growth. Caterpillar Posts Highest Sales Quarter Ever
• Neutral Sentiment: Several analysts still see upside from current levels. Truist reaffirmed its “buy” rating with a $1,027 target, while RBC assigned “sector perform” and Morgan Stanley assigned “equal weight.” However, both RBC and Morgan Stanley sharply reduced their targets to $722 and $675, respectively, signaling diminished confidence in near-term appreciation.
• Negative Sentiment: Revenue of $20.68 billion narrowly missed expectations of $20.76 billion, and management maintained its full-year sales outlook instead of raising it. The company expects only moderate fourth-quarter revenue growth, disappointing investors who had priced in a stronger benefit from AI-related infrastructure spending. Caterpillar Sales Jump, but Wall Street Wanted More
• Negative Sentiment: Rising tariff costs, higher inventories, extended backlog-conversion timelines and Caterpillar’s elevated valuation are adding pressure. Investors appear concerned that much of the AI-power opportunity is already reflected in the share price, making even strong results insufficient without a more optimistic forecast.

Caterpillar Company Profile

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.