Caterpillar (NYSE:CAT) Rating Lowered to “Hold” at Zacks Research

Caterpillar (NYSE:CAT) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a note issued to investors on Monday, Zacks reports. Zacks Research also issued estimates for Caterpillar’s Q3 2026 earnings at $6.78 EPS, Q4 2026 earnings at $6.88 EPS, FY2026 earnings at $27.36 EPS, Q1 2027 earnings at $6.48 EPS, Q2 2027 earnings at $8.52 EPS, Q3 2027 earnings at $8.40 EPS, Q4 2027 earnings at $9.04 EPS, FY2027 earnings at $32.44 EPS and Q3 2028 earnings at $10.16 EPS.

Several other research analysts have also commented on the company. Wells Fargo & Company raised their price target on Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 23rd. JPMorgan Chase & Co. raised their target price on Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. UBS Group lifted their target price on Caterpillar from $900.00 to $925.00 and gave the company a “neutral” rating in a research report on Wednesday, August 5th. DA Davidson boosted their price target on shares of Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Finally, Barclays increased their price target on shares of Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $989.17.

Caterpillar Stock Performance

CAT opened at $864.04 on Monday. Caterpillar has a 52-week low of $483.55 and a 52-week high of $1,073.46. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The firm’s fifty day simple moving average is $822.22 and its two-hundred day simple moving average is $852.27. The company has a market cap of $397.18 billion, a price-to-earnings ratio of 37.18, a PEG ratio of 1.47 and a beta of 1.58.

Caterpillar (NYSE:CAT) last issued its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. The business had revenue of $20.54 billion during the quarter, compared to analysts’ expectations 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% compared to the same quarter last year. During the same period in the prior year, the business earned $4.72 earnings per share. Equities analysts anticipate that Caterpillar will post 27.42 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 dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Several institutional investors and hedge funds have recently made changes to their positions in CAT. Decker Retirement Planning Inc. lifted 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 valued at $29,000 after buying an additional 22 shares during the last quarter. Matrix Trust Co grew its stake in shares of Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after purchasing an additional 15 shares during the last quarter. Axiom Investment Management LLC acquired a new position in shares of Caterpillar in the second quarter valued at approximately $36,000. Lam Group Inc. acquired a new stake in shares of Caterpillar during the first quarter worth $26,000. Finally, Tacita Capital Inc purchased a new position in Caterpillar in the 2nd quarter valued at $47,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research raised EPS estimates across multiple periods, including Q3 2026 to $6.78 from $6.57, FY2026 to $27.36 from $27.01, FY2027 to $32.44 from $31.43, and Q3 2028 to $10.16 from $9.48. The firm maintains a “Strong-Buy” rating, signaling improving expectations for Caterpillar’s earnings trajectory.
• Positive Sentiment: Several market commentaries identify data-center power and infrastructure demand as a growth catalyst for Caterpillar. AI-related construction and electricity requirements could increase demand for the company’s power-generation equipment and support a potential rebound after its recent underperformance. Buy Q3 AI Data Center Laggards CAT, GLW, JBL for a Rebound in Q4
• Positive Sentiment: Jim Cramer described Caterpillar’s pullback as a possible buying opportunity and highlighted the company’s expanding role in supplying power for data centers. His comments may improve retail-investor sentiment, although they are opinion-based rather than a fundamental forecast. Jim Cramer Sees a Possible Buying Opportunity in Caterpillar
• Positive Sentiment: A Seeking Alpha contributor upgraded Caterpillar to “Buy” ahead of earnings, adding another constructive analyst view before the next major catalyst. Caterpillar: Upgrading To Buy Ahead Of Earnings
• Negative Sentiment: Other analysis cautions that the data-center opportunity may already be priced into Caterpillar shares. With the stock trading at a premium valuation, execution risks or weaker-than-expected guidance could limit further gains. Caterpillar: Data Center Tailwinds Are Real, But The Valuation Is Too Steep For Me

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.