Caterpillar (NYSE:CAT) Shares Up 1.7% on Analyst Upgrade

Caterpillar Inc. (NYSE:CAT) rose 1.7% during mid-day trading on Tuesday after Citigroup raised their price target on the stock from $760.00 to $785.00. Citigroup currently has a buy rating on the stock. Caterpillar traded as high as $730.79 and last traded at $716.7610. Approximately 3,034,662 shares were traded during mid-day trading, an increase of 1% from the average daily volume of 3,003,102 shares. The stock had previously closed at $704.82.

A number of other research analysts have also commented on the stock. Argus upped their price objective on shares of Caterpillar from $625.00 to $820.00 and gave the company a “buy” rating in a research report on Wednesday, February 11th. Raymond James Financial restated a “market perform” rating on shares of Caterpillar in a research note on Wednesday, January 7th. UBS Group reaffirmed a “neutral” rating and issued a $677.00 price target on shares of Caterpillar in a report on Monday, February 2nd. Truist Financial boosted their price objective on Caterpillar from $729.00 to $786.00 and gave the company a “buy” rating in a research report on Monday, February 2nd. Finally, Wolfe Research upped their target price on Caterpillar from $470.00 to $670.00 and gave the company an “outperform” rating in a research note on Friday, January 2nd. Sixteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Caterpillar presently has a consensus rating of “Moderate Buy” and a consensus target price of $730.50.

Insider Activity at Caterpillar

In other Caterpillar news, insider Rodney Michael Shurman sold 2,278 shares of Caterpillar stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $759.61, for a total transaction of $1,730,391.58. Following the sale, the insider directly owned 1,443 shares of the company’s stock, valued at approximately $1,096,117.23. The trade was a 61.22% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO William E. Schaupp sold 972 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $764.20, for a total value of $742,802.40. Following the completion of the transaction, the chief accounting officer directly owned 824 shares of the company’s stock, valued at approximately $629,700.80. The trade was a 54.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 135,950 shares of company stock valued at $94,327,990. Corporate insiders own 0.33% of the company’s stock.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Large commercial backlog: Atlas Energy Solutions signed agreements securing Caterpillar manufacturing capacity for power-generation equipment worth roughly $840 million through 2029 — a visible multi-year revenue backlog that supports industrial sales and aftermarket demand. Read More.
• Positive Sentiment: Analyst upgrades: Oppenheimer raised its CAT price target to $817 (from $729) and kept an Outperform rating, citing valuation relief and continued earnings power; other shops (Citigroup) also nudged targets higher — these lifts help drive buy-side interest. Read More.
• Positive Sentiment: Additional positive analyst activity and coverage: Citi raised its target to $785 and broker consensus remains bullish/“Moderate Buy,” reinforcing momentum from upgrades. Read More.
• Positive Sentiment: Product & tech story: New heavy electric-drive dozer and management commentary on AI/data initiatives underscore long-term product differentiation and margin opportunities. Read More. Read More.
• Neutral Sentiment: Media and analyst write-ups debating valuation: some pieces highlight a short-term pullback after a strong multi‑year rally, offering both buy-the-dip and profit‑taking narratives for investors to weigh. Read More.
• Negative Sentiment: Insider selling: the CEO reported a sale of about $1.8M in stock, which can be read negatively by some market participants even if routine. Read More.

Institutional Investors Weigh In On Caterpillar

Hedge funds have recently made changes to their positions in the company. Kilter Group LLC bought a new stake in Caterpillar during the second quarter worth about $27,000. Torren Management LLC bought a new position in shares of Caterpillar in the fourth quarter valued at approximately $27,000. Marquette Asset Management LLC boosted its holdings in shares of Caterpillar by 1,060.0% in the 3rd quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 53 shares in the last quarter. Frazier Financial Advisors LLC grew 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 last quarter. Finally, IFS Advisors LLC acquired a new stake in Caterpillar during the 4th quarter valued at $31,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Trading Up 1.7%

The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.94 and a current ratio of 1.44. The stock has a market cap of $333.50 billion, a P/E ratio of 38.09, a P/E/G ratio of 1.61 and a beta of 1.53. The company has a 50-day simple moving average of $683.98 and a 200-day simple moving average of $578.41.

Caterpillar (NYSE:CAT) last announced its earnings results on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, topping the consensus estimate of $4.67 by $0.49. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The company had revenue of $19.13 billion for the quarter, compared to analysts’ expectations of $17.81 billion. During the same quarter in the prior year, the business earned $5.14 earnings per share. The business’s revenue for the quarter was up 17.9% on a year-over-year basis. On average, sell-side analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Caterpillar Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, February 19th. Shareholders of record on Tuesday, January 20th were given a $1.51 dividend. This represents a $6.04 annualized dividend and a yield of 0.8%. The ex-dividend date was Tuesday, January 20th. Caterpillar’s dividend payout ratio (DPR) is presently 32.09%.

About Caterpillar

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.