Caterpillar Inc. (NYSE:CAT) Given Average Recommendation of “Moderate Buy” by Brokerages

Caterpillar Inc. (NYSE:CAT) has received an average rating of “Moderate Buy” from the twenty-six ratings firms that are currently covering the firm, MarketBeat reports. One equities research analyst has rated the stock with a sell recommendation, six have given a hold recommendation, sixteen have issued a buy recommendation and three have issued a strong buy recommendation on the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $623.10.

A number of equities research analysts have recently issued reports on the stock. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Caterpillar in a report on Monday, December 29th. Wells Fargo & Company began coverage on shares of Caterpillar in a report on Thursday, November 13th. They issued an “overweight” rating and a $675.00 price objective for the company. Robert W. Baird raised their target price on shares of Caterpillar from $612.00 to $680.00 and gave the stock an “outperform” rating in a research note on Thursday, October 30th. Erste Group Bank upgraded Caterpillar from a “hold” rating to a “buy” rating in a research report on Friday, October 3rd. Finally, Argus lifted their price objective on Caterpillar from $460.00 to $625.00 and gave the stock a “buy” rating in a research report on Wednesday, November 19th.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Bank of America raised its price target on CAT to $708 and kept a “buy” rating — a meaningful bullish signal from a major shop that can attract flows and support the share price. MarketScreener
• Positive Sentiment: JPMorgan analyst told investors CAT shares are expected to rise, adding institutional conviction to the bullish case and potentially supporting buying interest. Caterpillar (NYSE:CAT) Stock Price Expected to Rise
• Positive Sentiment: Caterpillar announced a partnership with NVIDIA to develop foundations for autonomous systems — this accelerates higher-margin, software-enabled product opportunities (autonomy, telematics) over time. Caterpillar partners with NVIDIA
• Positive Sentiment: Bernstein highlighted CAT as a potential winner if data centers shift to on-site power generation — a new end market for power systems could boost equipment and power solutions demand. Caterpillar is potential winner if data centers move power generation on-site
• Positive Sentiment: Articles emphasizing CAT’s ~30% payout ratio argue its dividend is well-covered and likely sustainable through downturns — supportive for income-focused investors. Caterpillar’s 30% Payout Ratio Shows Why Its Dividend Can Survive the Next Recession
• Neutral Sentiment: Caterpillar set its Q4 and full-year 2025 earnings release for Jan. 29 — this is the next key event risk/opportunity that will likely drive short-term volatility. Caterpillar Inc. to Announce Fourth-Quarter and Full-Year 2025 Financial Results on January 29
• Neutral Sentiment: Zacks highlights industrial stocks that could beat earnings using its Earnings ESP screen — a potential catalyst if CAT is included, but specifics/odds are unclear. These 2 Industrial Products Stocks Could Beat Earnings
• Negative Sentiment: Caterpillar is contesting a patent complaint from Bobcat and the trade commission will investigate — pending legal/ITC outcomes create downside risk and potential remedy costs or product restrictions. Caterpillar Fights Bobcat Patent Complaint; Trade Commission to Investigate

Insider Activity

In other news, insider Anthony D. Fassino sold 8,184 shares of Caterpillar stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $570.18, for a total transaction of $4,666,353.12. Following the sale, the insider owned 41,512 shares of the company’s stock, valued at approximately $23,669,312.16. The trade was a 16.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of the stock in a transaction that occurred on Wednesday, December 31st. The stock was sold at an average price of $575.06, for a total value of $5,750,600.00. Following the completion of the transaction, the chief financial officer owned 45,460 shares of the company’s stock, valued at $26,142,227.60. The trade was a 18.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 54,729 shares of company stock valued at $31,084,308 in the last quarter. Insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

Large investors have recently modified their holdings of the business. IFS Advisors LLC purchased a new stake in Caterpillar in the 4th quarter valued at about $31,000. Rialto Wealth Management LLC increased its position in shares of Caterpillar by 47.4% during the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock valued at $32,000 after acquiring an additional 18 shares during the last quarter. Marquette Asset Management LLC raised its stake 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 valued at $28,000 after acquiring an additional 53 shares during the period. Noble Wealth Management PBC lifted its holdings in shares of Caterpillar by 140.0% in the 4th quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company’s stock worth $34,000 after acquiring an additional 35 shares during the last quarter. Finally, Joseph Group Capital Management purchased a new position in shares of Caterpillar during the 3rd quarter worth approximately $32,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Price Performance

Shares of Caterpillar stock opened at $646.95 on Monday. The firm has a market cap of $302.76 billion, a PE ratio of 33.21, a P/E/G ratio of 2.50 and a beta of 1.57. Caterpillar has a twelve month low of $267.30 and a twelve month high of $655.68. The company has a quick ratio of 0.86, a current ratio of 1.38 and a debt-to-equity ratio of 1.34. The business has a 50-day moving average price of $586.90 and a 200 day moving average price of $503.62.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Monday, November 3rd. The industrial products company reported $4.95 EPS for the quarter, beating the consensus estimate of $4.52 by $0.43. The company had revenue of $17.64 billion for the quarter, compared to analyst estimates of $16.72 billion. Caterpillar had a return on equity of 47.16% and a net margin of 14.34%.Caterpillar’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period last year, the company earned $5.17 earnings per share. Sell-side analysts predict that Caterpillar will post 19.86 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Tuesday, January 20th will be issued a $1.51 dividend. The ex-dividend date of this dividend is Tuesday, January 20th. This represents a $6.04 dividend on an annualized basis and a dividend yield of 0.9%. Caterpillar’s dividend payout ratio is currently 31.01%.

Caterpillar Company Profile

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.