Morgan Stanley Increases Caterpillar (NYSE:CAT) Price Target to $400.00

Caterpillar (NYSE:CAT) had its price objective upped by investment analysts at Morgan Stanley from $395.00 to $400.00 in a report released on Friday,Benzinga reports. The brokerage currently has an “underweight” rating on the industrial products company’s stock. Morgan Stanley’s price objective points to a potential downside of 36.17% from the stock’s previous close.

Several other research firms have also recently issued reports on CAT. Raymond James Financial reiterated a “market perform” rating on shares of Caterpillar in a research report on Wednesday, January 7th. HSBC upgraded shares of Caterpillar from a “hold” rating to a “buy” rating and increased their price target for the company from $405.00 to $660.00 in a report on Wednesday, November 5th. Argus boosted their price objective on shares of Caterpillar from $460.00 to $625.00 and gave the stock a “buy” rating in a report on Wednesday, November 19th. JPMorgan Chase & Co. upped their target price on shares of Caterpillar from $730.00 to $740.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 14th. Finally, Citigroup lifted their price target on shares of Caterpillar from $690.00 to $710.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $637.70.

Caterpillar Trading Down 3.3%

NYSE CAT opened at $626.71 on Friday. 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 stock has a market capitalization of $293.29 billion, a P/E ratio of 32.17, a P/E/G ratio of 2.42 and a beta of 1.57. Caterpillar has a 52-week low of $267.30 and a 52-week high of $655.78. The firm has a 50-day moving average price of $594.45 and a 200 day moving average price of $511.37.

Caterpillar (NYSE:CAT) last released its earnings results on Monday, November 3rd. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.52 by $0.43. The company had revenue of $17.64 billion for the quarter, compared to analysts’ expectations of $16.72 billion. Caterpillar had a return on equity of 47.16% and a net margin of 14.34%.The firm’s quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $5.17 EPS. Equities research analysts expect that Caterpillar will post 19.86 EPS for the current year.

Insider Buying and Selling at Caterpillar

In related news, CAO William E. Schaupp sold 1,200 shares of Caterpillar stock in a transaction that occurred on Wednesday, November 5th. The stock was sold at an average price of $572.22, for a total transaction of $686,664.00. Following the completion of the transaction, the chief accounting officer directly owned 1,323 shares in the company, valued at $757,047.06. The trade was a 47.56% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Jason Kaiser sold 10,707 shares of the stock in a transaction on Tuesday, November 11th. The shares were sold at an average price of $563.60, for a total value of $6,034,465.20. Following the sale, the insider owned 8,649 shares in the company, valued at approximately $4,874,576.40. This trade represents a 55.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 54,729 shares of company stock worth $31,084,308. 0.33% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in CAT. Pacific Point Advisors LLC purchased a new position in shares of Caterpillar during the fourth quarter valued at approximately $579,000. Brighton Jones LLC lifted its stake in shares of Caterpillar by 51.5% during the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock worth $2,688,000 after purchasing an additional 2,519 shares during the period. McAdam LLC boosted its holdings in shares of Caterpillar by 1.6% during the second quarter. McAdam LLC now owns 1,872 shares of the industrial products company’s stock worth $727,000 after purchasing an additional 29 shares during the last quarter. Perigon Wealth Management LLC grew its position in shares of Caterpillar by 5.8% in the second quarter. Perigon Wealth Management LLC now owns 16,635 shares of the industrial products company’s stock valued at $6,458,000 after purchasing an additional 916 shares during the period. Finally, MKT Advisors LLC acquired a new position in Caterpillar in the second quarter valued at $270,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar expanded its AI partnership with Nvidia to modernize machines and manufacturing — this supports long-term efficiency and product differentiation. Caterpillar, Nvidia Team Up to Transform Machines and Manufacturing
• Positive Sentiment: Rothschild & Co Redburn raised its price target to $650, signaling upside from some sell-side analysts who see more room to run. Rothschild & Co Redburn Increases Caterpillar Price Target to $650.00
• Positive Sentiment: Oppenheimer flagged positive expectations for CAT shares, adding a supportive analyst view that can buoy sentiment. Caterpillar Stock Price Expected to Rise, Oppenheimer Analyst Says
• Neutral Sentiment: Barclays raised its price target to $610 and kept an equal-weight rating — a modest tweak that acknowledges momentum but stops short of a buy call. Barclays Adjusts Caterpillar Price Target to $610
• Neutral Sentiment: Feature pieces highlight Caterpillar’s push into technology and AI-driven equipment, supporting long-term strategy but not guaranteed near-term revenue shifts. Building The World Through Technology At Caterpillar
• Neutral Sentiment: Recent valuation commentary examines whether recent share gains are justified — useful for investors weighing multiple analyst targets and high P/E multiple. Assessing Caterpillar (CAT) Valuation After Strong Recent Share Price Momentum
• Neutral Sentiment: Caterpillar is scheduled to release quarterly earnings this week; guidance and parts/services commentary will be key catalysts. Caterpillar to Release Quarterly Earnings on Thursday
• Negative Sentiment: Two market headlines note that Caterpillar’s share losses were a major contributor to a multi-hundred-point Dow decline, pressuring sentiment intraday. Goldman Sachs, Caterpillar share losses contribute to Dow’s 411-point drop
• Negative Sentiment: Analysts at Zacks caution CAT may report a decline in earnings next quarter, which raises risk around the upcoming print. Analysts Estimate Caterpillar to Report a Decline in Earnings
• Negative Sentiment: Morgan Stanley raised its price target to $400 but left an underweight rating — the low target implies significant downside in that shop’s view and may temper bullish momentum. Benzinga
• Negative Sentiment: A worker has sued, alleging wrongful firing after reporting racial harassment — a legal/HR risk that can create headline volatility. Caterpillar worker sues, claims firing came after racial harassment report

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.