Caterpillar (NYSE:CAT) Hits New 1-Year High on Better-Than-Expected Earnings

Caterpillar Inc. (NYSE:CAT) hit a new 52-week high on Thursday after the company announced better than expected quarterly earnings. The company traded as high as $656.75 and last traded at $657.79, with a volume of 83528 shares traded. The stock had previously closed at $643.28.

The industrial products company reported $5.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.67 by $0.49. The business had revenue of $19.13 billion during the quarter, compared to the consensus estimate of $17.81 billion. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The business’s revenue was up 17.9% on a year-over-year basis. During the same quarter in the previous year, the company posted $5.14 EPS.

Caterpillar Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, February 19th. Stockholders of record on Tuesday, January 20th will be given a $1.51 dividend. The ex-dividend date is Tuesday, January 20th. This represents a $6.04 annualized dividend and a dividend yield of 0.9%. Caterpillar’s dividend payout ratio is currently 31.01%.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q4 results beat expectations — adjusted EPS $5.16 vs. $4.67 consensus and revenue $19.1B (record quarterly sales). Management highlighted strong equipment volumes that drove top‑line growth. PR Newswire: Q4 and FY2025 Results
• Positive Sentiment: AI/data-center demand is a clear growth driver — power-generation and energy equipment sales to data centers boosted the quarter and are being positioned as durable, long‑lived demand rather than cyclical construction spend. MarketWatch: AI data-center boom
• Positive Sentiment: Analysts raised price targets — JPMorgan bumped its target to $765 and kept an overweight stance, signaling further upside from current levels. MarketScreener: JPMorgan PT to $765
• Positive Sentiment: Bank of America also raised its target to $735 and maintained a buy rating, reinforcing buy-side conviction after the beat. Benzinga: BofA raises PT to $735
• Neutral Sentiment: Strong cash generation and capital return — full-year enterprise operating cash flow was robust ($11.7B), ending cash near $10B and ~$7.9B deployed to buybacks/dividends in 2025, supporting shareholder returns but moderating liquidity commentary. PR Newswire: Cash flow & buybacks
• Negative Sentiment: Tariff headwind flagged — Caterpillar warned of roughly a $2.6B tariff impact in 2026, saying higher tariffs and costs will pressure margins and could offset some benefits from stronger volumes. That guidance likely amplified near‑term selling. Reuters: $2.6B tariff hit warned

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on the company. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $678.00 target price on shares of Caterpillar in a research note on Friday. Barclays upped their price objective on Caterpillar from $610.00 to $625.00 and gave the company an “equal weight” rating in a research report on Friday. Rothschild & Co Redburn upped their target price on shares of Caterpillar from $420.00 to $650.00 and gave the company a “neutral” rating in a report on Wednesday, January 21st. DA Davidson raised their price target on shares of Caterpillar from $408.00 to $569.00 and gave the stock a “neutral” rating in a research note on Monday, November 3rd. Finally, Robert W. Baird set a $805.00 price objective on shares of Caterpillar in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $664.76.

Insider Activity

In related news, CAO William E. Schaupp sold 1,200 shares of Caterpillar stock in a transaction on Wednesday, November 5th. The stock was sold at an average price of $572.22, for a total value of $686,664.00. Following the transaction, the chief accounting officer owned 1,323 shares in the company, valued at approximately $757,047.06. This trade represents a 47.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Lange Bob De sold 14,638 shares of the company’s stock in a transaction dated Wednesday, November 5th. The stock was sold at an average price of $562.36, for a total value of $8,231,825.68. Following the sale, the insider owned 80,209 shares of the company’s stock, valued at $45,106,333.24. This represents a 15.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 54,729 shares of company stock valued at $31,084,308 in the last ninety days. 0.33% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of CAT. Torren Management LLC purchased a new stake in Caterpillar during the 4th quarter worth $27,000. IFS Advisors LLC acquired a new position in shares of Caterpillar during the fourth quarter worth about $31,000. Rialto Wealth Management LLC boosted its position in shares of Caterpillar by 47.4% in the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock worth $32,000 after buying an additional 18 shares during the period. Marquette Asset Management LLC grew its stake in shares of Caterpillar by 1,060.0% in the third quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock valued at $28,000 after buying an additional 53 shares in the last quarter. Finally, Noble Wealth Management PBC raised its holdings in shares of Caterpillar by 140.0% during the 4th quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company’s stock valued at $34,000 after buying an additional 35 shares during the period. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Caterpillar Stock Performance

The stock has a fifty day simple moving average of $604.31 and a two-hundred day simple moving average of $519.05. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.86 and a current ratio of 1.44. The stock has a market cap of $307.52 billion, a PE ratio of 34.92, a PEG ratio of 2.56 and a beta of 1.57.

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.