Wells Fargo & Company Raises Caterpillar (NYSE:CAT) Price Target to $870.00

Caterpillar (NYSE:CAT) had its target price lifted by analysts at Wells Fargo & Company from $756.00 to $870.00 in a research note issued to investors on Wednesday, Marketbeat Ratings reports. The brokerage currently has an “overweight” rating on the industrial products company’s stock. Wells Fargo & Company‘s target price indicates a potential upside of 15.57% from the company’s current price.

A number of other research analysts have also commented on the stock. UBS Group restated a “neutral” rating and set a $677.00 price target on shares of Caterpillar in a research report on Monday, February 2nd. Barclays boosted their target price on Caterpillar from $610.00 to $625.00 and gave the stock an “equal weight” rating in a research report on Friday, January 30th. Wall Street Zen cut Caterpillar from a “buy” rating to a “hold” rating in a report on Saturday, February 21st. CICC Research started coverage on Caterpillar in a report on Friday, February 6th. They set an “outperform” rating for the company. Finally, Weiss Ratings restated a “buy (b)” rating on shares of Caterpillar in a research report on Monday, December 29th. Sixteen equities research 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’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $712.52.

Caterpillar Stock Performance

Shares of CAT opened at $752.81 on Wednesday. Caterpillar has a 52-week low of $267.30 and a 52-week high of $789.81. The stock’s 50-day simple moving average is $664.48 and its 200 day simple moving average is $561.23. 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 capitalization of $350.27 billion, a price-to-earnings ratio of 40.00, a price-to-earnings-growth ratio of 1.81 and a beta of 1.58.

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

Insider Transactions at Caterpillar

In other Caterpillar news, CAO William E. Schaupp sold 972 shares of the company’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $764.20, for a total transaction of $742,802.40. Following the completion of the sale, the chief accounting officer directly owned 824 shares in the company, valued at $629,700.80. This represents a 54.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Lange Bob De sold 22,656 shares of the business’s stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $720.11, for a total value of $16,314,812.16. Following the completion of the sale, the insider directly owned 79,953 shares of the company’s stock, valued at approximately $57,574,954.83. This trade represents a 22.08% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 143,450 shares of company stock worth $98,245,065. Corporate insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Several hedge funds and other institutional investors have recently bought and sold shares of CAT. Norges Bank bought a new stake in shares of Caterpillar during the 2nd quarter valued at about $2,165,899,000. Wellington Management Group LLP boosted its position in Caterpillar by 3,949.8% during the 3rd quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company’s stock valued at $2,494,568,000 after acquiring an additional 5,098,964 shares in the last quarter. Capital International Investors bought a new position in shares of Caterpillar in the 4th quarter worth approximately $1,225,317,000. Massachusetts Financial Services Co. MA lifted its stake in shares of Caterpillar by 1,851.8% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 1,830,414 shares of the industrial products company’s stock valued at $873,382,000 after purchasing an additional 1,736,631 shares during the period. Finally, Northwestern Mutual Wealth Management Co. boosted its position in shares of Caterpillar by 573.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company’s stock valued at $861,947,000 after purchasing an additional 1,281,087 shares in the last quarter. Institutional investors own 70.98% of the company’s stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Major analyst upgrades and price‑target hikes — Wells Fargo raised its target to $870 (overweight) and Daiwa lifted its target to $790, giving fresh buy‑side ammunition and supporting upside expectations. Wells Fargo price target hike
• Positive Sentiment: High‑profile media and TV endorsements (Jim Cramer commentary) are adding retail/institutional attention and positive sentiment toward CAT’s machinery exposure. Jim Cramer on Caterpillar
• Positive Sentiment: Strategic corporate moves — Caterpillar acquired RPMGlobal (mining software) and its venture arm backed ElevenEs, signaling expansion into software/tech and commodity‑linked solutions that can lift long‑term services and recurring revenue. Caterpillar acquires RPMGlobal ElevenEs Series B backed by Caterpillar Venture Capital
• Neutral Sentiment: Sector/market reports point to strong multi‑year demand for mining trucks, tunneling and rock‑drilling equipment (electrification, autonomy, infrastructure), which is a tailwind but not an immediate earnings surprise. Mining Truck Market Report
• Neutral Sentiment: Company PR events (Global Technician Finals) and product/service improvements (rental management redesign) help branding and aftermarket services but are gradual catalysts. Global Technician Finals
• Negative Sentiment: Insider selling: a senior employee sold ~2,278 shares recently (disclosed), which can be perceived as profit‑taking by insiders and adds psychological pressure on the stock. Insider sale disclosure
• Negative Sentiment: Short interest jumped roughly 61% in February — increased shorting raises near‑term volatility and suggests some market participants are positioning for a pullback. (Internal short‑interest data)
• Negative Sentiment: Valuation is extended after a big rally (PE ~40 and ~124% Y/Y gain); several articles warn CAT now trades at a premium, increasing sensitivity to any slowdown in orders, margins or macro headwinds. Valuation assessment

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.