Caterpillar (NYSE:CAT) Price Target Raised to $735.00

Caterpillar (NYSE:CAT) had its price objective lifted by Bank of America from $708.00 to $735.00 in a research report sent to investors on Friday morning,Benzinga reports. Bank of America currently has a buy rating on the industrial products company’s stock.

CAT has been the subject of a number of other reports. Barclays increased their target price on shares of Caterpillar from $610.00 to $625.00 and gave the company an “equal weight” rating in a research report on Friday. HSBC upgraded shares of Caterpillar from a “hold” rating to a “buy” rating and increased their price objective for the company from $405.00 to $660.00 in a report on Wednesday, November 5th. Wolfe Research boosted their target price on Caterpillar from $470.00 to $670.00 and gave the stock an “outperform” rating in a report on Friday, January 2nd. Oppenheimer increased their price target on Caterpillar from $645.00 to $700.00 and gave the company an “outperform” rating in a report on Tuesday, January 20th. Finally, Morgan Stanley lifted their price objective on Caterpillar from $395.00 to $400.00 and gave the stock an “underweight” rating in a research report on Friday, January 23rd. 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $664.76.

Caterpillar Price Performance

NYSE:CAT opened at $657.13 on Friday. The company has a current ratio of 1.44, a quick ratio of 0.94 and a debt-to-equity ratio of 1.44. The stock has a 50 day moving average of $604.31 and a two-hundred day moving average of $520.61. The firm has a market cap of $307.52 billion, a P/E ratio of 34.92, a price-to-earnings-growth ratio of 2.53 and a beta of 1.58. Caterpillar has a 12 month low of $267.30 and a 12 month high of $679.99.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, beating the consensus estimate of $4.67 by $0.49. The firm 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 firm’s revenue was up 17.9% compared to the same quarter last year. During the same period in the prior year, the company earned $5.14 EPS. On average, analysts expect that Caterpillar will post 19.86 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The business 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. This represents a $6.04 annualized dividend and a yield of 0.9%. The ex-dividend date is Tuesday, January 20th. Caterpillar’s payout ratio is 32.09%.

Insider Buying and Selling at Caterpillar

In other news, CFO Andrew R. J. Bonfield sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $575.06, for a total value of $5,750,600.00. Following the sale, the chief financial officer directly owned 45,460 shares of the company’s stock, valued at approximately $26,142,227.60. The trade was a 18.03% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Lange Bob De sold 14,638 shares of the stock in a transaction that occurred on Wednesday, November 5th. The stock was sold at an average price of $562.36, for a total transaction of $8,231,825.68. Following the transaction, the insider directly owned 80,209 shares of the company’s stock, valued at $45,106,333.24. The trade was a 15.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 54,729 shares of company stock valued at $31,084,308. 0.33% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Caterpillar

Institutional investors and hedge funds have recently modified their holdings of the company. Norges Bank acquired a new position in Caterpillar during the second quarter worth about $2,165,899,000. Groupe la Francaise boosted its stake in shares of Caterpillar by 82.0% during the 2nd quarter. Groupe la Francaise now owns 27,246 shares of the industrial products company’s stock worth $10,820,000 after acquiring an additional 12,278 shares in the last quarter. Union Bancaire Privee UBP SA grew its holdings in shares of Caterpillar by 155.9% in the 3rd quarter. Union Bancaire Privee UBP SA now owns 47,231 shares of the industrial products company’s stock worth $21,014,000 after acquiring an additional 28,773 shares during the period. ZEGA Investments LLC increased its stake in Caterpillar by 149.6% in the 3rd quarter. ZEGA Investments LLC now owns 4,184 shares of the industrial products company’s stock valued at $1,996,000 after purchasing an additional 2,508 shares in the last quarter. Finally, Palmer Knight Co purchased a new stake in Caterpillar during the second quarter worth $5,884,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Trending Headlines about 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

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.