Caterpillar (NYSE:CAT) Stock Rating Lowered by Zacks Research

Caterpillar (NYSE:CAT) was downgraded by research analysts at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Tuesday,Zacks.com reports. Zacks Research also issued estimates for Caterpillar’s Q3 2026 earnings at $6.36 EPS, Q4 2026 earnings at $6.61 EPS, FY2026 earnings at $24.51 EPS, Q1 2027 earnings at $6.15 EPS, Q2 2027 earnings at $7.17 EPS, Q3 2027 earnings at $7.46 EPS, Q4 2027 earnings at $8.22 EPS, FY2027 earnings at $29.01 EPS, Q1 2028 earnings at $7.57 EPS, Q2 2028 earnings at $8.77 EPS and FY2028 earnings at $34.31 EPS.

Other equities research analysts have also issued reports about the company. Bank of America increased their target price on Caterpillar from $930.00 to $989.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Jefferies Financial Group increased their price objective on shares of Caterpillar from $900.00 to $1,045.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Daiwa Securities Group lifted their price objective on shares of Caterpillar from $790.00 to $900.00 and gave the company a “neutral” rating in a research report on Friday, May 1st. Robert W. Baird boosted their target price on shares of Caterpillar from $1,165.00 to $1,200.00 and gave the company an “outperform” rating in a research note on Friday, June 26th. Finally, Sanford C. Bernstein raised their price target on shares of Caterpillar from $769.00 to $879.00 and gave the company a “market perform” rating in a research note on Friday, May 1st. Fifteen research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $980.57.

Caterpillar Price Performance

CAT opened at $914.19 on Tuesday. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. The company’s 50-day moving average price is $931.98 and its 200 day moving average price is $790.77. Caterpillar has a fifty-two week low of $403.32 and a fifty-two week high of $1,073.46. The firm has a market cap of $421.07 billion, a price-to-earnings ratio of 45.50, a price-to-earnings-growth ratio of 1.83 and a beta of 1.57.

Caterpillar (NYSE:CAT) last issued its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $17.41 billion during the quarter, compared to the consensus estimate of $16.53 billion. During the same period in the previous year, the firm posted $4.25 earnings per share. Caterpillar’s quarterly revenue was up 22.2% compared to the same quarter last year. As a group, sell-side analysts expect that Caterpillar will post 24.85 earnings per share for the current year.

Insider Activity at Caterpillar

In related news, insider Lange Bob De sold 24,222 shares of Caterpillar stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the transaction, the insider directly owned 86,029 shares of the company’s stock, valued at $79,397,884.68. The trade was a 21.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Denise C. Johnson sold 12,605 shares of the business’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the sale, the insider owned 49,825 shares in the company, valued at approximately $45,236,615.75. This trade represents a 20.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 95,773 shares of company stock worth $87,642,635 in the last quarter. Company insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its holdings in shares of Caterpillar by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company’s stock worth $26,572,681,000 after acquiring an additional 442,164 shares during the last quarter. State Street Corp raised its position in shares of Caterpillar by 1.1% during the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company’s stock worth $20,273,039,000 after purchasing an additional 385,204 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Caterpillar by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company’s stock valued at $6,072,572,000 after purchasing an additional 94,524 shares during the last quarter. Fisher Asset Management LLC boosted its position in shares of Caterpillar by 0.6% in the 4th quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company’s stock valued at $5,438,408,000 after purchasing an additional 54,069 shares during the period. Finally, Bank of America Corp DE boosted its position in shares of Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock valued at $3,860,457,000 after purchasing an additional 928,974 shares during the period. 70.98% of the stock is currently owned by institutional investors.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research lifted Caterpillar’s forward earnings estimates across multiple quarters and fiscal years, signaling expectations for stronger profitability ahead.
• Positive Sentiment: The firm reiterated a Strong-Buy rating on Caterpillar, which can reinforce bullish sentiment toward the stock.
• Neutral Sentiment: Wall Street is still expecting Caterpillar to report a double-digit rise in second-quarter profits when the company reports earnings soon.
• Negative Sentiment: CAT has been under pressure recently, with the stock closing lower in the latest session and trading below its recent level, suggesting broader market or valuation concerns may still be weighing on shares.

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.