Caterpillar (NYSE:CAT) Stock Jumps 1% – Time to Buy?

Caterpillar Inc. (NYSE:CAT)’s stock price rose 1% during mid-day trading on Friday. The company traded as high as $572.00 and last traded at $559.3170. Approximately 4,733,500 shares traded hands during mid-day trading, an increase of 63% from the average daily volume of 2,904,815 shares. The stock had previously closed at $553.64.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Strong results and backlog support the outlook. Caterpillar’s third-quarter earnings beat estimates, while its $78.1 billion backlog, stronger cash flow and expanding margins point to solid demand. The company is also expanding capacity to meet power-generation demand. Article: CAT Shares Fall Despite Q3 Earnings Beat
• Neutral Sentiment: Upcoming investor event. Construction Industries Group President Rod Shurman is scheduled to take part in a Bernstein-hosted fireside chat on Nov. 17; no new financial guidance was announced. Article: Caterpillar executive to participate in Bernstein fireside chat
• Negative Sentiment: AI-trade selling and valuation concerns weigh on the stock. Investors have been selling Caterpillar alongside other industrial companies amid worries that AI-related investment could slow. The market increasingly treats CAT as a data-center power play, exposing it to shifts in sentiment even though power generation accounted for about 15% of 2025 sales. Article: AI selloff spreads to industrials
• Negative Sentiment: Execution and cyclical risks remain. Reports cite orders falling, dealers trimming inventories, and tariffs, manufacturing costs and production constraints pressuring margins. Morgan Stanley also cut its price target by 26% after earnings, highlighting the risk of a cyclical test despite the backlog. Article: Morgan Stanley cuts Caterpillar price target

Wall Street Analyst Weigh In

CAT has been the topic of several research reports. Wells Fargo & Company reduced their price target on shares of Caterpillar from $1,155.00 to $840.00 and set an “overweight” rating on the stock in a research report on Monday, October 26th. Barclays increased their price objective on shares of Caterpillar from $800.00 to $900.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. Citigroup reduced their target price on shares of Caterpillar from $950.00 to $800.00 and set a “buy” rating on the stock in a report on Friday, October 30th. Robert W. Baird set a $970.00 price target on shares of Caterpillar in a report on Wednesday, August 5th. Finally, DA Davidson dropped their price target on Caterpillar from $882.00 to $685.00 and set a “neutral” rating for the company in a research report on Monday. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. Based on data from MarketBeat, Caterpillar currently has a consensus rating of “Moderate Buy” and an average price target of $898.25.

Caterpillar Price Performance

The company has a current ratio of 1.42, a quick ratio of 0.88 and a debt-to-equity ratio of 1.50. The company has a market capitalization of $257.10 billion, a PE ratio of 21.94, a price-to-earnings-growth ratio of 1.02 and a beta of 1.65. The stock’s 50-day moving average is $765.36 and its two-hundred day moving average is $806.58.

Caterpillar (NYSE:CAT) last released its earnings results on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, beating analysts’ consensus estimates of $7.06 by $0.14. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. The firm had revenue of $20.68 billion for the quarter, compared to analysts’ expectations of $20.76 billion. During the same quarter in the prior year, the firm posted $4.95 earnings per share. The company’s quarterly revenue was up 17.3% on a year-over-year basis. On average, equities analysts predict that Caterpillar Inc. will post 27.62 EPS for the current year.

Caterpillar Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Monday, October 26th. Caterpillar’s dividend payout ratio (DPR) is 25.58%.

Insiders Place Their Bets

In related news, CEO Joseph Creed sold 32,401 shares of Caterpillar stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the sale, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. This trade represents a 48.39% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director James C. Fish, Jr. acquired 1,000 shares of the stock in a transaction on Monday, November 2nd. The stock was bought at an average cost of $620.39 per share, with a total value of $620,390.00. Following the completion of the transaction, the director owned 4,714 shares in the company, valued at $2,924,518.46. This trade represents a 26.93% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.33% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of CAT. BlackRock Inc. acquired a new position in shares of Caterpillar in the 2nd quarter valued at about $40,457,153,000. State Street Corp grew its position in shares of Caterpillar by 4.0% during the 2nd quarter. State Street Corp now owns 36,276,960 shares of the industrial products company’s stock valued at $37,120,529,000 after buying an additional 1,396,356 shares during the last quarter. Bank of America Corp DE acquired a new stake in Caterpillar during the second quarter worth about $5,818,150,000. Bank of New York Mellon Corp acquired a new stake in Caterpillar during the second quarter worth about $3,192,710,000. Finally, Legal & General Group Plc bought a new position in Caterpillar in the second quarter worth about $2,783,451,000. Institutional investors own 70.98% of the company’s stock.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, engines, turbines, and related products and services. Its offerings include earthmoving and material-handling machines, diesel and natural gas engines, power-generation systems, and equipment and technologies used in mining and transportation. The company’s products are commonly sold under the Cat brand.

Caterpillar serves customers in markets around the world through a network of independent dealers. Its businesses also provide parts, maintenance, equipment rental, and other support services, as well as financing and insurance through its financial services operations.

The company was formed in 1925 through the merger of the Holt Manufacturing Company and the C.