Caterpillar (NYSE:CAT) Shares Up 1.7% – Still a Buy?

Caterpillar Inc. (NYSE:CAT) shares were up 1.7% during mid-day trading on Friday . The stock traded as high as $821.00 and last traded at $813.51. Approximately 1,902,531 shares traded hands during mid-day trading, a decline of 34% from the average daily volume of 2,878,338 shares. The stock had previously closed at $800.14.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: FieldAI partnership strengthens the automation narrative. Caterpillar will combine its construction-equipment expertise with FieldAI’s physical-AI technology to develop autonomous capabilities for machines and improve safety, productivity, and job-site visibility. The agreement could create longer-term software and automation opportunities beyond traditional equipment sales. Caterpillar partners with FieldAI for equipment automation
• Positive Sentiment: Analyst and earnings sentiment is improving. Zacks upgraded CAT to a Rank #1, or Strong Buy, citing improving earnings prospects. Separately, Erste Group Bank raised its fiscal 2026 EPS forecast, adding to the bullish outlook. Caterpillar upgraded to Strong Buy
• Positive Sentiment: Power-generation demand remains a major growth driver. Caterpillar’s Power & Energy business is benefiting from rising electricity demand from data centers and AI infrastructure. Retail sales to power-generation users reportedly surged 72% year over year in the second quarter, supporting the view that CAT is becoming an important supplier to digital infrastructure. Can CAT Stock Compound Its Way Higher?
• Neutral Sentiment: Strong operating results support the bull case, but expectations are elevated. Caterpillar recently exceeded quarterly EPS and revenue estimates, with revenue up sharply year over year. Commentary describing CAT as the strongest performer among heavy-machinery peers reinforces its operating momentum, although investors may already be pricing in much of that success. Heavy Machinery Q2 Earnings: Caterpillar is the Best in the Biz
• Negative Sentiment: Valuation and recent performance remain risks. Commentary warns that CAT’s stock has outpaced the underlying performance of some peers and is betting on future growth that has not fully arrived. The shares have also declined since the latest earnings report, while reported insider selling has added pressure. CAT Has Left Its Peers Behind. Or Has It?

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on the stock. Robert W. Baird set a $970.00 target price on shares of Caterpillar in a research report on Wednesday, August 5th. DA Davidson lifted their price target on Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Barclays increased their target price on Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a report on Thursday, August 6th. Rothschild & Co Redburn lifted their target price on Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a research report on Thursday, May 14th. Finally, Zacks Research raised Caterpillar from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat.com, Caterpillar has an average rating of “Moderate Buy” and an average price target of $995.52.

Caterpillar Stock Performance

The company has a market capitalization of $373.95 billion, a price-to-earnings ratio of 35.00, a P/E/G ratio of 1.38 and a beta of 1.60. The stock has a 50 day simple moving average of $876.18 and a 200 day simple moving average of $838.63. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The business had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. During the same quarter last year, the business posted $4.72 EPS. The business’s revenue was up 23.7% on a year-over-year basis. As a group, analysts anticipate that Caterpillar Inc. will post 27.35 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Monday, July 20th were given a $1.63 dividend. The ex-dividend date was Monday, July 20th. This represents a $6.52 annualized dividend and a yield of 0.8%. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s payout ratio is 28.06%.

Insider Transactions at Caterpillar

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the company’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer owned 34,555 shares in the company, valued at approximately $27,954,303.90. This represents a 48.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.33% of the stock is owned by insiders.

Hedge Funds Weigh In On Caterpillar

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Diversify Advisory Services LLC bought a new stake in shares of Caterpillar in the second quarter worth about $5,372,000. Axxcess Wealth Management LLC increased its stake in Caterpillar by 2.8% during the 4th quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company’s stock worth $12,844,000 after purchasing an additional 604 shares in the last quarter. DSG Capital Advisors LLC bought a new stake in Caterpillar during the 1st quarter worth approximately $1,226,000. Cornerstone Planning LLC acquired a new stake in Caterpillar during the 4th quarter worth approximately $4,517,000. Finally, RiverFront Investment Group LLC boosted its holdings in shares of Caterpillar by 21.1% in the fourth quarter. RiverFront Investment Group LLC now owns 8,915 shares of the industrial products company’s stock valued at $5,107,000 after buying an additional 1,552 shares during the period. 70.98% of the stock is owned by institutional investors.

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.