Bank of America Issues Positive Forecast for Caterpillar (NYSE:CAT) Stock Price

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

CAT has been the topic of several other reports. Argus boosted their price target on shares of Caterpillar from $460.00 to $625.00 and gave the company a “buy” rating in a report on Wednesday, November 19th. Rothschild & Co Redburn boosted their target price on Caterpillar from $420.00 to $650.00 and gave the company a “neutral” rating in a research note on Wednesday, January 21st. Erste Group Bank raised Caterpillar from a “hold” rating to a “buy” rating in a research report on Friday, October 3rd. Robert W. Baird lifted their price target on Caterpillar from $612.00 to $680.00 and gave the company an “outperform” rating in a report on Thursday, October 30th. Finally, DA Davidson boosted their price target on Caterpillar from $408.00 to $569.00 and gave the company a “neutral” rating in a research note on Monday, November 3rd. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $664.76.

Caterpillar Trading Down 1.2%

NYSE:CAT opened at $657.13 on Friday. The stock’s 50-day moving average is $604.31 and its two-hundred day moving average is $519.05. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.44 and a quick ratio of 0.86. The stock has a market cap of $307.52 billion, a PE ratio of 34.92, a price-to-earnings-growth ratio of 2.56 and a beta of 1.57. Caterpillar has a fifty-two week low of $267.30 and a fifty-two week high of $679.99.

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

Caterpillar Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Tuesday, January 20th will be given a dividend of $1.51 per share. The ex-dividend date of this dividend is Tuesday, January 20th. This represents a $6.04 dividend on an annualized basis and a yield of 0.9%. Caterpillar’s dividend payout ratio is presently 31.01%.

Insider Buying and Selling

In related news, insider Lange Bob De sold 14,638 shares of Caterpillar stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $562.36, for a total value of $8,231,825.68. Following the transaction, the insider owned 80,209 shares in the company, valued at $45,106,333.24. This trade represents a 15.43% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Anthony D. Fassino sold 8,184 shares of the company’s stock in a transaction dated Monday, November 10th. The shares were sold at an average price of $570.18, for a total transaction of $4,666,353.12. Following the sale, the insider owned 41,512 shares of the company’s stock, valued at $23,669,312.16. This trade represents a 16.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 54,729 shares of company stock valued at $31,084,308. 0.33% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Caterpillar

Large investors have recently made changes to their positions in the business. Kilter Group LLC acquired a new stake in shares of Caterpillar in the second quarter worth $27,000. Torren Management LLC bought a new stake in Caterpillar in the 4th quarter valued at $27,000. Mid American Wealth Advisory Group Inc. acquired a new stake in Caterpillar in the 2nd quarter worth $28,000. Marquette Asset Management LLC increased its holdings in shares of Caterpillar by 1,060.0% during the 3rd quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 53 shares during the period. Finally, IFS Advisors LLC acquired a new position in shares of Caterpillar during the fourth quarter valued at about $31,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Key Caterpillar News

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.