Caterpillar (NYSE:CAT) Sets New 1-Year High – Still a Buy?

Caterpillar Inc. (NYSE:CAT) shares hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $1,061.00 and last traded at $1,064.6910, with a volume of 419206 shares traded. The stock had previously closed at $1,033.19.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts at Zacks Research and Erste Group both raised earnings estimates for Caterpillar, reinforcing expectations for solid profitability and keeping the stock’s long-term outlook constructive.
• Positive Sentiment: Caterpillar has been supported by strong Q1 growth, record backlog, upbeat 2026 guidance, and Russell Top 50 Index inclusion, which helped drive the shares to a 52-week high recently.
• Neutral Sentiment: Several market-commentary pieces highlighted Caterpillar as a beneficiary of the broader AI infrastructure theme, which has helped fuel investor enthusiasm but also contributed to a richer valuation.
• Negative Sentiment: Michael Burry’s decision to short Caterpillar for the first time has raised concerns that the stock’s valuation may be stretched after its sharp run-up, and that sentiment shift is weighing on the shares. Michael Burry says he’s shorting Caterpillar for the first time after it nearly doubled in the AI-driven rally of 2026

Analyst Ratings Changes

A number of analysts have recently commented on CAT shares. Daiwa Securities Group lifted their price target on Caterpillar from $790.00 to $900.00 and gave the company a “neutral” rating in a research note on Friday, May 1st. Williams Trading set a $825.00 price objective on Caterpillar in a research note on Tuesday, March 10th. Wolfe Research lifted their target price on shares of Caterpillar from $670.00 to $750.00 and gave the stock an “outperform” rating in a research report on Tuesday, March 31st. Weiss Ratings reissued a “buy (b-)” rating on shares of Caterpillar in a report on Friday, May 8th. Finally, Oppenheimer set a $980.00 price target on shares of Caterpillar and gave the company an “outperform” rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat, Caterpillar has an average rating of “Moderate Buy” and a consensus target price of $941.45.

Caterpillar Stock Down 6.7%

The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The firm’s 50 day moving average price is $911.90 and its two-hundred day moving average price is $765.06. The company has a market cap of $457.48 billion, a P/E ratio of 49.44, a price-to-earnings-growth ratio of 2.10 and a beta of 1.57.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business had revenue of $17.41 billion during the quarter, compared to analysts’ expectations of $16.53 billion. During the same period last year, the company posted $4.25 earnings per share. The business’s quarterly revenue was up 22.2% on a year-over-year basis. Equities research analysts anticipate that Caterpillar Inc. will post 24.66 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be paid a $1.63 dividend. The ex-dividend date is Monday, July 20th. This represents a $6.52 annualized dividend and a dividend yield of 0.7%. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s dividend payout ratio (DPR) is 30.06%.

Insiders Place Their Bets

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the firm’s stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the sale, the chief financial officer owned 52,935 shares of the company’s stock, valued at approximately $48,631,913.85. This trade represents a 22.85% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Denise C. Johnson sold 12,605 shares of the business’s stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total value of $11,444,205.55. Following the sale, the insider owned 49,825 shares of the company’s stock, valued at approximately $45,236,615.75. This represents a 20.19% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 95,773 shares of company stock worth $87,642,635 over the last three months. Insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Several hedge funds have recently bought and sold shares of the business. Miller Global Investments LLC increased its stake in Caterpillar by 127.9% during the 2nd quarter. Miller Global Investments LLC now owns 531 shares of the industrial products company’s stock valued at $565,000 after purchasing an additional 298 shares in the last quarter. Adelphi Trust Co grew its holdings in shares of Caterpillar by 4.1% during the second quarter. Adelphi Trust Co now owns 2,043 shares of the industrial products company’s stock valued at $2,176,000 after buying an additional 80 shares during the last quarter. Global Wealth Strategies & Associates grew its holdings in shares of Caterpillar by 5.9% during the second quarter. Global Wealth Strategies & Associates now owns 374 shares of the industrial products company’s stock valued at $398,000 after buying an additional 21 shares during the last quarter. WealthPoint Financial LLC increased its position in shares of Caterpillar by 22.9% during the first quarter. WealthPoint Financial LLC now owns 778 shares of the industrial products company’s stock worth $551,000 after acquiring an additional 145 shares in the last quarter. Finally, S&A Financial Services Inc. acquired a new stake in shares of Caterpillar in the 1st quarter worth about $213,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

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.