Caterpillar (NYSE:CAT) Trading 1.7% Higher Following Analyst Upgrade

Shares of Caterpillar Inc. (NYSE:CAT) were up 1.7% on Wednesday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The company traded as high as $871.20 and last traded at $857.35. Approximately 3,092,870 shares traded hands during mid-day trading, an increase of 6% from the average session volume of 2,922,312 shares. The stock had previously closed at $843.37.

CAT has been the subject of several other research reports. Wall Street Zen raised shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. DA Davidson boosted their target price on Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a research report on Thursday, August 6th. Rothschild & Co Redburn raised their price target on Caterpillar from $700.00 to $950.00 and gave the company a “neutral” rating in a report on Thursday, May 14th. JPMorgan Chase & Co. lifted their price objective on Caterpillar from $1,125.00 to $1,165.00 and gave the stock an “overweight” rating in a research note on Wednesday, June 17th. Finally, Jefferies Financial Group increased their target price on Caterpillar from $900.00 to $1,045.00 and gave the company a “buy” rating in a research report on Friday, May 1st. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat, Caterpillar presently has an average rating of “Moderate Buy” and a consensus target price of $995.52.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar ended the second quarter with a record $72 billion backlog, supporting the company’s upgraded 2026 sales outlook and suggesting that demand across construction, mining and energy markets remains strong. CAT Ends Q2 With Record Backlog: Is Demand Momentum Here to Stay?
• Positive Sentiment: Recent quarterly results featured approximately $20.5 billion in sales, stronger margins and an improved outlook, reinforcing the investment case despite the stock’s elevated valuation. The Zacks Analyst Blog Highlights Caterpillar, Komatsu, Terex and Astec Industries
• Positive Sentiment: Zacks Research upgraded CAT from “hold” to “strong-buy,” while the average brokerage recommendation remains equivalent to Buy. The company has also been identified as a momentum stock, which may attract additional investor interest. Brokers Suggest Investing in Caterpillar
• Neutral Sentiment: Analysts are cautiously optimistic after CAT’s strong performance over the past year. Investors should note that consensus recommendations can be overly bullish and may not reliably predict future returns. Do Wall Street Analysts Like Caterpillar Stock?
• Negative Sentiment: Caterpillar’s valuation multiple is increasingly dependent on margin expansion because investors already expect its recent revenue boom to moderate. Any disappointment in profitability could pressure the shares. Caterpillar’s Falling Multiple Rests On Margin, Not Its Backlog

Hedge Funds Weigh In On Caterpillar

Hedge funds have recently added to or reduced their stakes in the stock. Lam Group Inc. purchased a new stake in Caterpillar during the 1st quarter worth approximately $26,000. Torren Management LLC purchased a new stake in Caterpillar during the fourth quarter worth $27,000. Frazier Financial Advisors LLC grew its position in shares of Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after acquiring an additional 33 shares during the period. Decker Retirement Planning Inc. increased its position in shares of Caterpillar by 440.0% in the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after buying an additional 22 shares in the last quarter. Finally, Cornerstone Financial Management LLC acquired a new position in Caterpillar during the fourth quarter worth $32,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Price Performance

The stock has a market capitalization of $393.96 billion, a PE ratio of 36.95, a price-to-earnings-growth ratio of 1.53 and a beta of 1.60. The stock’s 50 day moving average is $916.05 and its two-hundred day moving average is $826.31. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts’ consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same period in the previous year, the business posted $4.72 earnings per share. Caterpillar’s quarterly revenue was up 23.7% on a year-over-year basis. On average, equities analysts anticipate that Caterpillar Inc. will post 26.56 EPS for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be paid a $1.63 dividend. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. Caterpillar’s payout ratio is presently 28.06%.

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.