Caterpillar (NYSE:CAT) Price Target Raised to $740.00

Caterpillar (NYSE:CAT) had its target price raised by JPMorgan Chase & Co. from $730.00 to $740.00 in a research report released on Wednesday,Benzinga reports. The brokerage currently has an overweight rating on the industrial products company’s stock.

Other equities research analysts also recently issued reports about the stock. UBS Group lifted their price target on shares of Caterpillar from $506.00 to $581.00 and gave the company a “neutral” rating in a research report on Tuesday, November 4th. DA Davidson lifted their price objective on Caterpillar from $408.00 to $569.00 and gave the stock a “neutral” rating in a report on Monday, November 3rd. Wells Fargo & Company initiated coverage on Caterpillar in a report on Thursday, November 13th. They issued an “overweight” rating and a $675.00 target price on the stock. Argus lifted their price target on Caterpillar from $460.00 to $625.00 and gave the stock a “buy” rating in a research note on Wednesday, November 19th. Finally, Royal Bank Of Canada began coverage on shares of Caterpillar in a research note on Wednesday, October 22nd. They issued a “sector perform” rating and a $560.00 price objective on the stock. Three analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $623.10.

Caterpillar Price Performance

Caterpillar stock opened at $646.95 on Wednesday. The company has a market cap of $302.76 billion, a P/E ratio of 33.21, a price-to-earnings-growth ratio of 2.50 and a beta of 1.57. Caterpillar has a one year low of $267.30 and a one year high of $655.68. The business has a fifty day moving average of $586.90 and a two-hundred day moving average of $502.11. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.86 and a current ratio of 1.38.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Monday, November 3rd. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.52 by $0.43. The business had revenue of $17.64 billion during the quarter, compared to the consensus estimate of $16.72 billion. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. The business’s revenue was up 9.5% compared to the same quarter last year. During the same quarter last year, the firm posted $5.17 EPS. As a group, analysts predict that Caterpillar will post 19.86 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

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

Insider Activity at Caterpillar

In related news, insider Lange Bob De sold 14,638 shares of the firm’s stock in a transaction that occurred on Wednesday, November 5th. The shares were sold at an average price of $562.36, for a total transaction of $8,231,825.68. Following the sale, the insider owned 80,209 shares in the company, valued at approximately $45,106,333.24. This trade represents a 15.43% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of the business’s stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $575.06, for a total value of $5,750,600.00. Following the completion of the transaction, the chief financial officer owned 45,460 shares of the company’s stock, valued at $26,142,227.60. This trade represents a 18.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 54,729 shares of company stock worth $31,084,308 over the last three months. Company insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

Large investors have recently added to or reduced their stakes in the business. Norges Bank acquired a new stake in shares of Caterpillar during the 2nd quarter valued at about $2,165,899,000. Groupe la Francaise boosted its holdings in Caterpillar by 82.0% during the second quarter. Groupe la Francaise now owns 27,246 shares of the industrial products company’s stock valued at $10,820,000 after purchasing an additional 12,278 shares in the last quarter. Trivium Point Advisory LLC grew its stake in shares of Caterpillar by 132.9% in the 2nd quarter. Trivium Point Advisory LLC now owns 1,926 shares of the industrial products company’s stock valued at $748,000 after purchasing an additional 1,099 shares during the period. Union Bancaire Privee UBP SA raised its holdings in shares of Caterpillar by 155.9% in the 3rd quarter. Union Bancaire Privee UBP SA now owns 47,231 shares of the industrial products company’s stock worth $21,014,000 after buying an additional 28,773 shares in the last quarter. Finally, Palmer Knight Co bought a new position in shares of Caterpillar during the 2nd quarter worth approximately $5,884,000. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Bank of America raised its price target on CAT to $708 and kept a “buy” rating — a meaningful bullish signal from a major shop that can attract flows and support the share price. MarketScreener
• Positive Sentiment: JPMorgan analyst told investors CAT shares are expected to rise, adding institutional conviction to the bullish case and potentially supporting buying interest. Caterpillar (NYSE:CAT) Stock Price Expected to Rise
• Positive Sentiment: Caterpillar announced a partnership with NVIDIA to develop foundations for autonomous systems — this accelerates higher-margin, software-enabled product opportunities (autonomy, telematics) over time. Caterpillar partners with NVIDIA
• Positive Sentiment: Bernstein highlighted CAT as a potential winner if data centers shift to on-site power generation — a new end market for power systems could boost equipment and power solutions demand. Caterpillar is potential winner if data centers move power generation on-site
• Positive Sentiment: Articles emphasizing CAT’s ~30% payout ratio argue its dividend is well-covered and likely sustainable through downturns — supportive for income-focused investors. Caterpillar’s 30% Payout Ratio Shows Why Its Dividend Can Survive the Next Recession
• Neutral Sentiment: Caterpillar set its Q4 and full-year 2025 earnings release for Jan. 29 — this is the next key event risk/opportunity that will likely drive short-term volatility. Caterpillar Inc. to Announce Fourth-Quarter and Full-Year 2025 Financial Results on January 29
• Neutral Sentiment: Zacks highlights industrial stocks that could beat earnings using its Earnings ESP screen — a potential catalyst if CAT is included, but specifics/odds are unclear. These 2 Industrial Products Stocks Could Beat Earnings
• Negative Sentiment: Caterpillar is contesting a patent complaint from Bobcat and the trade commission will investigate — pending legal/ITC outcomes create downside risk and potential remedy costs or product restrictions. Caterpillar Fights Bobcat Patent Complaint; Trade Commission to Investigate

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.