Caterpillar (NYSE:CAT) Reaches New 1-Year High on Analyst Upgrade

Caterpillar Inc. (NYSE:CAT)’s share price reached a new 52-week high during mid-day trading on Thursday after Rothschild & Co Redburn raised their price target on the stock from $420.00 to $650.00. Rothschild & Co Redburn currently has a neutral rating on the stock. Caterpillar traded as high as $655.78 and last traded at $645.1570, with a volume of 399153 shares changing hands. The stock had previously closed at $645.38.

A number of other equities research analysts have also recently commented on the stock. Hsbc Global Res raised shares of Caterpillar from a “hold” rating to a “strong-buy” rating in a research report on Thursday, November 6th. Evercore ISI upped their price target on shares of Caterpillar from $476.00 to $630.00 and gave the company an “outperform” rating in a research note on Monday, November 17th. JPMorgan Chase & Co. increased their price target on shares of Caterpillar from $730.00 to $740.00 and gave the stock an “overweight” rating in a report on Wednesday, January 14th. Bank of America lifted their target price on shares of Caterpillar from $650.00 to $708.00 and gave the company a “buy” rating in a research report on Wednesday, January 14th. Finally, Wolfe Research raised their price target on shares of Caterpillar from $470.00 to $670.00 and gave the company an “outperform” rating in a research note on Friday, January 2nd. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $633.35.

Insiders Place Their Bets

In related news, insider Anthony D. Fassino sold 8,184 shares of the company’s stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $570.18, for a total value of $4,666,353.12. Following the sale, the insider owned 41,512 shares of the company’s stock, valued at approximately $23,669,312.16. This represents a 16.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Lange Bob De sold 14,638 shares of the company’s 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 completion of the sale, the insider owned 80,209 shares in the company, valued at $45,106,333.24. This represents a 15.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 54,729 shares of company stock valued at $31,084,308. Corporate insiders own 0.33% of the company’s stock.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar expanded its AI partnership with Nvidia to embed advanced AI into machines and manufacturing, a move that could accelerate product differentiation, add software/recurring revenue opportunities and improve margins over time. Caterpillar, Nvidia Team Up to Transform Machines and Manufacturing
• Positive Sentiment: Oppenheimer raised its price target to $700 and kept an outperform rating, boosting upside expectations and providing positive analyst momentum for the stock. Oppenheimer adjusts price target on Caterpillar to $700
• Neutral Sentiment: CAT is a scheduled earnings report catalyst — investors should watch Thursday’s release for revenue, margin and guidance changes that could move the stock. Caterpillar (CAT) to Release Quarterly Earnings on Thursday
• Neutral Sentiment: Rothschild & Co Redburn raised its price target to $650 but kept a neutral rating, signaling limited near-term upside from that shop despite the higher target. Rothschild & Co Redburn adjusts Caterpillar PT to $650
• Neutral Sentiment: Recent analysis and media pieces (Zacks/others) highlight why CAT is widely watched and recap its recent outperformance — useful context but not a fresh catalyst. Caterpillar (CAT) Surpasses Market Returns: Some Facts Worth Knowing
• Negative Sentiment: A current employee lawsuit alleges wrongful firing after reporting racial harassment; legal or reputational fallout could be a headwind if it escalates. Caterpillar worker sues, claims firing came after racial harassment report

Institutional Investors Weigh In On Caterpillar

Institutional investors have recently made changes to their positions in the company. Kilter Group LLC bought a new position in Caterpillar during the second quarter worth $27,000. Mid American Wealth Advisory Group Inc. bought a new position in shares of Caterpillar during the 2nd quarter worth about $28,000. Marquette Asset Management LLC raised its position in shares of Caterpillar by 1,060.0% during the third quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock valued at $28,000 after buying an additional 53 shares during the last quarter. IFS Advisors LLC bought a new position in Caterpillar during the fourth quarter valued at about $31,000. Finally, RiverPark Advisors LLC acquired a new stake in Caterpillar during the second quarter worth $32,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Trading Up 0.2%

The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.86 and a current ratio of 1.38. The firm has a market cap of $302.69 billion, a price-to-earnings ratio of 33.18, a P/E/G ratio of 2.43 and a beta of 1.57. The company’s 50-day moving average is $591.07 and its 200-day moving average is $507.95.

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

Caterpillar Dividend Announcement

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

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.