Caterpillar (NYSE:CAT) Rating Lowered to Hold at Zacks Research

Caterpillar (NYSE:CAT) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a report released on Tuesday,Zacks.com reports. Zacks Research also issued estimates for Caterpillar’s Q3 2026 earnings at $6.36 EPS, Q4 2026 earnings at $6.61 EPS, FY2026 earnings at $24.51 EPS, Q1 2027 earnings at $6.15 EPS, Q2 2027 earnings at $7.17 EPS, Q3 2027 earnings at $7.46 EPS, Q4 2027 earnings at $8.22 EPS, FY2027 earnings at $29.01 EPS, Q1 2028 earnings at $7.57 EPS, Q2 2028 earnings at $8.77 EPS and FY2028 earnings at $34.31 EPS.

Other equities analysts also recently issued research reports about the stock. DA Davidson raised their target price on shares of Caterpillar from $650.00 to $845.00 and gave the company a “neutral” rating in a research note on Monday, May 4th. Wells Fargo & Company increased their price target on Caterpillar from $1,050.00 to $1,155.00 and gave the company an “overweight” rating in a report on Tuesday, June 23rd. Barclays raised their price objective on Caterpillar from $700.00 to $800.00 and gave the company an “equal weight” rating in a research report on Friday, May 1st. UBS Group reaffirmed a “neutral” rating and issued a $900.00 target price on shares of Caterpillar in a research report on Tuesday, June 2nd. Finally, Argus raised their target price on Caterpillar from $820.00 to $990.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Fifteen analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat.com, Caterpillar currently has a consensus rating of “Moderate Buy” and an average price target of $980.57.

Caterpillar Stock Performance

Shares of CAT stock opened at $914.19 on Tuesday. Caterpillar has a one year low of $403.32 and a one year high of $1,073.46. The firm has a market capitalization of $421.07 billion, a price-to-earnings ratio of 45.50, a price-to-earnings-growth ratio of 1.83 and a beta of 1.57. 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 company has a 50 day moving average price of $931.98 and a 200 day moving average price of $790.77.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $17.41 billion during the quarter, compared to analyst estimates of $16.53 billion. During the same period in the prior year, the firm posted $4.25 earnings per share. The firm’s revenue was up 22.2% on a year-over-year basis. Sell-side analysts anticipate that Caterpillar will post 24.85 EPS for the current year.

Insider Activity

In other Caterpillar news, insider Jason Kaiser sold 5,642 shares of the firm’s stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $883.03, for a total value of $4,982,055.26. Following the sale, the insider owned 9,594 shares in the company, valued at approximately $8,471,789.82. This trade represents a 37.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the firm’s stock in a transaction that occurred on Wednesday, May 6th. The shares were 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 in the company, valued at approximately $48,631,913.85. This represents a 22.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 95,773 shares of company stock worth $87,642,635 over the last 90 days. Insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of CAT. Matrix Trust Co raised its position in shares of Caterpillar by 93.8% during the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock worth $33,000 after buying an additional 15 shares in the last quarter. Lam Group Inc. bought a new position in shares of Caterpillar in the first quarter valued at approximately $26,000. Ramsey Quantitative Systems acquired a new position in shares of Caterpillar during the second quarter valued at approximately $48,000. Torren Management LLC bought a new stake in Caterpillar during the fourth quarter worth approximately $27,000. Finally, Frazier Financial Advisors LLC lifted its position in Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 33 shares during the period. 70.98% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research lifted Caterpillar’s forward earnings estimates across multiple quarters and fiscal years, signaling expectations for stronger profitability ahead.
• Positive Sentiment: The firm reiterated a Strong-Buy rating on Caterpillar, which can reinforce bullish sentiment toward the stock.
• Neutral Sentiment: Wall Street is still expecting Caterpillar to report a double-digit rise in second-quarter profits when the company reports earnings soon.
• Negative Sentiment: CAT has been under pressure recently, with the stock closing lower in the latest session and trading below its recent level, suggesting broader market or valuation concerns may still be weighing on shares.

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.