Royal Bank Of Canada Issues Pessimistic Forecast for Caterpillar (NYSE:CAT) Stock Price

Caterpillar (NYSE:CAT) had its target price lowered by equities researchers at Royal Bank Of Canada from $897.00 to $722.00 in a research report issued on Friday, Benzinga reports. The firm presently has a “sector perform” rating on the industrial products company’s stock. Royal Bank Of Canada‘s price objective indicates a potential upside of 14.26% from the stock’s previous close.

CAT has been the topic of a number of other research reports. Citigroup lowered their price target on Caterpillar from $1,100.00 to $950.00 and set a “buy” rating on the stock in a report on Monday, October 12th. Barclays raised their target price on shares of Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 6th. DA Davidson lifted their price target on Caterpillar from $845.00 to $882.00 and gave the company a “neutral” rating in a research note on Thursday, August 6th. President Capital initiated coverage on shares of Caterpillar in a research report on Friday, September 18th. They set a “buy” rating and a $999.00 target price on the stock. Finally, Oppenheimer restated an “outperform” rating and issued a $1,009.00 price target on shares of Caterpillar in a research report on Thursday. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $937.08.

Caterpillar Stock Performance

NYSE:CAT traded down $15.49 during trading hours on Friday, reaching $631.90. 1,912,802 shares of the company’s stock were exchanged, compared to its average volume of 2,842,631. Caterpillar has a 1-year low of $537.08 and a 1-year high of $1,073.46. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The firm has a market capitalization of $290.47 billion, a price-to-earnings ratio of 27.20, a P/E/G ratio of 1.22 and a beta of 1.58. The company has a 50-day moving average of $787.07 and a 200 day moving average of $807.56.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, beating analysts’ consensus estimates of $7.06 by $0.14. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The company had revenue of $20.68 billion for the quarter, compared to analyst estimates of $20.76 billion. During the same period in the previous year, the business posted $4.95 earnings per share. Caterpillar’s quarterly revenue was up 17.3% on a year-over-year basis. Research analysts anticipate that Caterpillar will post 27.74 EPS for the current year.

Insider Activity at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the company’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer directly owned 34,555 shares in the company, valued at approximately $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.33% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Caterpillar

A number of large investors have recently bought and sold shares of CAT. BlackRock Inc. purchased a new position in shares of Caterpillar in the 2nd quarter valued at $40,457,153,000. State Street Corp boosted its holdings in Caterpillar by 4.0% in the second quarter. State Street Corp now owns 36,276,960 shares of the industrial products company’s stock valued at $37,120,529,000 after purchasing an additional 1,396,356 shares during the last quarter. Bank of America Corp DE acquired a new stake in shares of Caterpillar during the second quarter worth approximately $5,818,150,000. Bank of New York Mellon Corp bought a new stake in shares of Caterpillar in the 2nd quarter worth about $3,192,710,000. Finally, Legal & General Group Plc bought a new stake in Caterpillar in the second quarter valued at about $2,783,451,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Third-quarter sales and revenues rose 17% year over year to approximately $20.7 billion, while adjusted profit per share of $7.20 exceeded analysts’ expectations. Higher volume, pricing and operating leverage lifted profitability. Caterpillar Reports Third-Quarter 2026 Results
• Positive Sentiment: Demand tied to data centers remains a key growth driver: power-generation sales increased about 30%, and Caterpillar reported a record backlog of roughly $78 billion extending into 2029–2030. Management also returned $2 billion through share repurchases and dividends during the quarter. Caterpillar posts highest sales quarter ever
• Neutral Sentiment: Some analysts see substantial long-term upside because the backlog could support revenue growth and margin expansion, with consensus estimates calling for approximately 17.8% revenue growth in fiscal 2026 and 10.8% in fiscal 2027. However, the stock’s valuation leaves limited room for execution setbacks.
• Negative Sentiment: Revenue of $20.68 billion came in below the approximately $20.76 billion consensus estimate, and quarterly growth slowed from 24% in the prior quarter. Investors had expected Caterpillar to raise its annual outlook, but management maintained its existing forecast and characterized fourth-quarter revenue growth as moderate. Caterpillar Sales Jump, But Wall Street Wanted More
• Negative Sentiment: Rising inventories, tariff-related costs and concerns about the pace of backlog conversion are adding pressure to the outlook. After a major prior rally, investors appear to be taking profits in AI-linked industrial stocks and demanding greater valuation support. Reports also indicate substantially more insider selling than buying in recent months.

About Caterpillar

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.