Caterpillar (NYSE:CAT) Rating Increased to Strong-Buy at Zacks Research

Zacks Research upgraded shares of Caterpillar (NYSE:CAT) from a hold rating to a strong-buy rating in a research report sent to investors on Monday morning,Zacks.com reports. Zacks Research also issued estimates for Caterpillar’s Q4 2026 earnings at $6.35 EPS, FY2026 earnings at $24.18 EPS, Q1 2027 earnings at $6.06 EPS, Q2 2027 earnings at $7.06 EPS, Q3 2027 earnings at $7.24 EPS, Q4 2027 earnings at $7.93 EPS, FY2027 earnings at $28.28 EPS, Q1 2028 earnings at $7.42 EPS and FY2028 earnings at $33.25 EPS.

A number of other analysts also recently issued reports on CAT. DA Davidson raised their price objective on Caterpillar from $650.00 to $845.00 and gave the stock a “neutral” rating in a research report on Monday, May 4th. Truist Financial set a $1,043.00 price objective on Caterpillar in a research report on Friday, May 1st. Argus raised their price objective on Caterpillar from $820.00 to $990.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Barclays raised their price objective on Caterpillar from $700.00 to $800.00 and gave the stock an “equal weight” rating in a research report on Friday, May 1st. Finally, Jefferies Financial Group raised their price objective on Caterpillar from $900.00 to $1,045.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $933.27.

Caterpillar Stock Down 0.0%

Shares of NYSE:CAT opened at $915.29 on Monday. The business has a 50-day moving average price of $840.65 and a 200 day moving average price of $720.71. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. The company has a market capitalization of $421.57 billion, a price-to-earnings ratio of 45.56, a PEG ratio of 1.81 and a beta of 1.59. Caterpillar has a 12-month low of $355.70 and a 12-month high of $946.83.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.65 by $0.89. The firm had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company’s quarterly revenue was up 22.2% on a year-over-year basis. During the same period last year, the company earned $4.25 EPS. Sell-side analysts expect that Caterpillar will post 24.68 EPS for the current year.

Caterpillar Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th were given a $1.51 dividend. This represents a $6.04 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Monday, April 20th. Caterpillar’s payout ratio is currently 30.06%.

Insider Buying and Selling

In other Caterpillar news, insider Anthony D. Fassino sold 16,283 shares of Caterpillar stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $916.80, for a total value of $14,928,254.40. Following the completion of the transaction, the insider directly owned 46,041 shares of the company’s stock, valued at $42,210,388.80. The trade was a 26.13% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jason Kaiser sold 5,642 shares of Caterpillar stock in a transaction dated 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 completion of the transaction, the insider owned 9,594 shares of the company’s stock, valued at $8,471,789.82. The trade was a 37.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 95,773 shares of company stock worth $87,642,635 over the last 90 days. 0.33% of the stock is owned by insiders.

Hedge Funds Weigh In On Caterpillar

Several hedge funds and other institutional investors have recently made changes to their positions in CAT. Pacific Point Advisors LLC purchased a new position in shares of Caterpillar in the 4th quarter valued at about $579,000. Brighton Jones LLC boosted its stake in shares of Caterpillar by 51.5% in the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock valued at $2,688,000 after buying an additional 2,519 shares during the period. United Bank boosted its stake in shares of Caterpillar by 108.5% in the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company’s stock valued at $1,585,000 after buying an additional 2,125 shares during the period. Schnieders Capital Management LLC. boosted its stake in shares of Caterpillar by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company’s stock valued at $3,551,000 after buying an additional 347 shares during the period. Finally, Alliancebernstein L.P. boosted its stake in shares of Caterpillar by 6.5% in the 2nd quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company’s stock valued at $222,120,000 after buying an additional 34,846 shares during the period. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s Q1 2026 results showed sales up 22% on volume-driven recovery, with Construction and Power & Energy leading gains and signaling continued demand strength. CAT Volumes Gain Strength Across Segments in Q126: More Upside Ahead?
• Positive Sentiment: CAT was named to Zacks’ “Strong Buy” momentum list, reinforcing bullish sentiment around near-term trading momentum. Best Momentum Stocks to Buy for June 9th
• Positive Sentiment: Multiple pieces pointed to Caterpillar as a beneficiary of the AI data center buildout, where demand for power, cooling, and grid equipment could support additional growth. 5 Booming Industrial Stocks Set to Benefit More on AI Data Center Boom
• Positive Sentiment: Broker coverage remained favorable, with articles noting an above-average recommendation for Caterpillar that may help reinforce investor confidence. Brokers Suggest Investing in Caterpillar (CAT): Read This Before Placing a Bet
• Neutral Sentiment: Other coverage compared CAT’s year-to-date performance with peers and broader industrial stocks, but these pieces were mostly performance check-ins rather than new catalysts. Are Industrial Products Stocks Lagging Fanuc (FANUY) This Year?
• Negative Sentiment: The “government issues ‘do not touch’ warning over common caterpillar” article appears unrelated to Caterpillar Inc. and is unlikely to affect the stock directly. Government issues ‘do not touch’ warning over common caterpillar

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.