Caterpillar (NYSE:CAT) Stock Rating Lowered by Robert W. Baird

Caterpillar (NYSE:CAT) was downgraded by research analysts at Robert W. Baird from a “strong-buy” rating to a “hold” rating in a report released on Wednesday,Zacks.com reports.

A number of other equities research analysts have also weighed in on CAT. Barclays upped their target price on shares of Caterpillar from $700.00 to $800.00 and gave the stock an “equal weight” rating in a report on Friday, May 1st. Wall Street Zen raised Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. JPMorgan Chase & Co. increased their price objective on Caterpillar from $1,125.00 to $1,165.00 and gave the stock an “overweight” rating in a research note on Wednesday, June 17th. Jefferies Financial Group lifted their target price on Caterpillar from $900.00 to $1,045.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Finally, DA Davidson increased their price target on Caterpillar from $650.00 to $845.00 and gave the company a “neutral” rating in a research report on Monday, May 4th. Thirteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold 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 $966.29.

Caterpillar Stock Performance

NYSE CAT opened at $782.32 on Wednesday. The company has a market cap of $360.33 billion, a P/E ratio of 38.94, a PEG ratio of 1.65 and a beta of 1.57. The company has a fifty day simple moving average of $926.90 and a 200 day simple moving average of $810.15. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. Caterpillar has a 12-month low of $405.46 and a 12-month high of $1,073.46.

Caterpillar (NYSE:CAT) last released its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, topping the consensus estimate of $4.65 by $0.89. The firm had revenue of $17.41 billion for the quarter, compared to the consensus estimate of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business’s revenue was up 22.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $4.25 earnings per share. Sell-side analysts predict that Caterpillar will post 24.87 earnings per share for the current fiscal year.

Insider Buying and Selling at Caterpillar

In other Caterpillar news, insider Anthony D. Fassino sold 16,283 shares of the business’s stock in a transaction on 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 transaction, the insider owned 46,041 shares of the company’s stock, valued at approximately $42,210,388.80. The trade was a 26.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Denise C. Johnson sold 12,605 shares of the company’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the transaction, the insider owned 49,825 shares of the company’s stock, valued at $45,236,615.75. This trade represents a 20.19% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 95,773 shares of company stock valued at $87,642,635 in the last ninety days. 0.33% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Lam Group Inc. bought a new stake in shares of Caterpillar in the 1st quarter worth approximately $26,000. Torren Management LLC purchased a new stake in Caterpillar in the fourth quarter worth $27,000. Frazier Financial Advisors LLC raised its stake in shares of Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after buying an additional 33 shares during the period. Decker Retirement Planning Inc. raised its stake in shares of Caterpillar by 440.0% in the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after buying an additional 22 shares during the period. Finally, Cornerstone Financial Management LLC bought a new position in shares of Caterpillar during the 4th quarter worth $32,000. 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: Caterpillar announced an investment of up to $10 million in Illinois as part of its five-year, $100 million workforce initiative. The program will support training and recruitment for manufacturing and industrial technician jobs, potentially strengthening the company’s long-term labor pipeline. Caterpillar Invests in the Future of Manufacturing Talent in Illinois
• Positive Sentiment: Some analysts and market commentators remain constructive ahead of Caterpillar’s upcoming earnings report. Zacks upgraded the stock to a Rank #2, citing improving earnings prospects and the potential for an earnings beat. What Makes Caterpillar a New Buy Stock
• Neutral Sentiment: Caterpillar is scheduled to be among next week’s closely watched earnings reports. Investors will focus on order trends, demand, margins, tariffs and whether data-center-related generator sales can offset broader concerns. The Week Ahead: Jobs Data, Top 10 Earnings Reports to Watch
• Neutral Sentiment: Recent coverage highlights Caterpillar’s exposure to technology companies building artificial-intelligence data centers, where its generators can provide backup power and speed construction timelines. Satya Nadella’s Microsoft Needs Power. Joe Creed’s Caterpillar Sells It.
• Negative Sentiment: Baird downgraded CAT to Hold from Buy and cut its price target by $300 to $900. Analyst Mig Dobre cited growing public and political backlash against data-center construction, raising concerns about the durability of AI-related demand that has helped support the stock’s rally. Caterpillar Is Downgraded on Growing Data Center Buildout Backlash
• Negative Sentiment: Valuation concerns are amplifying the downgrade. Commentary noted that Caterpillar trades at a substantial premium to its historical valuation, leaving less room for disappointment if growth expectations or data-center spending cool. Caterpillar Trades at Three Times Its Historical Multiple
• Negative Sentiment: Additional risks include possible supply-chain pressure from China’s rare-earth export restrictions, which could raise costs or complicate sourcing of components used in advanced equipment. Caterpillar Faces Rare Earth Squeeze

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.