Caterpillar (NYSE:CAT) Stock Price Target Cut by Freedom Broker

Caterpillar (NYSE:CAT) had its price objective cut by Freedom Broker from $980.00 to $800.00 in a research report issued to clients and investors on Monday, Benzinga reports. The brokerage presently has a “buy” rating on the industrial products company’s stock. Freedom Broker‘s price objective indicates a potential upside of 28.47% from the company’s previous close.

Other analysts have also issued reports about the company. Needham & Company LLC set a $980.00 price objective on Caterpillar in a report on Thursday, September 10th. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $749.00 target price on shares of Caterpillar in a report on Wednesday, October 14th. Morgan Stanley lowered their price target on Caterpillar from $915.00 to $675.00 and set an “equal weight” rating for the company in a report on Friday. Robert W. Baird set a $970.00 price target on Caterpillar in a report on Wednesday, August 5th. Finally, Zacks Research lowered Caterpillar from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $898.25.

Caterpillar Price Performance

Shares of NYSE CAT opened at $622.73 on Monday. The company has a quick ratio of 0.88, a current ratio of 1.42 and a debt-to-equity ratio of 1.50. The business has a 50 day moving average price of $783.25 and a two-hundred day moving average price of $807.52. The firm has a market cap of $286.25 billion, a PE ratio of 24.43, a price-to-earnings-growth ratio of 1.07 and a beta of 1.65. Caterpillar has a fifty-two week low of $537.08 and a fifty-two week high of $1,073.46.

Caterpillar (NYSE:CAT) last issued its earnings results on Thursday, October 29th. The industrial products company reported $7.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.06 by $0.14. Caterpillar had a net margin of 15.21% and a return on equity of 59.87%. The business had revenue of $20.68 billion for the quarter, compared to analyst estimates of $20.76 billion. During the same quarter in the prior year, the business posted $4.95 EPS. The company’s revenue for the quarter was up 17.3% on a year-over-year basis. Sell-side analysts expect that Caterpillar will post 27.75 earnings per share for the current fiscal year.

Insider Activity

In related news, CEO Joseph E. Creed sold 32,401 shares of the business’s stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the transaction, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. The trade was a 48.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. acquired a new stake in shares of Caterpillar in the 2nd quarter worth about $40,457,153,000. State Street Corp boosted its stake in Caterpillar by 4.0% during the 2nd 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 period. Bank of America Corp DE bought a new position in Caterpillar in the 2nd quarter worth about $5,818,150,000. Bank of New York Mellon Corp bought a new position in Caterpillar in the 2nd quarter worth about $3,192,710,000. Finally, Legal & General Group Plc acquired a new stake in shares of Caterpillar in the second quarter valued at approximately $2,783,451,000. 70.98% of the stock is currently owned by institutional investors.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s third-quarter revenue increased 17.3% year over year to $20.68 billion, while adjusted earnings of $7.20 per share exceeded consensus by $0.14. The results reinforce the company’s earnings momentum. CAT Q3 deep dive: capacity expansion and backlog growth shape outlook amid market caution
• Positive Sentiment: Third-quarter order backlog reached a record $78 billion, extending delivery timelines well into the next decade. Power-generation sales to end users rose 75%, helped by demand from data centers, supporting Caterpillar’s longer-term growth outlook. Caterpillar: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Truist reiterated a “Buy” rating. A separate global-bank analysis argued that the market may be overlooking Caterpillar’s backlog and secular data-center power demand, with substantial upside possible if execution remains strong. Caterpillar Crashed By 25% Over 6 Months But This Global Banking Giant Says 85% Gains Will Come
• Neutral Sentiment: Truist reduced its price target to $1,027 from $1,100 while retaining its Buy rating. The lower target reflects greater caution but still implies significant potential appreciation from recent trading levels. Could Caterpillar Actually Climb 65% After Its Earnings Slide? Or Is Truist Totally Wrong?
• Negative Sentiment: Royal Bank of Canada and Citigroup trimmed their Caterpillar price targets, adding to investor concerns that valuation, cyclical demand and execution risks may limit near-term gains. RBC price target reduction Citi price target trim
• Negative Sentiment: Morgan Stanley and JPMorgan issued pessimistic forecasts, while an analyst downgrade recently sent CAT shares lower. The cluster of cautious calls is likely weighing on the stock despite the earnings beat. Morgan Stanley forecast JPMorgan forecast

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.