Caterpillar (NYSE:CAT) Cut to “Hold” at Zacks Research

Zacks Research cut shares of Caterpillar (NYSE:CAT) from a strong-buy rating to a hold rating in a report issued on Monday morning,Zacks reports. Zacks Research also issued estimates for Caterpillar’s Q3 2026 earnings at $6.78 EPS, Q4 2026 earnings at $6.88 EPS, FY2026 earnings at $27.36 EPS, Q1 2027 earnings at $6.48 EPS, Q2 2027 earnings at $8.52 EPS, Q3 2027 earnings at $8.40 EPS, Q4 2027 earnings at $9.04 EPS, FY2027 earnings at $32.44 EPS and Q3 2028 earnings at $10.16 EPS.

Several other equities research analysts have also recently weighed in on CAT. Freedom Broker upgraded shares of Caterpillar from a “hold” rating to a “buy” rating and set a $980.00 price objective for the company in a research report on Thursday, September 10th. JPMorgan Chase & Co. boosted their target price on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the company an “overweight” rating in a report on Wednesday, June 17th. Royal Bank Of Canada upped their price target on shares of Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a research report on Wednesday, August 5th. Erste Group Bank downgraded Caterpillar from a “buy” rating to a “hold” rating in a report on Monday, July 27th. Finally, DA Davidson lifted their price objective on Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a research report on Thursday, August 6th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $989.17.

Caterpillar Price Performance

Caterpillar stock opened at $813.03 on Monday. The stock’s 50 day moving average is $822.83 and its 200 day moving average is $853.15. Caterpillar has a one year low of $489.34 and a one year high of $1,073.46. The firm has a market cap of $373.72 billion, a P/E ratio of 34.98, a P/E/G ratio of 1.49 and a beta of 1.58. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85.

Caterpillar (NYSE:CAT) last released its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. The business had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The company’s revenue for the quarter was up 23.7% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $4.72 EPS. As a group, research analysts expect that Caterpillar will post 27.5 EPS for the current year.

Insider Buying and Selling

In other 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 sale, 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Several hedge funds have recently bought and sold shares of CAT. Venture Visionary Partners LLC increased its stake in Caterpillar by 6.3% during the 3rd quarter. Venture Visionary Partners LLC now owns 24,185 shares of the industrial products company’s stock valued at $19,610,000 after purchasing an additional 1,430 shares in the last quarter. Steph & Co. lifted its stake in shares of Caterpillar by 1,512.2% in the third quarter. Steph & Co. now owns 661 shares of the industrial products company’s stock valued at $536,000 after buying an additional 620 shares in the last quarter. Elevation Wealth Partners LLC grew its holdings in shares of Caterpillar by 77.2% during the third quarter. Elevation Wealth Partners LLC now owns 296 shares of the industrial products company’s stock valued at $240,000 after buying an additional 129 shares during the last quarter. Cooper Financial Group increased its position in shares of Caterpillar by 8.6% during the third quarter. Cooper Financial Group now owns 5,097 shares of the industrial products company’s stock worth $4,132,000 after acquiring an additional 403 shares in the last quarter. Finally, Canandaigua National Trust Co of Florida bought a new stake in shares of Caterpillar during the third quarter worth about $2,134,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar announced a $1 billion expansion of its compact-equipment manufacturing operations in North Carolina. The investment will add advanced manufacturing, automation and digital capabilities, supporting U.S. production, workforce development and anticipated customer demand. Caterpillar Commits $1 Billion to Expand North Carolina Manufacturing
• Positive Sentiment: Zacks Research raised its Caterpillar earnings forecasts across several periods, including fiscal 2026 EPS to $27.36 from $27.01 and fiscal 2027 EPS to $32.44 from $31.43. The firm also increased estimates for upcoming quarters and retained a generally bullish long-term view, although its current-quarter rating was reported as “Hold.” Caterpillar Earnings Estimate Revisions
• Positive Sentiment: Commentary from Jim Cramer and other analysts highlighted Caterpillar’s potential exposure to data-center power demand, while one Seeking Alpha analysis upgraded the stock ahead of earnings. Caterpillar is also collaborating with CoreWeave on physical-AI applications, which could support longer-term technology and productivity initiatives. Jim Cramer Sees a Possible Buying Opportunity in Caterpillar
• Neutral Sentiment: The Federal Trade Commission and Department of Agriculture are seeking public information about the farm-equipment market. The inquiry does not establish wrongdoing, but it adds uncertainty for manufacturers such as Caterpillar and Deere as investors assess possible future regulation. Caterpillar and Deere Stock Fall as Regulatory Pressure Continues
• Negative Sentiment: Rising long-term Treasury yields triggered a broader industrial-sector selloff. Higher financing costs can reduce demand for large construction and mining equipment, particularly when purchases depend on credit, making Caterpillar especially sensitive to interest-rate expectations. Caterpillar Drops as Industrials Sell Off
• Negative Sentiment: Zacks Research cut its stock rating from “Strong Buy” to “Hold,” tempering the impact of its higher earnings estimates. Caterpillar’s elevated valuation also leaves the stock vulnerable to profit-taking when interest rates rise or market sentiment toward cyclical industrial companies weakens.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.

The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.