Caterpillar (NYSE:CAT) Downgraded by Wall Street Zen to Hold

Wall Street Zen downgraded shares of Caterpillar (NYSE:CAT) from a buy rating to a hold rating in a report published on Saturday,Wall Street Zen reports.

Several other brokerages have also recently issued reports on CAT. Zacks Research cut Caterpillar from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Needham & Company LLC set a $980.00 price objective on Caterpillar in a research note on Thursday, September 10th. UBS Group dropped their price objective on Caterpillar from $925.00 to $750.00 and set a “neutral” rating for the company in a report on Monday, October 26th. Royal Bank Of Canada cut their target price on Caterpillar from $897.00 to $722.00 and set a “sector perform” rating for the company in a research report on Friday. Finally, Sanford C. Bernstein reissued a “market perform” rating and set a $749.00 target price on shares of Caterpillar in a report on Wednesday, October 14th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $913.96.

Caterpillar Price Performance

Shares of Caterpillar stock opened at $622.73 on Friday. Caterpillar has a twelve month low of $537.08 and a twelve month high of $1,073.46. The company has a quick ratio of 0.85, a current ratio of 1.42 and a debt-to-equity ratio of 1.50. The company has a 50-day simple moving average of $783.25 and a two-hundred day simple moving average of $807.52. The stock has a market capitalization of $286.25 billion, a price-to-earnings ratio of 24.43, a price-to-earnings-growth ratio of 1.07 and a beta of 1.58.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data 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 firm had revenue of $20.68 billion during the quarter, compared to the consensus estimate of $20.76 billion. During the same quarter in the previous year, the firm posted $4.95 EPS. The business’s revenue for the quarter was up 17.3% compared to the same quarter last year. Analysts forecast that Caterpillar will post 27.75 EPS for the current year.

Caterpillar Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Monday, October 26th will be given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Monday, October 26th. Caterpillar’s dividend payout ratio is currently 25.58%.

Insiders Place Their Bets

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction dated 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 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 ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.33% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of Caterpillar in the second quarter worth about $40,457,153,000. State Street Corp boosted its holdings 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 acquiring an additional 1,396,356 shares during the period. Bank of America Corp DE purchased a new stake in Caterpillar during the 2nd quarter valued at about $5,818,150,000. Bank of New York Mellon Corp bought a new position in Caterpillar during the 2nd quarter worth approximately $3,192,710,000. Finally, Legal & General Group Plc bought a new position in Caterpillar during the 2nd quarter worth approximately $2,783,451,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar reported third-quarter sales and revenues of approximately $20.7 billion, up 17% year over year, while adjusted earnings per share of $7.20 exceeded the $7.06 consensus estimate. Power-generation sales increased 30%, helped by data-center demand, and the company reported a record $78.1 billion backlog. Caterpillar Reports Third-Quarter 2026 Results
• Positive Sentiment: Truist Financial reaffirmed its “buy” rating, while Citigroup maintained a “buy” rating despite lowering its price target to $800. Both targets remain above the current trading level, suggesting some analysts see substantial long-term upside.
• Neutral Sentiment: Bank of America said Caterpillar’s earnings power remains intact, and analysts expect revenue and EPS growth as the backlog converts. However, the backlog may extend into 2029–2030, meaning investors could wait longer for the full financial benefit.
• Negative Sentiment: Management left its annual growth outlook unchanged and indicated only “moderate” fourth-quarter revenue growth. Investors had expected a stronger forecast or an upgrade, so the unchanged guidance overshadowed the earnings beat. Caterpillar Tops Quarterly Profit View
• Negative Sentiment: Revenue came in slightly below consensus, while tariff expenses and rising inventories added to concerns about costs, demand timing and near-term margins.
• Negative Sentiment: Several firms reduced their targets: Morgan Stanley cut its target to $675 and rated CAT “equal weight,” RBC lowered its target to $722 with a “sector perform” rating, and Truist reduced its target to $1,027. These cuts reinforce concerns that the stock’s premium valuation had become difficult to justify without faster growth.

Caterpillar Company Profile

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.