Caterpillar (NYSE:CAT) Upgraded to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Caterpillar (NYSE:CAT) from a hold rating to a buy rating in a research note published on Saturday morning.

CAT has been the subject of a number of other reports. Royal Bank Of Canada increased their target price on shares of Caterpillar from $587.00 to $658.00 and gave the company a “sector perform” rating in a research report on Friday, January 30th. Truist Financial lifted their target price on shares of Caterpillar from $729.00 to $786.00 and gave the company a “buy” rating in a report on Monday, February 2nd. DA Davidson increased their price target on shares of Caterpillar from $569.00 to $650.00 and gave the stock a “neutral” rating in a research report on Monday, February 2nd. Wells Fargo & Company boosted their target price on Caterpillar from $702.00 to $756.00 and gave the stock an “overweight” rating in a research note on Friday, January 30th. Finally, CICC Research started coverage on shares of Caterpillar in a research report on Friday. They issued an “outperform” rating on the stock. Sixteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $690.90.

Caterpillar Stock Performance

Shares of CAT stock opened at $726.38 on Friday. The business has a fifty day moving average of $617.15 and a 200 day moving average of $529.77. Caterpillar has a 1 year low of $267.30 and a 1 year high of $727.40. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.44 and a quick ratio of 0.94. The firm has a market capitalization of $339.93 billion, a price-to-earnings ratio of 38.60, a price-to-earnings-growth ratio of 1.72 and a beta of 1.58.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Thursday, January 29th. The industrial products company reported $5.16 earnings per share for the quarter, beating analysts’ consensus estimates of $4.67 by $0.49. The business had revenue of $19.13 billion for the quarter, compared to analyst estimates of $17.81 billion. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The company’s revenue was up 17.9% on a year-over-year basis. During the same period in the prior year, the company earned $5.14 earnings per share. As a group, research analysts expect that Caterpillar will post 19.86 earnings per share for the current year.

Caterpillar Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, February 19th. Stockholders of record on Tuesday, January 20th will be paid a $1.51 dividend. This represents a $6.04 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Tuesday, January 20th. Caterpillar’s dividend payout ratio (DPR) is 32.09%.

Insider Transactions at Caterpillar

In other news, insider Denise C. Johnson sold 39,138 shares of the company’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $681.08, for a total transaction of $26,656,109.04. Following the transaction, the insider directly owned 43,350 shares of the company’s stock, valued at $29,524,818. This represents a 47.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of the company’s stock in a transaction dated Wednesday, December 31st. The shares were sold at an average price of $575.06, for a total transaction of $5,750,600.00. Following the completion of the sale, the chief financial officer directly owned 45,460 shares in the company, valued at $26,142,227.60. This trade represents a 18.03% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 120,747 shares of company stock valued at $78,324,008. 0.33% of the stock is owned by company insiders.

Institutional Investors Weigh In On Caterpillar

A number of institutional investors have recently added to or reduced their stakes in the company. Kilter Group LLC purchased a new stake in shares of Caterpillar during the second quarter valued at approximately $27,000. Torren Management LLC bought a new position in shares of Caterpillar in the 4th quarter worth about $27,000. Mid American Wealth Advisory Group Inc. acquired a new position in Caterpillar in the second quarter valued at approximately $28,000. Marquette Asset Management LLC grew its position in shares of Caterpillar by 1,060.0% during the third quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 53 shares during the last quarter. Finally, IFS Advisors LLC bought a new stake in shares of Caterpillar during the fourth quarter valued at approximately $31,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q4 beat and revenue/backlog strength — CAT reported revenue and EPS above expectations and highlighted a record backlog that supports near?term revenue visibility. Zacks: Post Q4 analysis
• Positive Sentiment: AI / data?center tailwind — Coverage highlights growing demand for power and infrastructure tied to AI data?center buildouts, which is a new revenue catalyst beyond traditional equipment cycles. Yahoo: AI data centers
• Positive Sentiment: Analyst upgrade & higher price target — HSBC raised its CAT target to $850 and maintained a buy rating, adding upward pressure to the stock. MarketScreener: HSBC PT raise
• Neutral Sentiment: Market momentum helped lift the name — CAT was one of the contributors to the Dow’s rally today, so some of the move is broad market/sector strength rather than company?specific news. MSN: Dow soars
• Neutral Sentiment: Valuation debate — Multiple writeups note that CAT’s rerating has pushed valuation to a premium, framing risk/reward even as fundamentals improve. This shapes investor caution but doesn’t change the underlying backlog/earnings. MarketBeat: Valuation piece
• Negative Sentiment: Large insider selling — Several senior insiders disclosed multi?million dollar stock sales (e.g., Denise C. Johnson, Bob De Lange), which can signal profit?taking and may create short?term selling pressure. InsiderTrades: Insider sales
• Negative Sentiment: Analyst caution on pace of growth — CFRA and others warn that while financials are strong, underlying growth may not be fast enough to justify some of the recent extreme share?price moves; that comment tempers the rally. YouTube: CFRA caution

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.