Caterpillar (NYSE:CAT) Given “Buy” Rating at Truist Financial

Truist Financial reiterated their buy rating on shares of Caterpillar (NYSE:CAT) in a research note released on Friday morning,Benzinga reports. Truist Financial currently has a $1,027.00 price objective on the industrial products company’s stock, down from their prior price objective of $1,100.00.

A number of other equities analysts have also recently weighed in on CAT. Erste Group Bank cut Caterpillar from a “buy” rating to a “hold” rating in a report on Monday, July 27th. Sanford C. Bernstein reaffirmed a “market perform” rating and set a $749.00 price objective on shares of Caterpillar in a research note on Wednesday, October 14th. Citigroup dropped their price objective on Caterpillar from $1,100.00 to $950.00 and set a “buy” rating for the company in a research report on Monday, October 12th. Freedom Broker raised shares of Caterpillar from a “hold” rating to a “buy” rating and set a $980.00 target price for the company in a research note on Thursday, September 10th. Finally, UBS Group reduced their target price on shares of Caterpillar from $925.00 to $750.00 and set a “neutral” rating on the stock in a report on Monday. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Caterpillar currently has a consensus rating of “Moderate Buy” and an average target price of $913.96.

Caterpillar Trading Down 3.8%

Shares of CAT opened at $622.73 on Friday. The firm’s 50-day moving average is $783.25 and its two-hundred day moving average is $807.52. The firm has a market capitalization of $286.25 billion, a P/E ratio of 24.43, a PEG ratio of 1.11 and a beta of 1.58. The company has a current ratio of 1.42, a quick ratio of 0.85 and a debt-to-equity ratio of 1.50. Caterpillar has a twelve month low of $537.08 and a twelve month high of $1,073.46.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Thursday, October 29th. The industrial products company reported $7.20 earnings per share for the quarter, topping analysts’ consensus estimates of $7.06 by $0.14. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. The business had revenue of $20.68 billion for the quarter, compared to analysts’ expectations of $20.76 billion. During the same quarter in the prior year, the firm posted $4.95 EPS. The company’s revenue was up 17.3% compared to the same quarter last year. On average, research analysts predict that Caterpillar will post 27.74 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

The firm also recently declared 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 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Monday, October 26th. Caterpillar’s dividend payout ratio is 28.06%.

Insider Transactions at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction on 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 completion of the sale, the chief executive officer directly owned 34,555 shares in the company, valued at approximately $27,954,303.90. This represents a 48.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Several institutional investors and hedge funds have recently modified their holdings of the stock. Decker Retirement Planning Inc. lifted its holdings in Caterpillar by 440.0% in the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock worth $29,000 after buying an additional 22 shares in the last quarter. PFS Partners LLC grew its position in shares of Caterpillar by 1,750.0% during the third quarter. PFS Partners LLC now owns 37 shares of the industrial products company’s stock worth $30,000 after buying an additional 35 shares in the last quarter. Matrix Trust Co increased its position in shares of Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock worth $33,000 after purchasing an additional 15 shares during the last quarter. Cedar Mountain Advisors LLC raised its stake in Caterpillar by 82.1% during the first quarter. Cedar Mountain Advisors LLC now owns 51 shares of the industrial products company’s stock valued at $36,000 after buying an additional 23 shares in the last quarter. Finally, Axiom Investment Management LLC bought a new position in Caterpillar during the second quarter worth $36,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Key Caterpillar News

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.

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.