Erste Group Bank Forecasts Stronger Earnings for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Erste Group Bank raised their FY2026 earnings per share (EPS) estimates for Caterpillar in a research report issued to clients and investors on Wednesday, February 18th. Erste Group Bank analyst H. Engel now expects that the industrial products company will post earnings per share of $22.61 for the year, up from their previous estimate of $22.57. The consensus estimate for Caterpillar’s current full-year earnings is $19.86 per share.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Thursday, January 29th. The industrial products company reported $5.16 earnings per share for the quarter, topping analysts’ consensus estimates of $4.67 by $0.49. The company had revenue of $19.13 billion during the quarter, compared to the consensus estimate of $17.81 billion. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The business’s quarterly revenue was up 17.9% on a year-over-year basis. During the same period last year, the business earned $5.14 EPS.

CAT has been the subject of a number of other reports. Wolfe Research upped their price objective on shares of Caterpillar from $470.00 to $670.00 and gave the stock an “outperform” rating in a report on Friday, January 2nd. Barclays upped their price target on Caterpillar from $610.00 to $625.00 and gave the stock an “equal weight” rating in a research note on Friday, January 30th. Weiss Ratings reissued a “buy (b)” rating on shares of Caterpillar in a research note on Monday, December 29th. Robert W. Baird set a $805.00 target price on Caterpillar in a report on Friday, January 30th. Finally, Sanford C. Bernstein reiterated a “market perform” rating and set a $678.00 price target on shares of Caterpillar in a report on Friday, January 30th. Sixteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Caterpillar currently has a consensus rating of “Moderate Buy” and an average price target of $702.95.

Caterpillar Stock Performance

CAT stock opened at $755.72 on Monday. The firm has a 50 day moving average of $653.06 and a two-hundred day moving average of $555.96. Caterpillar has a 12 month low of $267.30 and a 12 month high of $789.81. The company has a market capitalization of $351.63 billion, a price-to-earnings ratio of 40.16, a P/E/G ratio of 1.80 and a beta of 1.58. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44.

Institutional Trading of Caterpillar

Hedge funds have recently modified their holdings of the company. Norges Bank bought a new stake in Caterpillar during the 2nd quarter valued at approximately $2,165,899,000. Illinois Municipal Retirement Fund boosted its position in shares of Caterpillar by 7.3% during the third quarter. Illinois Municipal Retirement Fund now owns 17,262 shares of the industrial products company’s stock valued at $8,237,000 after purchasing an additional 1,181 shares in the last quarter. Groupe la Francaise grew its stake in Caterpillar by 82.0% in the second quarter. Groupe la Francaise now owns 27,246 shares of the industrial products company’s stock worth $10,820,000 after purchasing an additional 12,278 shares during the period. Union Bancaire Privee UBP SA raised its holdings in Caterpillar by 155.9% in the third quarter. Union Bancaire Privee UBP SA now owns 47,231 shares of the industrial products company’s stock worth $21,014,000 after purchasing an additional 28,773 shares in the last quarter. Finally, Caprock Group LLC bought a new stake in shares of Caterpillar during the 3rd quarter valued at $8,893,000. Institutional investors own 70.98% of the company’s stock.

Insider Buying and Selling at Caterpillar

In other news, insider Anthony D. Fassino sold 10,671 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $680.45, for a total transaction of $7,261,081.95. Following the completion of the transaction, the insider owned 41,151 shares of the company’s stock, valued at approximately $28,001,197.95. This represents a 20.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Denise C. Johnson sold 39,138 shares of the stock in a transaction dated 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 completion of the sale, the insider owned 43,350 shares of the company’s stock, valued at approximately $29,524,818. The trade was a 47.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 141,172 shares of company stock valued at $96,514,673 in the last three months. 0.33% of the stock is owned by insiders.

Caterpillar Announces Dividend

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

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Erste Group lifted its FY2026 EPS estimate for Caterpillar, which supports higher forward earnings expectations and can help justify the multiple investors are paying. Caterpillar FY2026 EPS Estimate Lifted by Erste Group Bank
• Positive Sentiment: Zacks highlights Caterpillar’s combination of earnings growth and price strength, flagging it as a stock to watch — a narrative that can attract momentum and institutional flows. Earnings Growth & Price Strength Make Caterpillar (CAT) a Stock to Watch
• Positive Sentiment: Media coverage (including Jim Cramer) reports hedge funds buying Caterpillar, signaling institutional demand that can prop up the share price and reduce downside. Hedge Funds Are Buying Power From Caterpillar, (CAT) Says Jim Cramer
• Neutral Sentiment: Benzinga aggregates analyst expectations for Caterpillar’s future — useful context on consensus targets and ratings but mixed in immediate directional impact unless analysts change price targets. Analyst Expectations For Caterpillar’s Future
• Negative Sentiment: A valuation-focused piece points out that recent powerful short- and long-term gains have pushed Caterpillar’s multiples higher — a reminder that elevated P/E and stretched sentiment could prompt profit-taking or slower near-term upside. Assessing Caterpillar (CAT) Valuation After Powerful Short And Long Term Share Price Gains

About Caterpillar

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.