Caterpillar (NYSE:CAT) Trading Up 1.7% – Still a Buy?

Caterpillar Inc. (NYSE:CAT) rose 1.7% on Friday . The company traded as high as $832.00 and last traded at $828.90. 2,434,610 shares were traded during trading, a decline of 16% from the average session volume of 2,914,494 shares. The stock had previously closed at $815.39.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Higher full-year earnings forecasts: Zacks Research raised its FY2026 EPS estimate to $26.55 from $24.51 and its Q2 2027 estimate to $7.90 from $7.17. Zacks maintained a “Strong Buy” rating, signaling confidence in Caterpillar’s earnings trajectory. Zacks Research Forecasts Stronger Earnings for Caterpillar
• Positive Sentiment: $392 million tariff refund: Caterpillar received a significant refund as duty costs declined. The benefit partially offsets approximately $400 million in tariff expenses incurred during the quarter ended June 30 and could support near-term profitability and cash flow. Caterpillar bags $392M tariff refund as duty costs shrink
• Positive Sentiment: Constructive market backdrop: Expectations for continued S&P 500 strength, resilient earnings growth and potential AI-related capital spending are supportive for industrial companies such as Caterpillar. 5 Reasons the S&P 500 Could Keep Rallying Through Year-End
• Neutral Sentiment: High volatility remains a trading risk: Options activity indicates Caterpillar’s stock could experience unusually large moves in either direction, increasing uncertainty despite favorable fundamental projections. Caterpillar Stock Is Priced To Swing Hundreds Of Dollars Either Way
• Negative Sentiment: AI data-center backlash: Proposed restrictions and political resistance to AI-related power demand in Texas and New York could delay or reduce data-center construction. That creates a risk for Caterpillar’s power-generation and related equipment demand, prompting investors to reassess the company’s growth outlook. What Is Caterpillar Facing As AI Data Center Backlash Grows?
• Negative Sentiment: Near-term estimate reduction: Zacks lowered its Q4 2026 EPS forecast to $6.47 from $6.61, suggesting some caution around the next quarterly results even though its full-year and longer-term estimates improved. Caterpillar analyst estimates

Analysts Set New Price Targets

A number of research firms have recently issued reports on CAT. Zacks Research raised Caterpillar from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 12th. Daiwa Securities Group boosted their target price on Caterpillar from $790.00 to $900.00 and gave the stock a “neutral” rating in a report on Friday, May 1st. Evercore restated an “outperform” rating and issued a $1,103.00 price target on shares of Caterpillar in a research note on Monday, May 11th. HSBC raised their price target on Caterpillar from $850.00 to $1,100.00 in a report on Tuesday, May 5th. Finally, Bank of America upped their price objective on shares of Caterpillar from $930.00 to $989.00 and gave the company a “buy” rating in a report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $995.52.

Caterpillar Trading Up 1.7%

The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The stock has a market capitalization of $381.02 billion, a price-to-earnings ratio of 35.67, a price-to-earnings-growth ratio of 1.45 and a beta of 1.60. The business has a fifty day simple moving average of $908.86 and a 200 day simple moving average of $833.13.

Caterpillar (NYSE:CAT) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts’ consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The company’s revenue was up 23.7% on a year-over-year basis. During the same quarter last year, the firm earned $4.72 earnings per share. As a group, research analysts expect that Caterpillar Inc. will post 27.14 EPS for the current year.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th were paid a $1.63 dividend. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date was Monday, July 20th. This represents a $6.52 annualized dividend and a yield of 0.8%. Caterpillar’s dividend payout ratio is presently 28.06%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in CAT. Decker Retirement Planning Inc. increased its stake in Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock worth $29,000 after acquiring an additional 22 shares during the period. Matrix Trust Co lifted its position in shares of Caterpillar by 93.8% during the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock valued at $33,000 after acquiring an additional 15 shares during the period. Axiom Investment Management LLC acquired a new stake in shares of Caterpillar during the 2nd quarter worth $36,000. Lam Group Inc. acquired a new stake in shares of Caterpillar during the 1st quarter worth $26,000. Finally, Tacita Capital Inc bought a new position in shares of Caterpillar in the second quarter worth $47,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

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.