Caterpillar (NYSE:CAT) Stock Gets Downgrade from Wall Street Zen

Caterpillar (NYSE:CAT) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Saturday, Wall Street Zen reports.

A number of other research firms also recently weighed in on CAT. Wells Fargo & Company reduced their target price on shares of Caterpillar from $1,155.00 to $840.00 and set an “overweight” rating for the company in a research report on Monday, October 26th. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $749.00 price objective on shares of Caterpillar in a research note on Wednesday, October 14th. Barclays lifted their price target on Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a research report on Thursday, August 6th. Oppenheimer reaffirmed an “outperform” rating and issued a $1,009.00 price objective on shares of Caterpillar in a report on Thursday. Finally, Citigroup reduced their target price on Caterpillar from $950.00 to $800.00 and set a “buy” rating on the stock in a research note on Friday. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $913.96.

Caterpillar Stock Down 0.0%

Shares of NYSE CAT opened at $622.73 on Friday. The firm has a market cap of $286.25 billion, a PE ratio of 24.43, a P/E/G ratio of 1.07 and a beta of 1.65. The company has a quick ratio of 0.88, a current ratio of 1.42 and a debt-to-equity ratio of 1.50. Caterpillar has a 12-month low of $537.08 and a 12-month high of $1,073.46. The company’s fifty day simple moving average is $783.25 and its 200 day simple moving average is $807.52.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, beating the consensus estimate of $7.06 by $0.14. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. The firm had revenue of $20.68 billion for the quarter, compared to analyst estimates of $20.76 billion. During the same quarter last year, the firm posted $4.95 earnings per share. The business’s revenue for the quarter was up 17.3% on a year-over-year basis. As a group, sell-side analysts forecast that Caterpillar will post 27.75 earnings per share for the current fiscal year.

Insider Activity at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the firm’s stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the transaction, the chief executive officer owned 34,555 shares of the company’s stock, valued at $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. 0.33% of the stock is owned by company insiders.

Institutional Trading of Caterpillar

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

More 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.

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.