Caterpillar (NYSE:CAT) Stock Gets Price Target Cut from Morgan Stanley

Caterpillar (NYSE:CAT) had its price target trimmed by Morgan Stanley from $915.00 to $675.00 in a report issued on Friday,Benzinga reports. The firm currently has an equal weight rating on the industrial products company’s stock.

Several other research analysts also recently issued reports on CAT. Oppenheimer restated an “outperform” rating and set a $1,009.00 price objective on shares of Caterpillar in a research report on Thursday. Erste Group Bank lowered shares of Caterpillar from a “buy” rating to a “hold” rating in a research report on Monday, July 27th. Freedom Broker raised shares of Caterpillar from a “hold” rating to a “buy” rating and set a $980.00 price target for the company in a report on Thursday, September 10th. Barclays upped their price objective on shares of Caterpillar from $800.00 to $900.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. Finally, Needham & Company LLC set a $980.00 price target on shares of Caterpillar in a research report on Thursday, September 10th. Fifteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $913.96.

Caterpillar Trading Down 0.0%

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

Caterpillar (NYSE:CAT) last released its quarterly earnings data 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 net margin of 15.21% and a return on equity of 59.87%. The firm had revenue of $20.68 billion for the quarter, compared to analyst estimates of $20.76 billion. During the same quarter in the prior year, the business earned $4.95 earnings per share. The business’s quarterly revenue was up 17.3% compared to the same quarter last year. As a group, equities research analysts predict that Caterpillar will post 27.75 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

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 paid a $1.63 dividend. This represents a $6.52 annualized dividend and a dividend yield of 1.0%. The ex-dividend date is Monday, October 26th. Caterpillar’s dividend payout ratio (DPR) is presently 25.58%.

Insiders Place Their Bets

In other news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction on Friday, August 28th. The shares were 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 of the company’s stock, valued at $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Company insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

Hedge funds and other institutional investors have recently modified their holdings of the business. Decker Retirement Planning Inc. raised its position in Caterpillar by 440.0% during the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after acquiring an additional 22 shares in the last quarter. Matrix Trust Co raised its holdings 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 valued at $33,000 after purchasing an additional 15 shares in the last quarter. Axiom Investment Management LLC acquired a new position in Caterpillar during the second quarter worth approximately $36,000. PFS Partners LLC boosted its holdings in Caterpillar by 1,750.0% in the 3rd quarter. PFS Partners LLC now owns 37 shares of the industrial products company’s stock valued at $30,000 after purchasing an additional 35 shares in the last quarter. Finally, Tacita Capital Inc purchased a new stake in shares of Caterpillar in the 2nd quarter worth about $47,000. 70.98% of the stock is currently owned by institutional investors.

Key Headlines Impacting Caterpillar

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.