Brokerages Set Caterpillar Inc. (NYSE:CAT) Price Target at $702.95

Caterpillar Inc. (NYSE:CAT) has been assigned a consensus recommendation of “Moderate Buy” from the twenty-four analysts that are covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, seven have given a hold recommendation and sixteen have issued a buy recommendation on the company. The average 1-year target price among brokerages that have issued a report on the stock in the last year is $702.95.

A number of research firms have recently commented on CAT. Evercore boosted their target price on shares of Caterpillar from $476.00 to $630.00 and gave the stock an “outperform” rating in a report on Monday, November 17th. Raymond James Financial restated a “market perform” rating on shares of Caterpillar in a research report on Wednesday, January 7th. Bank of America boosted their target price on Caterpillar from $735.00 to $825.00 and gave the company a “buy” rating in a research report on Tuesday, February 10th. Weiss Ratings restated a “buy (b)” rating on shares of Caterpillar in a research report on Monday, December 29th. Finally, Robert W. Baird set a $805.00 price objective on shares of Caterpillar in a research report on Friday, January 30th.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: AI/data-center demand — Reports note that AI-driven capital expenditures (hyperscaler data-center construction and mining electrification) are boosting demand for large construction and mining equipment, a structural tailwind for Caterpillar’s sales and backlog. Caterpillar Rides AI Data Center Boom With Priced In Expectations
• Positive Sentiment: Analyst upgrades and price-target lift — Bank of America raised its price target (and an upgrade triggered a new 1‑year high mention), adding buy-side momentum and validating higher valuations for CAT. Bank of America Raises Caterpillar (NYSE:CAT) Price Target to $825.00
• Positive Sentiment: Upgraded earnings estimates — Zacks refreshed its model, raising Q1 and multi‑year EPS forecasts for CAT (FY2026–FY2028), which supports higher forward earnings multiples and gives investors conviction about near‑term profitability. The Zacks Analyst Alphabet, Caterpillar,T-Mobile US and Onfolio
• Positive Sentiment: Market leadership / headline performance — Coverage and headlines highlight CAT as a top contributor to the Dow’s gains, which can attract momentum flows and index-related buying. Why Caterpillar’s Stock Is Benefiting From the AI Boom
• Neutral Sentiment: Macro data mixed — Recent reports show stronger January jobs but downward revisions to 2025 job growth and lingering inflation above 2%. That creates uncertainty around Fed policy; durable capex demand can offset tighter monetary risk, but macro backdrop remains a cross‑current. Wall Street Roundup: Economic Data, Earnings Updates
• Neutral Sentiment: Broad market momentum — Commentary about the Dow passing 50,000 and an AI‑led bull market supports risk appetite broadly, which benefits cyclical industrials like CAT but may also price in further outperformance. Dow 50,000 Shows This AI-Led Bull Market Has Plenty Of Room To Run
• Negative Sentiment: Valuation/“priced-in” concerns and stock-specific risks — Some coverage warns that much of the AI benefit is already reflected in CAT’s share price and flags potential red flags (valuation, execution risk, or reliance on cyclical capex), which could amplify pullbacks if growth disappoints. Watch Out For These Red Flags In CAT Stock

Caterpillar Trading Up 2.1%

Shares of NYSE:CAT opened at $774.37 on Friday. The company has a market cap of $362.39 billion, a PE ratio of 41.15, a price-to-earnings-growth ratio of 1.83 and a beta of 1.58. Caterpillar has a 12-month low of $267.30 and a 12-month high of $789.81. The stock has a 50 day moving average of $634.09 and a 200 day moving average of $541.97. The company has a current ratio of 1.44, a quick ratio of 0.94 and a debt-to-equity ratio of 1.44.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, topping analysts’ consensus estimates of $4.67 by $0.49. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The company had revenue of $19.13 billion for the quarter, compared to analysts’ expectations of $17.81 billion. During the same period in the previous year, the firm earned $5.14 EPS. The firm’s revenue was up 17.9% compared to the same quarter last year. As a group, equities research analysts expect that Caterpillar will post 19.86 EPS for the current year.

Caterpillar Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Investors of record on Tuesday, January 20th will be issued a dividend of $1.51 per share. The ex-dividend date is Tuesday, January 20th. This represents a $6.04 dividend on an annualized basis and a yield of 0.8%. Caterpillar’s payout ratio is presently 32.09%.

Insider Activity at Caterpillar

In other Caterpillar news, insider Lange Bob De sold 22,656 shares of the company’s stock in a transaction on Friday, February 6th. The stock was sold at an average price of $720.11, for a total value of $16,314,812.16. Following the completion of the sale, the insider directly owned 79,953 shares in the company, valued at approximately $57,574,954.83. This represents a 22.08% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of the firm’s stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $575.06, for a total value of $5,750,600.00. Following the transaction, the chief financial officer owned 45,460 shares in the company, valued at approximately $26,142,227.60. This represents a 18.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 130,545 shares of company stock valued at $88,294,733 in the last quarter. Corporate insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

Several institutional investors have recently bought and sold shares of CAT. Kilter Group LLC purchased a new position in shares of Caterpillar in the 2nd quarter worth approximately $27,000. Torren Management LLC acquired a new stake in Caterpillar in the fourth quarter valued at approximately $27,000. Mid American Wealth Advisory Group Inc. purchased a new position in Caterpillar in the second quarter worth $28,000. Marquette Asset Management LLC increased its position in shares of Caterpillar by 1,060.0% during the third quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 53 shares in the last quarter. Finally, Frazier Financial Advisors LLC lifted its holdings in shares of Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 33 shares during the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

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.