Erste Group Bank Raises Earnings Estimates for Caterpillar

Caterpillar Inc. (NYSE:CAT) – Equities research analysts at Erste Group Bank increased their FY2027 earnings per share estimates for shares of Caterpillar in a research note issued on Thursday, August 27th. Erste Group Bank analyst H. Engel now forecasts that the industrial products company will post earnings of $32.16 per share for the year, up from their previous forecast of $31.18. Erste Group Bank has a “Hold” rating on the stock. The consensus estimate for Caterpillar’s current full-year earnings is $27.35 per share.

A number of other research analysts also recently commented on CAT. UBS Group increased their price objective on shares of Caterpillar from $900.00 to $925.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. Rothschild & Co Redburn upped their target price on shares of Caterpillar from $700.00 to $950.00 and gave the company a “neutral” rating in a research note on Thursday, May 14th. Royal Bank Of Canada increased their price target on shares of Caterpillar from $877.00 to $897.00 and gave the stock a “sector perform” rating in a research report on Wednesday, August 5th. DA Davidson lifted their price target on Caterpillar from $845.00 to $882.00 and gave the stock a “neutral” rating in a research note on Thursday, August 6th. Finally, Citigroup boosted their price objective on Caterpillar from $1,020.00 to $1,100.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $995.52.

Caterpillar Stock Down 2.4%

Shares of NYSE:CAT opened at $778.59 on Monday. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. The company has a fifty day simple moving average of $885.31 and a 200 day simple moving average of $838.23. The firm has a market cap of $357.89 billion, a PE ratio of 33.50, a price-to-earnings-growth ratio of 1.38 and a beta of 1.60. Caterpillar has a 12-month low of $410.52 and a 12-month high of $1,073.46.

Caterpillar (NYSE:CAT) last announced its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.Caterpillar’s quarterly revenue was up 23.7% on a year-over-year basis. During the same period in the prior year, the company posted $4.72 EPS.

Caterpillar Increases Dividend

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

Insider Activity at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the business’s stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the sale, the chief executive officer owned 34,555 shares of the company’s stock, valued at $27,954,303.90. This represents a 48.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

A number of hedge funds and other institutional investors have recently bought and sold shares of CAT. Pacific Point Advisors LLC bought a new stake in Caterpillar in the fourth quarter valued at $579,000. Brighton Jones LLC increased its holdings in shares of Caterpillar by 51.5% in the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock worth $2,688,000 after acquiring an additional 2,519 shares during the period. United Bank increased its holdings in shares of Caterpillar by 108.5% in the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company’s stock worth $1,585,000 after acquiring an additional 2,125 shares during the period. Schnieders Capital Management LLC. lifted its position in Caterpillar by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company’s stock valued at $3,551,000 after purchasing an additional 347 shares during the last quarter. Finally, Alliancebernstein L.P. boosted its stake in Caterpillar by 6.5% during the 2nd quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company’s stock valued at $222,120,000 after purchasing an additional 34,846 shares during the period. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Higher earnings expectations: Erste Group Bank raised its FY2026 EPS forecast for Caterpillar to $27.50 from $24.78, above the current analyst consensus of $27.14. The firm maintains a “Hold” rating, so the estimate increase is positive but not a strong bullish endorsement. Erste Group Bank Predicts Stronger Earnings for Caterpillar
• Positive Sentiment: Analyst sentiment remains favorable: Caterpillar has received a consensus “Moderate Buy” rating, while a separate analysis highlighted the stock as a potential beneficiary of improving industrial activity. However, brokerage recommendations can be overly optimistic and may have limited immediate impact. Caterpillar Receives Consensus Rating of Moderate Buy
• Positive Sentiment: Improving durable-goods demand: July durable-goods orders increased 1.1%, supporting the view that a manufacturing recovery could benefit Caterpillar’s equipment demand and broader industrial stocks. 4 Industrial Stocks to Grab on Robust Jump in Durable Goods Orders
• Neutral Sentiment: Investors are watching the pullback: Commentary focused on Caterpillar’s recent decline, suggesting the stock’s technical performance and elevated valuation remain important considerations even after strong quarterly earnings. Why We’re Watching the Caterpillar Stock Pullback
• Negative Sentiment: Market-wide pressure: Caterpillar was among the stocks weighing on the Dow as investors reduced exposure to major companies, indicating that broader market sentiment—not just company-specific fundamentals—is contributing to the weakness. NVIDIA Corp., Caterpillar Share Losses Lead Dow’s Fall
• Negative Sentiment: CEO insider selling: CEO Joseph E. Creed sold 32,401 shares for approximately $26.2 million, reducing his position by 48.39%. The sale may concern investors, although insider transactions can reflect personal financial planning rather than a change in the company’s outlook. SEC Insider Transaction Filing

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.