Caterpillar (NYSE:CAT) Stock Price Expected to Rise, Morgan Stanley Analyst Says

23 Jan 2026, 12:38 by Renee Jackson · The Cerbat Gem

Caterpillar (NYSE:CAT – Get Free Report) had its price target raised by investment analysts at Morgan Stanley from $395.00 to $400.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage presently has an “underweight” rating on the industrial products company’s stock. Morgan Stanley’s price target indicates a potential downside of 36.56% from the company’s current price.

Other analysts have also recently issued reports about the company. DA Davidson raised their target price on Caterpillar from $408.00 to $569.00 and gave the company a “neutral” rating in a research report on Monday, November 3rd. Barclays raised their price target on Caterpillar from $555.00 to $610.00 and gave the company an “equal weight” rating in a report on Friday. Evercore ISI upped their price objective on shares of Caterpillar from $476.00 to $630.00 and gave the stock an “outperform” rating in a report on Monday, November 17th. Weiss Ratings reissued a “buy (b)” rating on shares of Caterpillar in a research note on Monday, December 29th. Finally, Truist Financial reiterated a “buy” rating and issued a $729.00 price objective (up from $582.00) on shares of Caterpillar in a report on Thursday, October 30th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Caterpillar has an average rating of “Moderate Buy” and an average target price of $637.70.

Check Out Our Latest Stock Analysis on CAT

Caterpillar Stock Performance

Shares of Caterpillar stock traded down $17.85 during trading on Friday, hitting $630.56. 876,490 shares of the stock were exchanged, compared to its average volume of 2,276,923. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.86 and a current ratio of 1.38. Caterpillar has a 12 month low of $267.30 and a 12 month high of $655.78. The stock’s fifty day moving average is $592.97 and its 200 day moving average is $508.92. The stock has a market cap of $295.09 billion, a PE ratio of 32.37, a P/E/G ratio of 2.49 and a beta of 1.57.

Caterpillar (NYSE:CAT – Get Free Report) last posted its earnings results on Monday, November 3rd. The industrial products company reported $4.95 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.52 by $0.43. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. The firm had revenue of $17.64 billion during the quarter, compared to analyst estimates of $16.72 billion. During the same period in the previous year, the business posted $5.17 EPS. Caterpillar’s revenue was up 9.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Caterpillar will post 19.86 EPS for the current year.

Insider Transactions at Caterpillar

In other news, insider Jason Kaiser sold 10,707 shares of the business’s stock in a transaction on Tuesday, November 11th. The stock was sold at an average price of $563.60, for a total transaction of $6,034,465.20. Following the sale, the insider directly owned 8,649 shares of the company’s stock, valued at $4,874,576.40. The trade was a 55.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CAO William E. Schaupp sold 1,200 shares of the company’s stock in a transaction on Wednesday, November 5th. The shares were sold at an average price of $572.22, for a total value of $686,664.00. Following the sale, the chief accounting officer directly owned 1,323 shares of the company’s stock, valued at approximately $757,047.06. This represents a 47.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 54,729 shares of company stock valued at $31,084,308 in the last 90 days. 0.33% of the stock is owned by corporate insiders.

Institutional Trading of Caterpillar

Hedge funds have recently bought and sold shares of the company. Kilter Group LLC purchased a new stake in shares of Caterpillar during the second quarter worth $27,000. Mid American Wealth Advisory Group Inc. purchased a new stake in shares of Caterpillar during the 2nd quarter worth about $28,000. Marquette Asset Management LLC lifted its holdings in shares of Caterpillar by 1,060.0% during the 3rd quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock valued at $28,000 after buying an additional 53 shares during the last quarter. IFS Advisors LLC bought a new stake in shares of Caterpillar in the 4th quarter valued at approximately $31,000. Finally, RiverPark Advisors LLC acquired a new position in Caterpillar in the second quarter worth approximately $32,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

Positive Sentiment: Rothschild & Co Redburn raised its price target to $650, signaling bullish analyst conviction that could support the stock if guidance/earnings validate higher expectations. Rothschild & Co Redburn Increases Caterpillar Price Target to $650
Positive Sentiment: Caterpillar expanded its AI partnership with Nvidia to transform machines and manufacturing — a strategic move reinforcing long-term productivity, software-driven services and higher-margin digital offerings. Caterpillar, Nvidia Team Up to Transform Machines and Manufacturing
Positive Sentiment: Oppenheimer published a note saying Caterpillar’s stock price is expected to rise, providing another buy-side endorsement that could attract buyers ahead of earnings. Caterpillar Stock Price Expected to Rise, Oppenheimer Says
Positive Sentiment: Recent coverage highlights Caterpillar’s tech push (automation, digital services) as a growth driver that can expand margins over time. Building The World Through Technology At Caterpillar
Neutral Sentiment: Caterpillar is scheduled to report quarterly earnings this week — an event likely driving intra-day volatility as investors reposition ahead of results. Caterpillar to Release Quarterly Earnings on Thursday
Neutral Sentiment: Recent commentary assesses Caterpillar’s valuation after strong share-price momentum, which could temper upside if investors view shares as richly priced. Assessing Caterpillar Valuation After Strong Recent Share Price Momentum
Negative Sentiment: Zacks and other analysts expect a sequential decline in earnings, raising the risk of an earnings miss that would pressure the stock. Analysts Estimate Caterpillar to Report a Decline in Earnings
Negative Sentiment: Barclays raised its target to $610 but maintained an equal-weight rating; that target sits below current levels, implying limited upside and contributing to caution among investors. Barclays Adjusts Caterpillar Price Target to $610
Negative Sentiment: A pending lawsuit from a former worker alleging wrongful termination after reporting harassment is a legal/PR headwind to monitor. Caterpillar Worker Sues, Claims Firing Came After Racial Harassment Report

Caterpillar Company Profile

(Get Free Report)

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.