TLDR
- Bank of America raised its CAT price target to $825 from $735, keeping a Buy rating after strong 2025 earnings.
- Caterpillar posted $67.6 billion in 2025 revenue, up 4%, with its Power & Energy unit surging 23% to $9.4 billion.
- Jim Cramer backed CAT, citing demand for its turbines, though he prefers Cummins (CMI) at current price levels.
- Short interest in CAT jumped roughly 61% in February, and insiders sold over $98 million worth of stock in the past 90 days.
- CAT trades at a P/E of ~40 after a 124% one-year run, with a consensus analyst target of $712.52 and average rating of “Moderate Buy.”
Caterpillar (CAT) has had a big run. The stock is up 124% over the past year and 28% year-to-date, opening at $752.81 on Friday.
After the company dropped its 2025 earnings report, Bank of America moved quickly. It raised its price target on CAT from $735 to $825 and kept its Buy rating in place.
BofA’s reasoning was straightforward. CAT is seeing turbine demand from sectors well beyond data centers, which the bank said makes fears about an oversupply of turbines look less convincing.
The numbers backed that up. Caterpillar posted $67.6 billion in total revenue for 2025, a 4% year-over-year increase. Its Power & Energy segment was the standout, growing 23% to reach $9.4 billion in sales.
Q4 results were also strong. The company reported earnings per share of $5.16 for the quarter, beating the consensus estimate of $4.67. Revenue came in at $19.13 billion, topping estimates of $17.81 billion by a wide margin. That was a 17.9% jump from the same period a year earlier.
Jim Cramer weighed in on CAT recently, saying simply, “We like their stuff.” He pointed to turbines and power-related products as the core of the bull case.
But Cramer also urged some caution. When asked by a club member in January whether to buy in, he said the stock had already made a major move and that he’d prefer to see it come down before adding. He said he currently favors Cummins (CMI) over CAT at these levels.
Cramer also made a pointed comment about retail investor access to the stock, saying Caterpillar’s management should be doing more to bring individual investors in — and that a great American company shouldn’t be sitting at $749.
Analyst Ratings Split
The broader analyst picture is mixed. Sixteen analysts have a Buy rating on CAT, seven have a Hold, and one has a Sell. The consensus price target sits at $712.52, which is actually below where the stock is currently trading.
Wells Fargo raised its target to $870 with an Overweight rating. Daiwa lifted its target to $790. Jefferies set a $750 target with a Buy. Oppenheimer went to $729 with an Outperform. Morgan Stanley, on the other hand, only raised to $425 and kept an Underweight rating.
Wall Street Zen downgraded CAT from Buy to Hold on February 21st.
Insider Selling and Short Interest
Not everyone is leaning in. Insider Denise C. Johnson sold 39,138 shares on February 2nd at an average price of $681.08, totaling over $26.6 million. That was a 47% reduction in her position.
Insider Bob De Lange followed on February 6th, selling 22,656 shares at $720.11 for around $16.3 million. Over the past 90 days, insiders have sold a combined $98.2 million worth of stock.
Short interest also jumped roughly 61% in February, a sign that some traders are betting on a pullback.
Institutional investors own 70.98% of CAT. Erste Asset Management increased its holdings by 32.7% in Q3, adding 33,634 shares. Norges Bank entered a new position worth over $2.1 billion in Q2.
CAT’s 52-week range runs from $267.30 to $789.81. The stock carries a P/E ratio of 40 and a market cap of $350.27 billion. Its next quarterly dividend is $1.51 per share, representing a $6.04 annualized yield of 0.8%.
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