Wells Fargo Cuts Caterpillar (CAT) Price Target to $840
Key Points
- Wells Fargo cut its price target on Caterpillar Inc. to $840, down from $1155, reflecting a significant adjustment in expectations for the stock.
- The stock recently traded at about $694.97, which is below the new target and 35.3% off its 52-week high of $1073.46.
- Analysts currently have a consensus buy rating on Caterpillar, with a mean price target of $945.76, suggesting potential upside from current levels.
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On October 26, 2026, Wells Fargo lowered its price target on Caterpillar Inc. (CAT) to $840 from $1155. The firm maintained its Overweight rating in its research note on the same day. This change comes as the stock trades near recent levels, closing at $694.10 on the event date.
CAT
Caterpillar Inc.
Wells Fargo vs. the S&P 500
Hypothetical returns from Wells Fargo's disclosed trades, not real profit or advice. How we model this.
Caterpillar Inc.'s Trade Position
Wells Fargo's adjustment represents a notable drop in expectations for the stock. The new target of $840 is significantly lower than the previous target, indicating a shift in the firm's outlook. Caterpillar's shares have been trading below both the new target and the 50-day moving average, which is currently around $799.74, suggesting that the stock has faced challenges in gaining momentum.
Other Institutional Activity in Caterpillar Inc.
Several other institutional players have also made moves with Caterpillar shares. State Farm Mutual Automobile Insurance Co reduced its holdings by 55,346 shares, now holding about 14.5 million shares worth approximately $10.1 billion. Fisher Asset Management, LLC added 166,197 shares, increasing its total to about 9.9 million shares valued at around $6.9 billion. The Gates Foundation Trust maintained its position with 6.4 million shares valued at about $4.4 billion.
Caterpillar Inc. Stock Down 1.3%
Caterpillar's stock recently traded around $694.97, which is about equal to its closing price of $694.10 on October 26, 2026. This price is approximately 35.3% below its 52-week high of $1073.46, highlighting a significant gap between the current trading level and the newly lowered price target. The shares are also trading below both the 50-day and 200-day moving averages, indicating a bearish trend in the stock's performance.
$CAT price target
Caterpillar Inc. daily closes and this analyst's $840 target. Not advice.
Recent Earnings
In its latest earnings report, Caterpillar reported trailing twelve-month revenue of approximately $74.7 billion and an EPS of $23.23. The company has shown a robust revenue growth of 24% year-over-year. Caterpillar's next earnings report is scheduled for October 29, 2026, which will provide further insights into its financial health.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
7 analysts raised price targets.
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EPS & revenue
EPS beat estimates by 18.8%. Revenue beat estimates by 3.8%.
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Profit surprise
EBITDA beat by 32 percent. Operating income beat by 34 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
1 upgrade, 7 target raises.
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Earnings quality
Positive free cash flow.
Earnings Call Summary
Caterpillar had a strong first quarter with revenue of 17.4 billion dollars, up 22 percent from last year, and adjusted earnings per share of 5.54 dollars, beating consensus of 4.55 dollars. Backlog hit a record 63 billion dollars, with particularly strong demand for power generation equipment serving data centers. Management is investing aggressively in capacity expansion because customers are committing to long term orders for backup power, prime power, and gas compression applications across multiple industries.
Guidance Caterpillar raised its 2026 sales outlook to low double digit growth from expectations set in January. The company expects continued growth across all three segments driven by strong backlog and resilient end markets, especially in power generation for data centers. Management plans to expand large reciprocating engine capacity to nearly 3 times 2024 levels by 2030.
Clearly positive report. Results were better than expected, though the forward reset is not the strongest.
Insider Buying and Selling at Caterpillar Inc.
Recent insider transactions included several sales by executives. Denise C. Johnson sold a total of 18,801 shares on May 13 and May 14, valued at approximately $5.6 million and $11.4 million, respectively. CEO Joseph E. Creed also sold 32,401 shares on August 28, 2026, valued at about $26.2 million. These sales occurred before the recent price adjustments by analysts.
Analysts Set New Price Targets
On the same day as Wells Fargo's downgrade, other analysts have maintained their ratings. Freedom Broker upgraded the stock to Buy with a target of $980 on September 10, 2026. Citigroup and Oppenheimer both maintained their Buy ratings but lowered their targets to $950 and $1009, respectively. The current consensus rating remains a Buy, with a mean price target of $945.76.
About Caterpillar Inc.
Caterpillar Inc. is a leading manufacturer of construction and mining equipment, as well as engines and locomotives. Headquartered in Irving, Texas, the company serves customers worldwide across various industries, making it a significant player in the industrial sector. The recent adjustments by analysts reflect changing market conditions and expectations for Caterpillar's performance.
Bottom Line
Investors should monitor Caterpillar's upcoming earnings report on October 29, 2026, for further insights into its financial outlook. The recent changes in analyst targets suggest a cautious approach to the stock, especially considering the significant gap between its current trading price and the new target set by Wells Fargo.
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Source: Wells Fargo's rating change on $CAT (Oct 26, 2026). Written by software, not financial advice. How we make alerts