Caterpillar (NYSE:CAT) Stock Falls 2.4% – Here’s Why

Caterpillar Inc. (NYSE:CAT) traded down 2.4% during trading on Tuesday. The company traded as low as $566.12 and last traded at $584.2760. Approximately 3,973,760 shares were traded during trading, an increase of 36% from the average session volume of 2,914,452 shares. The stock had previously closed at $598.88.

Caterpillar News Summary

These are some of the CAT news items that stood out recently:

• Positive Sentiment: AI-related power demand may provide another growth driver: a reported $3.4 billion Anthropic gas-generator agreement could support Caterpillar’s Power & Energy business. The company also reaffirmed expectations for mid-to-high-teens full-year 2026 revenue growth. Article: How AI Power Order Will Impact Caterpillar Investors
• Neutral Sentiment: Bank of America maintained its Buy rating, recognizing machinery strength, but warned Caterpillar’s valuation could fall further amid uncertainty around data-center investment. Article: Caterpillar faces further valuation risks
• Negative Sentiment: Recent market weakness has put the stock under pressure. One report highlights investor Michael Burry’s continued put position, adding to bearish sentiment, while another flags valuation concerns after CAT’s large multi-year run. Article: Michael Burry just made a big move on Caterpillar stock Article: Caterpillar Stock Looks Like A Bargain On Its 222% Run

Wall Street Analyst Weigh In

Several brokerages recently weighed in on CAT. Weiss Ratings cut shares of Caterpillar from a “buy (b)” rating to a “buy (b-)” rating in a research report on Thursday, October 29th. Zacks Research lowered shares of Caterpillar from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 5th. DA Davidson reduced their target price on shares of Caterpillar from $882.00 to $685.00 and set a “neutral” rating on the stock in a report on Monday, November 2nd. Barclays upped their target price on shares of Caterpillar from $800.00 to $900.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. Finally, Freedom Broker lowered their price target on shares of Caterpillar from $980.00 to $800.00 and set a “buy” rating for the company in a report on Monday, November 2nd. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $898.25.

Caterpillar Stock Up 0.7%

The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.88 and a current ratio of 1.42. The company has a fifty day moving average of $748.35 and a two-hundred day moving average of $805.55. The company has a market cap of $277.09 billion, a PE ratio of 23.76, a price-to-earnings-growth ratio of 1.01 and a beta of 1.65.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, beating the consensus estimate of $7.06 by $0.14. The company had revenue of $20.68 billion for the quarter, compared to the consensus estimate of $20.76 billion. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. Caterpillar’s quarterly revenue was up 17.3% on a year-over-year basis. During the same quarter in the prior year, the company posted $4.95 EPS. As a group, analysts anticipate that Caterpillar Inc. will post 27.38 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Investors of record on Monday, October 26th will be paid a $1.63 dividend. The ex-dividend date of this dividend is Monday, October 26th. This represents a $6.52 dividend on an annualized basis and a yield of 1.1%. Caterpillar’s dividend payout ratio is 25.58%.

Insider Activity

In other Caterpillar news, CEO Joseph Creed sold 32,401 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the sale, the chief executive officer owned 34,555 shares of the company’s stock, valued at approximately $27,954,303.90. This trade represents a 48.39% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director James C. Fish, Jr. purchased 1,000 shares of the business’s stock in a transaction dated Monday, November 2nd. The stock was bought at an average price of $620.39 per share, for a total transaction of $620,390.00. Following the completion of the acquisition, the director directly owned 4,714 shares in the company, valued at approximately $2,924,518.46. This trade represents a 26.93% increase in their position. The SEC filing for this purchase provides additional information. 0.33% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Caterpillar

A number of institutional investors have recently added to or reduced their stakes in the stock. Decker Retirement Planning Inc. boosted its stake in Caterpillar by 440.0% in the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company’s stock valued at $29,000 after acquiring an additional 22 shares in the last quarter. Matrix Trust Co increased its position in shares of Caterpillar by 93.8% during the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company’s stock worth $33,000 after purchasing an additional 15 shares in the last quarter. Axiom Investment Management LLC acquired a new position in shares of Caterpillar during the second quarter worth $36,000. PFS Partners LLC lifted its holdings in shares of Caterpillar by 1,750.0% during the 3rd quarter. PFS Partners LLC now owns 37 shares of the industrial products company’s stock valued at $30,000 after purchasing an additional 35 shares during the last quarter. Finally, Tacita Capital Inc purchased a new stake in shares of Caterpillar during the 2nd quarter valued at $47,000. Institutional investors own 70.98% of the company’s stock.

Caterpillar Company Profile

Caterpillar Inc. is a global manufacturer of construction and mining equipment, engines, turbines, and related products and services. Its offerings include earthmoving and material-handling machines, diesel and natural gas engines, power-generation systems, and equipment and technologies used in mining and transportation. The company’s products are commonly sold under the Cat brand. Caterpillar serves customers in markets around the world through a network of independent dealers. Its businesses also provide parts, maintenance, equipment rental, and other support services, as well as financing and insurance through its financial services operations.