Caterpillar (NYSE:CAT) Stock Falls 6.5% – Here’s What Happened

Caterpillar Inc. (NYSE:CAT)’s stock price traded down 6.5% during mid-day trading on Thursday. The stock traded as low as $550.81 and last traded at $552.8850. 6,291,745 shares changed hands during trading, an increase of 117% from the average session volume of 2,894,423 shares. The stock had previously closed at $591.30.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar reported year-over-year growth and an EPS beat, while its backlog reached a record $78.1 billion. Strong demand for power-generation equipment, including from data centers, is supporting plans to expand engine and turbine production. Article: CAT shares fall despite Q3 earnings beat
• Positive Sentiment: Director James Fish bought 1,000 shares for about $620,000, increasing his personal stake by roughly 27%—a potentially reassuring signal amid the stock’s weakness. Article: Caterpillar director purchases shares
• Neutral Sentiment: Caterpillar completed its acquisition of the Fabick Cat dealership and named Steve Ferguson as CEO. The changes may affect its dealer operations, but the near-term financial impact is not clear from the report. Article: Caterpillar completes Fabick Cat acquisition and names CEO
• Negative Sentiment: Morgan Stanley reportedly cut its price target by 26% after earnings. Other coverage points to falling orders and dealers trimming inventory, alongside tariffs, manufacturing costs and production bottlenecks that could limit deliveries and pressure margins despite the large backlog. Article: Morgan Stanley cuts Caterpillar stock price target Article: Q3 call highlights backlog and capacity constraints
• Negative Sentiment: Recent selling also reflects concern that Caterpillar had become an AI-power trade, leaving shares vulnerable as investors rotate toward a more cyclical outlook. The political catalyst cited in one report was not tied to new company-specific news. Article: Caterpillar shares fall amid AI-trade reassessment

Analyst Ratings Changes

Several analysts have recently commented on CAT shares. Robert W. Baird set a $970.00 target price on Caterpillar in a research report on Wednesday, August 5th. Freedom Broker reduced their price objective on Caterpillar from $980.00 to $800.00 and set a “buy” rating for the company in a research note on Monday. UBS Group reduced their price objective on Caterpillar from $925.00 to $750.00 and set a “neutral” rating for the company in a research note on Monday, October 26th. Morgan Stanley decreased their price objective on Caterpillar from $915.00 to $675.00 and set an “equal weight” rating for the company in a research report on Friday, October 30th. Finally, Citigroup lowered their target price on Caterpillar from $950.00 to $800.00 and set a “buy” rating on the stock in a research note on Friday, October 30th. Fifteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $898.25.

Caterpillar Stock Performance

The firm’s fifty day moving average price is $770.75 and its 200 day moving average price is $807.05. The company has a current ratio of 1.42, a quick ratio of 0.88 and a debt-to-equity ratio of 1.50. The firm has a market capitalization of $254.14 billion, a PE ratio of 21.69, a PEG ratio of 1.07 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.06 by $0.14. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. The business had revenue of $20.68 billion during the quarter, compared to analyst estimates of $20.76 billion. During the same period last year, the company earned $4.95 earnings per share. Caterpillar’s quarterly revenue was up 17.3% compared to the same quarter last year. On average, research analysts anticipate that Caterpillar Inc. will post 27.62 earnings per share for the current year.

Caterpillar Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 26th will be given a $1.63 dividend. This represents a $6.52 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Monday, October 26th. Caterpillar’s dividend payout ratio is presently 25.58%.

Insider Transactions at Caterpillar

In other news, Director C Jr purchased 1,000 shares of Caterpillar stock in a transaction dated Monday, November 2nd. The stock was acquired at an average cost of $620.39 per share, for a total transaction of $620,390.00. Following the acquisition, the director directly owned 4,714 shares in the company, valued at $2,924,518.46. This represents a 26.93% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, CEO Joseph E. Creed sold 32,401 shares of the firm’s stock in a transaction that occurred on 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 transaction, the chief executive officer directly owned 34,555 shares in the company, valued at approximately $27,954,303.90. The trade was a 48.39% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.33% of the stock is owned by company insiders.

Institutional Investors Weigh In On Caterpillar

Institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. bought a new position in shares of Caterpillar in the second quarter valued at approximately $40,457,153,000. State Street Corp boosted its holdings in shares of Caterpillar by 4.0% during the 2nd quarter. State Street Corp now owns 36,276,960 shares of the industrial products company’s stock worth $37,120,529,000 after buying an additional 1,396,356 shares during the period. Bank of America Corp DE acquired a new position in Caterpillar in the 2nd quarter valued at $5,818,150,000. Bank of New York Mellon Corp acquired a new position in Caterpillar in the 2nd quarter valued at $3,192,710,000. Finally, Legal & General Group Plc bought a new position in Caterpillar in the 2nd quarter worth $2,783,451,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Company Profile

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.