Caterpillar (NYSE:CAT) Shares Down 2.6% – Here’s Why

Caterpillar Inc. (NYSE:CAT) shares traded down 2.6% during mid-day trading on Thursday . The stock traded as low as $948.78 and last traded at $965.4420. Approximately 3,425,830 shares were traded during mid-day trading, an increase of 18% from the average daily volume of 2,902,456 shares. The stock had previously closed at $991.41.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Truist raised its price target on Caterpillar to $1,218 from $1,043 and kept a buy rating, reinforcing bullish sentiment around the stock’s earnings and growth outlook. Article Link
• Positive Sentiment: Several reports highlighted Caterpillar as a momentum, long-term, and “trending” stock, suggesting investor interest remains strong and could help keep shares elevated. Article Link
• Positive Sentiment: Analysts and commentators pointed to Caterpillar’s role in powering data centers and other AI-related infrastructure, a theme that has helped explain the stock’s strong run. Article Link
• Positive Sentiment: Caterpillar also received fresh praise for strong backlog, earnings growth, and long-term expansion plans, which supports the case for continued upside. Article Link
• Neutral Sentiment: Caterpillar announced a $5 million investment in Texas workforce training and manufacturing education, a positive long-term initiative but not likely a major near-term stock driver. Article Link
• Neutral Sentiment: Wall Street analyst coverage remains broadly optimistic, with multiple articles noting favorable average brokerage recommendations, though these do not always translate into reliable signals. Article Link
• Negative Sentiment: Michael Burry disclosed a first-ever short position in Caterpillar, arguing the stock’s AI-linked rally may have stretched valuation too far; that news is likely the main source of pressure on shares today. Article Link

Analyst Ratings Changes

Several research firms have recently weighed in on CAT. Argus boosted their target price on shares of Caterpillar from $820.00 to $990.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. Wolfe Research boosted their price objective on Caterpillar from $670.00 to $750.00 and gave the company an “outperform” rating in a report on Tuesday, March 31st. Oppenheimer set a $980.00 target price on Caterpillar and gave the stock an “outperform” rating in a report on Friday, May 1st. Daiwa Securities Group upped their price target on Caterpillar from $790.00 to $900.00 and gave the company a “neutral” rating in a research report on Friday, May 1st. Finally, Wall Street Zen raised shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat.com, Caterpillar presently has an average rating of “Moderate Buy” and an average price target of $949.41.

Caterpillar Trading Up 0.2%

The firm has a market cap of $444.67 billion, a P/E ratio of 48.06, a P/E/G ratio of 1.90 and a beta of 1.57. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The firm has a fifty day moving average of $918.32 and a 200-day moving average of $769.03.

Caterpillar (NYSE:CAT) last issued its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, topping the consensus estimate of $4.65 by $0.89. The firm had revenue of $17.41 billion for the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm’s revenue for the quarter was up 22.2% on a year-over-year basis. During the same period last year, the company earned $4.25 earnings per share. Equities research analysts forecast that Caterpillar Inc. will post 24.71 earnings per share for the current year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a $1.63 dividend. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. This represents a $6.52 annualized dividend and a yield of 0.7%. Caterpillar’s payout ratio is currently 30.06%.

Insider Activity at Caterpillar

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the business’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the sale, the chief financial officer directly owned 52,935 shares in the company, valued at approximately $48,631,913.85. The trade was a 22.85% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Anthony D. Fassino sold 16,283 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the transaction, the insider owned 46,041 shares in the company, valued at $42,210,388.80. This represents a 26.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 95,773 shares of company stock valued at $87,642,635. Company insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Several institutional investors have recently modified their holdings of the company. Lam Group Inc. acquired a new stake in Caterpillar during the 1st quarter valued at $26,000. Torren Management LLC acquired a new position in Caterpillar during the fourth quarter valued at $27,000. Frazier Financial Advisors LLC lifted its stake in Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 33 shares in the last quarter. Cedar Mountain Advisors LLC boosted its position in Caterpillar by 82.1% during the 1st quarter. Cedar Mountain Advisors LLC now owns 51 shares of the industrial products company’s stock worth $36,000 after acquiring an additional 23 shares during the period. Finally, IFS Advisors LLC acquired a new position in shares of Caterpillar in the 4th quarter valued at about $31,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

About Caterpillar

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.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.