Caterpillar (NYSE:CAT) Stock Price Down 3.1% – Here’s What Happened

Caterpillar Inc. (NYSE:CAT) fell 3.1% during mid-day trading on Wednesday . The company traded as low as $805.68 and last traded at $814.6850. Approximately 3,994,005 shares traded hands during trading, an increase of 37% from the average session volume of 2,919,715 shares. The stock had previously closed at $840.87.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Higher earnings forecasts support the stock. Zacks Research raised its FY2026 EPS estimate to $26.55 from $24.51 and lifted its Q2 2027 forecast to $7.90 from $7.17. The firm maintained a “Strong-Buy” rating, although it modestly reduced its Q4 2026 estimate to $6.47 from $6.61. Zacks Research Forecasts Stronger Earnings for Caterpillar
• Positive Sentiment: A $392 million tariff refund provides a near-term financial benefit. Caterpillar received the refund as tariff costs declined, though the company still incurred approximately $400 million in tariff expenses during the quarter ended June 30. Caterpillar bags $392M tariff refund as duty costs shrink
• Neutral Sentiment: Options markets imply unusually large potential moves. Recent analysis says Caterpillar stock is priced for swings of hundreds of dollars in either direction, highlighting substantial investor uncertainty rather than a clear directional catalyst. Caterpillar Stock Is Priced To Swing Hundreds Of Dollars Either Way
• Neutral Sentiment: Industry performance remains tied to end-market health. A comparison of heavy-machinery stocks places 2026 performance in the context of demand across construction, transportation and other industrial markets. Which Heavy Machinery Stock Has Dominated in 2026
• Negative Sentiment: AI data-center backlash creates a demand risk. Political and regulatory efforts in Texas and New York to restrict AI-related power use could delay or reduce data-center projects, potentially weakening demand for Caterpillar’s power-generation and related equipment. What Is Caterpillar Facing As AI Data Center Backlash Grows?
• Negative Sentiment: Recent trading pressure reflects broader uncertainty. Caterpillar was among the Dow’s weakest performers in the latest session, weighing on the index alongside Goldman Sachs. The Dow Loses Steam. Goldman and Caterpillar Strike Again

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Weiss Ratings upgraded Caterpillar from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday. Rothschild & Co Redburn raised their price target on shares of Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a research report on Thursday, May 14th. Jefferies Financial Group raised their price objective on shares of Caterpillar from $900.00 to $1,045.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Wall Street Zen upgraded Caterpillar from a “hold” rating to a “buy” rating in a research note on Saturday, May 2nd. Finally, Argus lifted their target price on Caterpillar from $820.00 to $990.00 and gave the stock a “buy” rating in a research report on Tuesday, May 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $995.52.

Caterpillar Trading Up 1.7%

The firm has a market capitalization of $381.02 billion, a P/E ratio of 35.67, a PEG ratio of 1.43 and a beta of 1.60. The business’s 50 day moving average is $910.49 and its two-hundred day moving average is $833.16. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business had revenue of $20.54 billion during the quarter, compared to analysts’ expectations of $19.34 billion. During the same period last year, the firm posted $4.72 earnings per share. The business’s revenue was up 23.7% on a year-over-year basis. Analysts expect that Caterpillar Inc. will post 27.14 EPS for the current year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Monday, July 20th were issued a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, July 20th. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s payout ratio is presently 28.06%.

Institutional Investors Weigh In On Caterpillar

A number of large investors have recently made changes to their positions in CAT. Safeguard Investment Advisory Group LLC boosted its stake in Caterpillar by 31.9% in the 2nd quarter. Safeguard Investment Advisory Group LLC now owns 653 shares of the industrial products company’s stock worth $696,000 after purchasing an additional 158 shares during the period. Orion Capital Management LLC grew its holdings in shares of Caterpillar by 4.3% during the second quarter. Orion Capital Management LLC now owns 735 shares of the industrial products company’s stock valued at $783,000 after buying an additional 30 shares in the last quarter. Round Rock Advisors LLC raised its position in Caterpillar by 3.0% during the second quarter. Round Rock Advisors LLC now owns 515 shares of the industrial products company’s stock valued at $548,000 after buying an additional 15 shares during the period. Nykredit A S purchased a new stake in Caterpillar in the 2nd quarter worth about $190,920,000. Finally, Sunburst Financial Group LLC grew its stake in Caterpillar by 19.8% during the 2nd quarter. Sunburst Financial Group LLC now owns 733 shares of the industrial products company’s stock valued at $781,000 after acquiring an additional 121 shares in the last quarter. 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.