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

Caterpillar Inc. (NYSE:CAT)’s share price 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 changed hands during mid-day trading, an increase of 37% from the average session volume of 2,919,715 shares. The stock had previously closed at $840.87.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research raised multiple long-term earnings estimates, including FY2027 EPS to $30.14 from $29.01 and FY2028 EPS to $35.97 from $34.31. The firm also increased estimates for several quarterly periods and maintained a “Strong-Buy” rating, signaling confidence in Caterpillar’s future profitability. Zacks Research estimates
• Positive Sentiment: Caterpillar’s volume-driven growth across its three business segments has prompted an improved 2026 sales outlook, supporting the view that strong demand and the company’s backlog remain important growth drivers. Caterpillar volume gains article
• Positive Sentiment: Caterpillar announced up to $3 million for an Arkansas workforce initiative as part of its five-year, $100 million Building the Future Workforce Initiative. The program could strengthen recruiting and manufacturing talent pipelines over time. Caterpillar Arkansas workforce initiative

Wall Street Analyst Weigh In

CAT has been the topic of a number of recent analyst reports. Jefferies Financial Group upped their price target on Caterpillar from $900.00 to $1,045.00 and gave the stock a “buy” rating in a research report on Friday, May 1st. Wells Fargo & Company boosted their target price on Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a research note on Tuesday, June 23rd. Erste Group Bank lowered Caterpillar from a “buy” rating to a “hold” rating in a research report on Monday, July 27th. JPMorgan Chase & Co. raised their price target on Caterpillar from $1,125.00 to $1,165.00 and gave the stock an “overweight” rating in a report on Wednesday, June 17th. Finally, Barclays boosted their price target on Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eleven have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $995.52.

Caterpillar Price Performance

The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The stock’s 50 day moving average price is $913.03 and its two-hundred day moving average price is $830.99. The stock has a market cap of $374.49 billion, a price-to-earnings ratio of 35.06, a price-to-earnings-growth ratio of 1.53 and a beta of 1.60.

Caterpillar (NYSE:CAT) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm’s quarterly revenue was up 23.7% on a year-over-year basis. During the same period in the previous year, the firm posted $4.72 earnings per share. Equities research analysts forecast that Caterpillar Inc. will post 26.56 EPS for the current fiscal year.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be given a dividend of $1.63 per share. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a yield of 0.8%. The ex-dividend date is Monday, July 20th. Caterpillar’s dividend payout ratio (DPR) is 28.06%.

Institutional Investors Weigh In On Caterpillar

Hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its stake in shares of Caterpillar by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company’s stock valued at $26,572,681,000 after purchasing an additional 442,164 shares during the period. BlackRock Inc. purchased a new position in Caterpillar in the second quarter valued at $40,457,153,000. State Street Corp raised its position in shares of Caterpillar by 1.1% in the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company’s stock worth $20,273,039,000 after acquiring an additional 385,204 shares during the period. Geode Capital Management LLC boosted its stake in shares of Caterpillar by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company’s stock worth $6,072,572,000 after acquiring an additional 94,524 shares in the last quarter. Finally, Fisher Asset Management LLC grew its position in shares of Caterpillar by 0.6% during the 4th quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company’s stock valued at $5,438,408,000 after acquiring an additional 54,069 shares during the period. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Caterpillar Company Profile

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.