Caterpillar (NYSE:CAT) Stock Price Down 1.7% on Analyst Downgrade

Caterpillar Inc. (NYSE:CAT)’s stock price dropped 1.7% during mid-day trading on Thursday after Oppenheimer lowered their price target on the stock from $1,118.00 to $1,009.00. Oppenheimer currently has an outperform rating on the stock. Caterpillar traded as low as $704.01 and last traded at $736.3280. 4,396,934 shares traded hands during trading, an increase of 56% from the average daily volume of 2,825,535 shares. The stock had previously closed at $748.98.

Several other equities research analysts have also recently commented on the company. Royal Bank Of Canada lifted their target price on Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a research note on Wednesday, August 5th. Sanford C. Bernstein reiterated a “market perform” rating and issued a $749.00 price target on shares of Caterpillar in a report on Wednesday. Erste Group Bank cut Caterpillar from a “buy” rating to a “hold” rating in a report on Monday, July 27th. Wells Fargo & Company lifted their price objective on Caterpillar from $1,050.00 to $1,155.00 and gave the stock an “overweight” rating in a research report on Tuesday, June 23rd. Finally, President Capital initiated coverage on Caterpillar in a report on Friday, September 18th. They set a “buy” rating and a $999.00 price objective for the company. Fifteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat, Caterpillar presently has a consensus rating of “Moderate Buy” and a consensus target price of $967.83.

Insider Transactions at Caterpillar

In other Caterpillar news, 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 value of $26,211,760.98. Following the transaction, the chief executive officer directly 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.33% of the company’s stock.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Oppenheimer lowered its price target to $1,009 from $1,118 but retained an “outperform” rating, implying substantial upside from recent levels. Oppenheimer Caterpillar price target update
• Positive Sentiment: Caterpillar agreed to acquire the Fabick Cat dealer network, a move that could expand its distribution footprint and strengthen customer access in key markets. Caterpillar acquires Fabick Cat dealer network
• Positive Sentiment: The company is investing up to $10 million in North Carolina workforce training as part of its five-year, $100 million Building the Future Workforce Initiative. The program is intended to support future manufacturing and technician staffing needs. Caterpillar North Carolina workforce investment
• Neutral Sentiment: Caterpillar will report third-quarter 2026 results before the market opens on October 29, giving investors a near-term catalyst for assessing demand, margins and guidance. Caterpillar third-quarter 2026 earnings announcement
• Neutral Sentiment: Resource Industries President Denise Johnson will retire in February 2027, with Derrick York taking over on November 1. The planned transition is intended to preserve continuity. Caterpillar Resource Industries leadership transition
• Negative Sentiment: Reports highlight that CAT has fallen substantially from its record high amid the AI-related selloff, inflation concerns and questions about whether data-center-driven demand can continue supporting its premium valuation. Caterpillar selloff and inflation concerns

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in Caterpillar in the second quarter valued at approximately $40,457,153,000. Bank of America Corp DE acquired a new stake in Caterpillar in the second quarter worth $5,818,150,000. Diamant Asset Management Inc. boosted its position in shares of Caterpillar by 68,427.2% during the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company’s stock worth $2,224,992,000 after purchasing an additional 3,136,020 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Caterpillar during the second quarter worth $3,192,710,000. Finally, Legal & General Group Plc acquired a new position in shares of Caterpillar in the 2nd quarter valued at $2,783,451,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Stock Down 1.7%

The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. The firm’s fifty day moving average price is $816.99 and its 200-day moving average price is $855.96. The company has a market cap of $338.47 billion, a price-to-earnings ratio of 31.68, a price-to-earnings-growth ratio of 1.33 and a beta of 1.58.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping the consensus estimate of $6.22 by $1.95. The business had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The firm’s revenue was up 23.7% compared to the same quarter last year. During the same quarter last year, the business posted $4.72 EPS. Sell-side analysts predict that Caterpillar Inc. will post 27.49 earnings per share for the current year.

Caterpillar Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders of record on Monday, October 26th will be paid a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date of this dividend is Monday, October 26th. Caterpillar’s payout ratio is presently 28.06%.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.

The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.