Caterpillar (NYSE:CAT) Shares Down 2.5% – Time to Sell?

Posted by George Bondi on Oct 25th, 2026

Caterpillar Inc. (NYSE:CAT – Get Free Report)’s share price traded down 2.5% on Friday. The stock traded as low as $681.23 and last traded at $686.5230. Approximately 3,005,033 shares changed hands during trading, an increase of 7% from the average daily volume of 2,821,297 shares. The stock had previously closed at $704.05.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

Positive Sentiment: Analysts expect Caterpillar to deliver year-over-year earnings growth in its upcoming third-quarter report. The company’s positive Earnings ESP and favorable estimate revisions suggest potential for an earnings beat, supported by manufacturing strength and demand for industrial equipment. Caterpillar Reports Next Week: Wall Street Expects Earnings Growth
Positive Sentiment: Technical and fundamental indicators are encouraging some investors to view the recent decline as a buying opportunity. A hammer chart pattern points to possible support, while upward earnings-estimate revisions could help drive a near-term recovery. Bears Are Losing Control Over Caterpillar
Positive Sentiment: Zacks lists Caterpillar among industrial companies with the potential to outperform third-quarter earnings expectations, reflecting continued confidence in the sector’s demand environment. Industrial Stocks Set to Outshine Q3 Earnings Estimates
Neutral Sentiment: The key catalyst is Caterpillar’s forthcoming quarterly report. Investors will focus on whether earnings growth, revenue momentum and management’s outlook validate the optimistic estimates. The company’s previous quarter featured a substantial earnings and revenue beat, providing a supportive comparison.
Negative Sentiment: The recent selloff has materially weakened CAT’s momentum and caused it to underperform the S&P 500, with much of the decline concentrated in only a few trading sessions. Continued investor caution, profit-taking or disappointment in the upcoming report could keep pressure on the shares. Caterpillar Just Dropped 10% in a Month

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. Royal Bank Of Canada raised their target price on shares of Caterpillar from $877.00 to $897.00 and gave the company a “sector perform” rating in a research note on Wednesday, August 5th. Truist Financial lowered their price target on Caterpillar from $1,225.00 to $1,100.00 and set a “buy” rating on the stock in a research report on Monday, October 5th. Weiss Ratings upgraded Caterpillar from a “buy (b-)” rating to a “buy (b)” rating in a research note on Wednesday, October 14th. Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $749.00 price objective on shares of Caterpillar in a research report on Wednesday, October 14th. Finally, President Capital began coverage on Caterpillar in a research note on Friday, September 18th. They set a “buy” rating and a $999.00 target price for the company. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $967.83.

Read Our Latest Research Report on CAT

Caterpillar Stock Down 2.5%

The firm has a market cap of $315.58 billion, a P/E ratio of 29.54, a P/E/G ratio of 1.18 and a beta of 1.58. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The firm’s fifty day moving average is $798.82 and its 200 day moving average is $855.65.

Caterpillar (NYSE:CAT – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating the consensus estimate of $6.22 by $1.95. The firm had revenue of $20.54 billion for the quarter, compared to analysts’ expectations of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business’s revenue was up 23.7% on a year-over-year basis. During the same period in the prior year, the firm earned $4.72 EPS. As a group, equities research analysts anticipate that Caterpillar Inc. will post 27.74 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

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

Insider Activity at Caterpillar

In other news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the transaction, the chief executive officer owned 34,555 shares in the company, 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 document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.33% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CAT. Apollon Wealth Management LLC increased its holdings in Caterpillar by 24.2% in the third quarter. Apollon Wealth Management LLC now owns 31,214 shares of the industrial products company’s stock valued at $25,308,000 after purchasing an additional 6,089 shares during the period. Tower View Wealth Management LLC raised its position in Caterpillar by 707.0% during the 3rd quarter. Tower View Wealth Management LLC now owns 2,413 shares of the industrial products company’s stock worth $1,956,000 after purchasing an additional 2,114 shares during the last quarter. Hilton Head Capital Partners LLC acquired a new position in Caterpillar during the 3rd quarter worth about $1,129,000. Slow Capital Inc. lifted its holdings in Caterpillar by 0.6% during the 3rd quarter. Slow Capital Inc. now owns 9,260 shares of the industrial products company’s stock worth $7,508,000 after buying an additional 55 shares during the period. Finally, Kingswood Wealth Advisors LLC lifted its holdings in Caterpillar by 13.4% during the 3rd quarter. Kingswood Wealth Advisors LLC now owns 29,039 shares of the industrial products company’s stock worth $23,545,000 after buying an additional 3,426 shares during the period. 70.98% of the stock is owned by institutional investors and hedge funds.

About Caterpillar

(Get Free Report)

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.