Caterpillar (NYSE:CAT) Trading Down 2.1% – Should You Sell?

Shares of Caterpillar Inc. (NYSE:CAT) dropped 2.1% during mid-day trading on Friday . The stock traded as low as $799.17 and last traded at $800.11. 1,779,148 shares were traded during trading, a decline of 38% from the average session volume of 2,888,037 shares. The stock had previously closed at $817.00.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s Construction Industries segment generated 35% revenue growth in the second quarter, supported by stronger demand, higher volumes and pricing. Digital technology and related services could provide additional long-term growth opportunities. CAT’s Construction Revenues Up 35% in Q2: Can It Maintain This Pace?
• Positive Sentiment: Recent earnings strength, favorable earnings-estimate revisions and price momentum have led Zacks and other analysts to identify CAT as a stock that could continue outperforming. Caterpillar’s latest quarter also exceeded consensus earnings and revenue expectations, with revenue up 23.7% year over year. Why Caterpillar Might Be Well Poised for a Surge
• Positive Sentiment: Caterpillar increased its quarterly dividend 8% to $1.63 per share and extended its dividend-growth streak to 32 consecutive years, strengthening its appeal to income and quality-focused investors. Caterpillar’s Dividend Case Is Stronger in 2026
• Neutral Sentiment: CEO Joe Creed is scheduled to participate in a Wells Fargo investor discussion on September 10, which could provide additional commentary on demand, dealer inventories and the outlook. Caterpillar CEO to Participate in Wells Fargo Investor Discussion
• Negative Sentiment: Some analysts question whether construction demand reflects a durable end-market recovery or an “artificial” boost from the dealer channel. That uncertainty raises concerns about demand normalization and the ability to sustain the current growth rate. Is Caterpillar Stock Relying on an Artificial Demand Story?
• Negative Sentiment: The dividend has grown, but CAT’s yield remains relatively modest at the current share valuation, reducing its appeal for income investors and leaving less room for disappointment if the industrial cycle slows. Caterpillar’s Dividend Case Is Stronger in 2026

Analyst Ratings Changes

A number of brokerages have weighed in on CAT. Royal Bank Of Canada increased their target price on shares of Caterpillar from $877.00 to $897.00 and gave the stock a “sector perform” rating in a report on Wednesday, August 5th. Truist Financial set a $980.00 price target on shares of Caterpillar in a research note on Wednesday, August 5th. Wall Street Zen raised Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Barclays raised their target price on Caterpillar from $800.00 to $900.00 and gave the company an “equal weight” rating in a research report on Thursday, August 6th. Finally, Zacks Research raised Caterpillar from a “hold” rating to a “strong-buy” rating in a report on Wednesday, August 12th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $995.52.

Caterpillar Stock Performance

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 company’s 50-day moving average price is $897.67 and its two-hundred day moving average price is $837.40. The company has a market cap of $367.79 billion, a P/E ratio of 34.43, a price-to-earnings-growth ratio of 1.44 and a beta of 1.60.

Caterpillar (NYSE:CAT) last announced its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating the consensus estimate of $6.22 by $1.95. The business had revenue of $20.54 billion during 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%.Caterpillar’s revenue was up 23.7% compared to the same quarter last year. During the same period in the prior year, the business posted $4.72 earnings per share. As a group, equities analysts forecast that Caterpillar Inc. will post 27.14 earnings per share for the current year.

Caterpillar Increases Dividend

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

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of CAT. California State Teachers Retirement System boosted its holdings in Caterpillar by 105,696.1% in the second quarter. California State Teachers Retirement System now owns 747,331,911 shares of the industrial products company’s stock worth $795,833,752,000 after purchasing an additional 746,625,522 shares in the last quarter. BlackRock Inc. acquired a new stake in shares of Caterpillar in the second quarter worth about $40,457,153,000. Bank of America Corp DE bought a new stake in shares of Caterpillar during the 2nd quarter worth about $5,818,150,000. Diamant Asset Management Inc. increased its holdings in shares of Caterpillar by 68,427.2% during the 1st quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company’s stock valued at $2,224,992,000 after acquiring an additional 3,136,020 shares during the last quarter. Finally, Bank of New York Mellon Corp bought a new position in shares of Caterpillar in the 2nd quarter valued at approximately $3,192,710,000. Institutional investors and hedge funds 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.