Caterpillar shares fall amid analyst downgrades

Caterpillar Inc. shares dropped 3.9% in morning trading Wednesday to $599.59, extending losses that have cut the stock's value by roughly 44% from its 52-week high of $1,073.46.

The decline follows the company's third-quarter 2026 results released on October 29. Caterpillar reported adjusted earnings per share of $7.20, which exceeded analyst expectations, but revenue of $20.68 billion showed slower growth compared to the prior quarter's 24% pace.

Management provided guidance for moderate fourth-quarter sales growth and said full-year margins are expected near the bottom of their target range. The company said tariff-related costs are tracking around $2.2 billion for the year.

Several analysts lowered their price targets on the stock following the earnings report. Citi reduced its target to $800 from $950, while Morgan Stanley cut its target to $675 from $915. Baird lowered its price target to $729 from $970, and DA Davidson reduced its target to $685 from $882.

DA Davidson noted that Caterpillar shares trade at approximately a 50% premium to its peer group despite recent valuation compression.

A company director purchased 1,000 shares on Monday at approximately $620 per share.

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