Caterpillar's Trading Volume Falls to 96th as Tariff Costs Surge to 1.5-1.8 Billion and Analysts Trim Price Targets Amid Margin Pressures

On September 2, Caterpillar (CAT) traded with a volume of $0.97 billion, marking a 37.29% decline from the previous day’s activity, ranking it 96th in trading volume among stocks. The shares closed down 0.71%, reflecting a subdued performance in a mixed market environment.

The company revised its estimated impact from U.S. tariffs upward to $1.5 billion to $1.8 billion for 2025, a significant increase from its earlier projection of $1.5 billion. This adjustment, disclosed in a regulatory filing, cited new and modified tariffs announced by the administration, which are expected to weigh on both its third-quarter results and full-year earnings. The third-quarter impact alone is projected to range between $500 million and $600 million, according to Caterpillar’s latest guidance.

Analysts responded to the revised outlook by adjusting their price targets. Baird’s Mircea Dobre cut his target to $495 from $500, while Oppenheimer’s Noah Kaye reduced his to $480 from $493, though both maintained “outperform” ratings. The downward revisions underscored investor concerns about margin pressures despite the long-term growth potential of Caterpillar’s industrial operations.

Recent performance highlights a broader sensitivity to macroeconomic risks, with Caterpillar’s stock underperforming the S&P 500 in the wake of tariff-related uncertainties. The company plans to provide further updates during its Q3 earnings release on October 29, which may offer clarity on mitigation strategies and operational resilience.

Notably, the Motley Fool’s latest recommendations excluded Caterpillar from its list of top 10 stocks, citing alternative opportunities with higher growth potential. Historical returns of previously highlighted stocks, such as Netflix and Nvidia, were cited as examples of potential outperformance, though Caterpillar’s inclusion in such lists remains unconfirmed.