Caterpillar Stock Plunges Amid Analyst Downgrade Over Data Center Concerns

Caterpillar (CAT) has seen its stock price impacted by an analyst downgrade. Quiver Quantitative reports that Baird downgraded the company, citing concerns over data center projects and their potential impact on equipment demand.

The downgrade has led to a pullback in the stock's price after a strong rally earlier this year. Observers are noting the growing opposition to infrastructure builds, which could slow down equipment demand through 2027 and 2028.

Caterpillar insiders have made significant sales of their shares, with Group Presidents Bob Lange and Denise Johnson selling nearly $114 million worth of stock each in the past six months. Meanwhile, institutional investors have been adding to their positions, with 1,611 firms increasing their holdings of CAT stock.