Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi team, you are doing an excellent job in helping us navigate the stock market. I would like your thoughts on CAT. CAT announced FY26 results on 20/5; the stock was up 17% on that date, closing at $3.39, and reached a high of $3.885 on the next day (21/5). CAT was down 6.16% today (25/5), closing at $3.35. Do you know the reason for today’s big fall?
Hi Peter,
Following results, analysts will re-cut their numbers and that can cause this sort of trading action to play out, particularly if an influential analyst comes to a different conclusion than the market has on first pass. In the case of CAT, the result were solid and the momentum in the business was strong, however, we haven’t seen any major uplift in target prices from analysts in the days after the result, implying much of the update was already priced in. You can see this in the white line below, which tracks consensus 12-month price targets.
The market collectively was already bullish CAT, and the results were supportive of that view, but not enough to prompt more bullish assumptions and therefore an uplift in the target price.
Worth also remembering, this is a volatile growth stock whose average daily move in 2026 is 3.5-4.0% hence a pullback of 6.2% after the 2-day surge truly isn’t out of ordinary.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
