Key Stats for Caterpillar Stock
- Price change for Caterpillar stock: -3%
- $CAT Share Price as of Apr. 15: $770
- 52-Week High: $799
- $CAT Stock Price Target: $754
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What Happened?
Caterpillar (CAT) stock is dropping after Bloomberg News reported the company quietly acquired Monarch Tractor, a California-based startup known for building self-driving electric tractors.
Neither company officially confirmed the deal. But Monarch posted on LinkedIn that its technology had been purchased by a large equipment manufacturer. Sources told Bloomberg that buyer was Caterpillar.
The startup had been struggling and cut jobs in recent months. Monarch recently said it would stop making complete vehicles, pivoting instead to licensing its technology for use in tractors and other heavy equipment.
Before the deal, Monarch had raised about $251 million from investors.
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What the Market Is Telling Us About Caterpillar Stock
Investors aren’t thrilled. Caterpillar stock is up about 29% this year, and the Monarch news isn’t helping sentiment.
The concern is pretty straightforward. Monarch operates in agriculture, which isn’t Caterpillar’s core business. Caterpillar is known for construction equipment, industrial machinery, and power generation.
Buying a struggling ag-tech startup raises questions about strategic fit and how much was paid for a company that couldn’t scale on its own.
That said, there’s a case for the deal. Caterpillar has been investing heavily in autonomy and electrification. The company ended 2025 with 827 autonomous haul trucks in operation, up from 690 the year before.
CEO Joe Creed has talked repeatedly about making Caterpillar an advanced technology leader. Monarch’s self-driving tech could fit that roadmap, even if agriculture is new territory.
The broader business also remains strong.
- Caterpillar posted record full-year revenue of $67.6 billion in 2025.
- Its backlog hit $51 billion, up 71% year-over-year.
- Power and Energy, the fastest-growing segment, saw sales jump over 30% last year.
But Caterpillar stock is dealing with real headwinds too.
- Tariff costs are expected to rise to $2.6 billion in 2026, up from $1.7 billion last year.
- That’s putting pressure on margins even as demand stays strong.
Most analysts still see long-term value here.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
