Caterpillar (NYSE:CAT) Shares Down 1.8% – What’s Next?

Shares of Caterpillar Inc. (NYSE:CAT) were down 1.8% during trading on Thursday . The company traded as low as $728.40 and last traded at $752.81. Approximately 3,302,025 shares were traded during mid-day trading, an increase of 12% from the average daily volume of 2,950,480 shares. The stock had previously closed at $766.61.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts lifted targets and ratings — Wells Fargo raised its target to $870 and upgraded to overweight, and Daiwa raised its target to $790; those calls support upside expectations and likely helped earlier buying interest. Wells Fargo price target hike Daiwa price target hike
• Positive Sentiment: Recent quarterly results beat estimates (strong revenue and EPS) and the company continues to pay a modest dividend — fundamentals support the bullish analyst revisions. CAT earnings and company summary
• Positive Sentiment: Media and market commentators are upbeat — Jim Cramer repeatedly highlighted CAT as attractive, and strategists link Caterpillar to the “HALO”/AI‑related capex trade (data centers require heavy construction and equipment). Jim Cramer Discusses Caterpillar Jim Cramer on Caterpillar
• Positive Sentiment: Strategic investments and M&A — Caterpillar acquired RPMGlobal (mining software) and its venture arm backed ElevenEs, signaling tech/aftermarket expansion that can boost services and recurring revenue. Caterpillar acquired RPMGlobal ElevenEs Series B closing backed by Caterpillar VC
• Neutral Sentiment: Industry reports project strong long‑term growth in mining trucks, rock‑drilling and tunneling equipment (autonomy, electrification) — positive for TAM but not an immediate catalyst. Mining Truck Industry Report 2026
• Neutral Sentiment: Valuation scrutiny — coverage notes the stock now trades at a premium (PE ~39–40) after large gains; that raises downside sensitivity if orders or margins slow. Assessing CAT valuation
• Negative Sentiment: Short interest jumped ~61% in February — more short exposure can amplify downward moves and creates potential volatility. (SEC/market filings cited)
• Negative Sentiment: Insider selling: Rodney Shurman sold ~2,278 shares recently (disclosed SEC filing), which can be interpreted negatively by some investors. SEC filing for insider sale

Analyst Ratings Changes

Several analysts recently issued reports on the company. Jefferies Financial Group raised their price target on Caterpillar from $700.00 to $750.00 and gave the stock a “buy” rating in a report on Tuesday, January 27th. Argus raised their target price on Caterpillar from $625.00 to $820.00 and gave the company a “buy” rating in a research note on Wednesday, February 11th. HSBC boosted their price target on shares of Caterpillar from $660.00 to $850.00 and gave the company a “buy” rating in a report on Thursday, February 5th. Rothschild & Co Redburn increased their price objective on shares of Caterpillar from $650.00 to $700.00 and gave the stock a “neutral” rating in a report on Wednesday, February 4th. Finally, UBS Group reissued a “neutral” rating and set a $677.00 target price on shares of Caterpillar in a research note on Monday, February 2nd. Sixteen research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, Caterpillar presently has an average rating of “Moderate Buy” and a consensus price target of $712.52.

Caterpillar Stock Down 1.8%

The firm has a market cap of $350.27 billion, a price-to-earnings ratio of 40.00, a price-to-earnings-growth ratio of 1.82 and a beta of 1.58. The stock’s 50 day moving average is $660.74 and its 200 day moving average is $559.89. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44.

Caterpillar (NYSE:CAT) last issued its quarterly earnings results on Thursday, January 29th. The industrial products company reported $5.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.67 by $0.49. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The firm had revenue of $19.13 billion during the quarter, compared to analyst estimates of $17.81 billion. During the same period last year, the company posted $5.14 EPS. The firm’s quarterly revenue was up 17.9% on a year-over-year basis. Analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, February 19th. Investors of record on Tuesday, January 20th were issued a dividend of $1.51 per share. This represents a $6.04 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, January 20th. Caterpillar’s payout ratio is presently 32.09%.

Insiders Place Their Bets

In related news, insider Lange Bob De sold 22,656 shares of the stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $720.11, for a total transaction of $16,314,812.16. Following the completion of the sale, the insider directly owned 79,953 shares of the company’s stock, valued at $57,574,954.83. This represents a 22.08% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO William E. Schaupp sold 972 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $764.20, for a total transaction of $742,802.40. Following the sale, the chief accounting officer owned 824 shares of the company’s stock, valued at $629,700.80. The trade was a 54.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 143,450 shares of company stock worth $98,245,065. Company insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

Institutional investors have recently bought and sold shares of the stock. Kilter Group LLC purchased a new position in shares of Caterpillar in the second quarter worth approximately $27,000. Torren Management LLC acquired a new position in Caterpillar in the 4th quarter worth approximately $27,000. Marquette Asset Management LLC grew its position in Caterpillar by 1,060.0% during the 3rd quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock worth $28,000 after purchasing an additional 53 shares in the last quarter. Frazier Financial Advisors LLC lifted its holdings in shares of Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after purchasing an additional 33 shares in the last quarter. Finally, IFS Advisors LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth $31,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.