Caterpillar (NYSE:CAT) Shares Down 1.4% – Time to Sell?

Caterpillar Inc. (NYSE:CAT)’s share price was down 1.4% on Friday . The stock traded as low as $731.04 and last traded at $742.5270. Approximately 3,427,941 shares were traded during trading, an increase of 16% from the average daily volume of 2,959,743 shares. The stock had previously closed at $752.93.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Wells Fargo raised its price target to $870, citing continued momentum and demand drivers that support higher valuations for CAT. Wells Fargo Raises Caterpillar (NYSE:CAT) Price Target to $870.00
• Positive Sentiment: Daiwa Securities also lifted its price target to $790, adding to analyst bullishness and reinforcing upside expectations from peers. Daiwa Securities Group Raises Caterpillar (NYSE:CAT) Price Target to $790.00
• Positive Sentiment: Market commentary highlights CAT as a beneficiary of AI-related capex (data center construction) and sustained infrastructure/mining demand — a thematic tailwind supporting long-term revenue and equipment replacement cycles. Does Caterpillar’s AI Power Deal And Record Results Redefine The Bull Case For CAT?
• Positive Sentiment: High-profile investors/commentators (Jim Cramer) and strategists are publicly backing CAT as a “hard asset” play tied to construction and AI-related buildout, bolstering retail/institutional interest. Jim Cramer on Caterpillar: “We Like Their Stuff”
• Neutral Sentiment: Research reports forecast solid market expansion in mining trucks, rock drilling and tunneling equipment through 2030, identifying CAT as a key market leader — supportive for long-term demand but not an immediate catalyst. Mining Truck Industry Report 2026-2035
• Neutral Sentiment: Corporate activity: CAT hosted its Global Technician Finals and is rolling out a redesigned rental management experience; these operational initiatives improve service/aftermarket positioning but are incremental. Caterpillar hosts its Global Technician Finals in Peoria
• Neutral Sentiment: Caterpillar and BST invested in ElevenEs (electrification/technology), a strategic move toward EV/efficiency solutions that supports medium-term product mix shifts. Caterpillar and BST invest in ElevenEs
• Negative Sentiment: Today’s share weakness is partly tied to broader market pressure: the Dow fell with losses in Nvidia and Caterpillar cited among decliners, which knocked CAT lower. Dow’s 131-point fall led by losses in NVIDIA Corp., Caterpillar shares
• Negative Sentiment: Short interest rose sharply in February (≈61% month-over-month growth to ~10M shares), indicating increased bearish positioning that can amplify near-term downside volatility.

Analysts Set New Price Targets

CAT has been the topic of a number of recent research reports. DA Davidson upped their target price on Caterpillar from $569.00 to $650.00 and gave the company a “neutral” rating in a research report on Monday, February 2nd. Argus raised their target price on shares of Caterpillar from $625.00 to $820.00 and gave the stock a “buy” rating in a report on Wednesday, February 11th. Weiss Ratings reiterated a “buy (b)” rating on shares of Caterpillar in a research note on Monday, December 29th. Daiwa Securities Group raised their target price on Caterpillar from $640.00 to $790.00 in a report on Wednesday. Finally, Bank of America boosted their price target on Caterpillar from $735.00 to $825.00 and gave the company a “buy” rating in a report on Tuesday, February 10th. Sixteen research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $712.52.

Caterpillar Price Performance

The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44. The company has a market capitalization of $345.49 billion, a price-to-earnings ratio of 39.45, a PEG ratio of 1.81 and a beta of 1.58. The stock’s 50-day simple moving average is $664.48 and its two-hundred day simple moving average is $561.23.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Thursday, January 29th. The industrial products company reported $5.16 earnings per share 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 company had revenue of $19.13 billion for the quarter, compared to analyst estimates of $17.81 billion. During the same quarter last year, the firm posted $5.14 EPS. The firm’s revenue for the quarter was up 17.9% on a year-over-year basis. Equities research analysts predict that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Caterpillar Dividend Announcement

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

Insiders Place Their Bets

In other Caterpillar news, insider Rodney Michael Shurman sold 2,278 shares of the firm’s stock in a transaction on Monday, February 23rd. The stock was sold at an average price of $759.61, for a total transaction of $1,730,391.58. Following the completion of the sale, the insider owned 1,443 shares of the company’s stock, valued at $1,096,117.23. This trade represents a 61.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Denise C. Johnson sold 39,138 shares of the company’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $681.08, for a total value of $26,656,109.04. Following the completion of the transaction, the insider directly owned 43,350 shares in the company, valued at approximately $29,524,818. This trade represents a 47.45% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 143,450 shares of company stock worth $98,245,065. 0.33% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Caterpillar

Institutional investors have recently modified their holdings of the company. Advisory Resource Group increased its stake in Caterpillar by 0.8% during the fourth quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company’s stock worth $935,000 after purchasing an additional 13 shares during the period. Invst LLC grew its holdings in shares of Caterpillar by 1.9% in the fourth quarter. Invst LLC now owns 753 shares of the industrial products company’s stock valued at $431,000 after purchasing an additional 14 shares in the last quarter. Plancorp LLC increased its stake in Caterpillar by 0.5% during the 4th quarter. Plancorp LLC now owns 2,777 shares of the industrial products company’s stock worth $1,591,000 after buying an additional 15 shares during the period. BlueStem Wealth Partners LLC lifted its holdings in Caterpillar by 1.3% during the 4th quarter. BlueStem Wealth Partners LLC now owns 1,192 shares of the industrial products company’s stock worth $683,000 after buying an additional 15 shares in the last quarter. Finally, KDT Advisors LLC boosted its position in Caterpillar by 2.3% in the 4th quarter. KDT Advisors LLC now owns 657 shares of the industrial products company’s stock valued at $376,000 after buying an additional 15 shares during the period. 70.98% of the stock is owned by institutional investors and hedge funds.

Caterpillar Company Profile

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.