Caterpillar (NYSE:CAT) Stock Price Down 1.4% – Should You Sell?

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

Key Headlines Impacting Caterpillar

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.

Analyst Ratings Changes

A number of analysts recently weighed in on the stock. DA Davidson upped their target price on shares of Caterpillar from $569.00 to $650.00 and gave the stock a “neutral” rating in a research note on Monday, February 2nd. Wells Fargo & Company lifted their price target on Caterpillar from $756.00 to $870.00 and gave the stock an “overweight” rating in a research report on Wednesday. Truist Financial increased their target price on shares of Caterpillar from $729.00 to $786.00 and gave the stock a “buy” rating in a research note on Monday, February 2nd. Barclays boosted their price objective on shares of Caterpillar from $610.00 to $625.00 and gave the company an “equal weight” rating in a research note on Friday, January 30th. Finally, Jefferies Financial Group boosted their target price on shares of Caterpillar from $700.00 to $750.00 and gave the stock a “buy” rating in a research report on Tuesday, January 27th. Sixteen investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $712.52.

Caterpillar Trading Down 1.4%

The business has a 50 day simple moving average of $664.48 and a 200-day simple moving average of $561.23. The stock has a market capitalization of $345.49 billion, a price-to-earnings ratio of 39.45, a price-to-earnings-growth ratio of 1.81 and a beta of 1.58. The company has a current ratio of 1.44, a quick ratio of 0.94 and a debt-to-equity ratio of 1.44.

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

Caterpillar Dividend Announcement

The company also recently declared 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 was Tuesday, January 20th. This represents a $6.04 annualized dividend and a yield of 0.8%. Caterpillar’s dividend payout ratio is currently 32.09%.

Insider Buying and Selling

In other news, CFO Andrew R. J. Bonfield sold 10,000 shares of Caterpillar stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $575.06, for a total value of $5,750,600.00. Following the transaction, the chief financial officer directly owned 45,460 shares of the company’s stock, valued at $26,142,227.60. The trade was a 18.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Rodney Michael Shurman sold 2,278 shares of the stock in a transaction that occurred 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 sale, the insider directly owned 1,443 shares of the company’s stock, valued at approximately $1,096,117.23. This trade represents a 61.22% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 143,450 shares of company stock worth $98,245,065. Corporate insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Caterpillar

Hedge funds have recently made changes to their positions in the business. Pacific Point Advisors LLC acquired a new position in shares of Caterpillar during the fourth quarter worth about $579,000. Brighton Jones LLC raised its holdings in shares of Caterpillar by 51.5% during the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock valued at $2,688,000 after buying an additional 2,519 shares during the period. United Bank lifted its position in Caterpillar by 108.5% during the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company’s stock worth $1,585,000 after acquiring an additional 2,125 shares in the last quarter. Schnieders Capital Management LLC. boosted its holdings in Caterpillar by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company’s stock worth $3,551,000 after acquiring an additional 347 shares during the period. Finally, Whalen Wealth Management Inc. acquired a new stake in Caterpillar in the second quarter valued at approximately $294,000. 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.