Caterpillar (NYSE:CAT) Shares Down 1.8% – Here’s What Happened

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

Caterpillar News Summary

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 Upgrades and Downgrades

Several research analysts recently weighed in on CAT shares. Evercore increased their target price on Caterpillar from $476.00 to $630.00 and gave the stock an “outperform” rating in a research report on Monday, November 17th. CICC Research started coverage on Caterpillar in a research note on Friday, February 6th. They set an “outperform” rating for the company. Daiwa Securities Group lifted their price objective on Caterpillar from $640.00 to $790.00 in a research note on Wednesday. HSBC lifted their price target on shares of Caterpillar from $660.00 to $850.00 and gave the company a “buy” rating in a research report on Thursday, February 5th. Finally, DA Davidson increased their price objective on shares of Caterpillar from $569.00 to $650.00 and gave the stock a “neutral” rating in a research report on Monday, February 2nd. Sixteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $712.52.

Caterpillar Price Performance

The business’s 50 day moving average price is $660.74 and its 200-day moving average price 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. The company has a market cap of $350.27 billion, a PE ratio of 40.00, a price-to-earnings-growth ratio of 1.82 and a beta of 1.58.

Caterpillar (NYSE:CAT) last released its quarterly earnings results 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 net margin of 13.14% and a return on equity of 45.76%. The business had revenue of $19.13 billion during the quarter, compared to analyst estimates of $17.81 billion. During the same period last year, the business earned $5.14 EPS. The business’s revenue was up 17.9% on a year-over-year basis. As a group, analysts forecast that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Caterpillar Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Investors of record on Tuesday, January 20th were issued a $1.51 dividend. 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 dividend payout ratio is currently 32.09%.

Insider Activity at Caterpillar

In related news, insider Denise C. Johnson sold 39,138 shares of Caterpillar 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 sale, the insider owned 43,350 shares in the company, valued at approximately $29,524,818. The trade was a 47.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CAO William E. Schaupp sold 972 shares of the company’s stock in a transaction on Tuesday, February 17th. The shares were sold at an average price of $764.20, for a total transaction of $742,802.40. Following the completion of the sale, the chief accounting officer directly owned 824 shares in the company, valued at $629,700.80. This represents a 54.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 143,450 shares of company stock worth $98,245,065 over the last ninety days. Company insiders own 0.33% of the company’s stock.

Institutional Investors Weigh In On Caterpillar

Institutional investors have recently modified their holdings of the stock. Norges Bank bought a new position in Caterpillar during the 2nd quarter worth approximately $2,165,899,000. Wellington Management Group LLP raised its holdings in shares of Caterpillar by 3,949.8% during the third quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company’s stock worth $2,494,568,000 after purchasing an additional 5,098,964 shares during the period. Capital International Investors bought a new position in shares of Caterpillar in the 4th quarter worth about $1,225,317,000. Massachusetts Financial Services Co. MA boosted its holdings in shares of Caterpillar by 1,851.8% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 1,830,414 shares of the industrial products company’s stock valued at $873,382,000 after buying an additional 1,736,631 shares during the period. Finally, Northwestern Mutual Wealth Management Co. grew its position in shares of Caterpillar by 573.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company’s stock valued at $861,947,000 after buying an additional 1,281,087 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

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.