Caterpillar (NYSE:CAT) Downgraded by Wall Street Zen to “Hold”

Wall Street Zen lowered shares of Caterpillar (NYSE:CAT) from a buy rating to a hold rating in a research report released on Saturday morning.

Several other analysts have also recently commented on the company. Wells Fargo & Company raised their target price on Caterpillar from $702.00 to $756.00 and gave the stock an “overweight” rating in a research report on Friday, January 30th. DA Davidson raised their price objective on Caterpillar from $569.00 to $650.00 and gave the stock a “neutral” rating in a research report on Monday, February 2nd. Bank of America upped their target price on Caterpillar from $735.00 to $825.00 and gave the company a “buy” rating in a report on Tuesday, February 10th. Royal Bank Of Canada raised their price target on shares of Caterpillar from $587.00 to $658.00 and gave the stock a “sector perform” rating in a report on Friday, January 30th. Finally, Jefferies Financial Group boosted their price objective on shares of Caterpillar from $700.00 to $750.00 and gave the company a “buy” rating in a research report on Tuesday, January 27th. Sixteen equities 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 MarketBeat, Caterpillar currently has a consensus rating of “Moderate Buy” and an average price target of $702.95.

Caterpillar Stock Performance

Shares of CAT opened at $759.52 on Friday. The company has a 50-day moving average of $649.75 and a two-hundred day moving average of $552.70. The stock has a market cap of $353.40 billion, a price-to-earnings ratio of 40.36, a PEG ratio of 1.80 and a beta of 1.58. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.44 and a quick ratio of 0.94. Caterpillar has a one year low of $267.30 and a one year high of $789.81.

Caterpillar (NYSE:CAT) last issued its quarterly earnings results on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, beating the consensus estimate 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 the consensus estimate of $17.81 billion. During the same quarter in the prior year, the firm earned $5.14 EPS. The firm’s quarterly revenue was up 17.9% on a year-over-year basis. On average, equities research analysts expect that Caterpillar will post 19.86 earnings per share for the current year.

Caterpillar Dividend Announcement

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

Insider Buying and Selling

In other news, CAO William E. Schaupp sold 972 shares of the company’s stock in a transaction dated Tuesday, February 17th. The stock was 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 owned 824 shares in the company, valued at approximately $629,700.80. This represents a 54.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Rodney Michael Shurman sold 1,764 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $763.39, for a total value of $1,346,619.96. Following the completion of the transaction, the insider directly owned 1,440 shares in the company, valued at $1,099,281.60. The trade was a 55.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 141,172 shares of company stock valued at $96,514,673. 0.33% of the stock is owned by company insiders.

Institutional Trading of Caterpillar

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

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q4 beat: Caterpillar reported sequential EPS growth and revenue above expectations, snapping five quarters of EPS declines — a near?term earnings positive that supports upside if margins stabilize. CAT Sees Q4 Earnings Growth Amid Cost Pressures
• Positive Sentiment: Bullish outlook: CNBC highlights momentum from 2025 and argues there’s more upside in 2026 based on order strength and secular exposures — a catalyst for positive analyst sentiment and fund flows. This industrial giant is off to the races in 2026 after a strong 2025
• Positive Sentiment: Mining tech M&A: Caterpillar completed the RPMGlobal acquisition to bolster software and data offerings — a strategic move to increase recurring, higher?margin services revenue over time. Caterpillar acquires RPMGlobal to bolster mining tech solutions
• Positive Sentiment: Battery/capacity push: Caterpillar?backed investments (ElevenEs Series B & reported mega battery plant plans) expand electrification exposure — long?term growth potential in mining and power systems. ElevenEs Held 1st Closing of Its Series B Investment Round
• Positive Sentiment: AI/data?center demand angle: Coverage points to Caterpillar exposure to data?center power and electrification — a structural demand story that could diversify revenue beyond equipment cycles. Can AI Infrastructure Spending Keep CAT Stock Climbing?
• Neutral Sentiment: Investor events: Management will appear at CONEXPO and recently presented at Barclays — useful for incremental guidance but not immediate catalysts until management commentary or updates. Caterpillar CEO Joe Creed to Participate in Fireside Chat at CONEXPO
• Neutral Sentiment: Benchmarking: Caterpillar is among the Dow leaders YTD — positive sentiment but not a direct fundamental driver. Caterpillar, Honeywell, and Chevron Lead the Dow Jones in 2026
• Negative Sentiment: Insider selling: Multiple disclosed sales (including CAO William Schaupp and other senior officers) have been reported this week — raising short?term selling pressure and investor concern about timing. Insider Selling: Caterpillar CAO Sells 972 Shares
• Negative Sentiment: Margin and estimate risks: Reports flag tariffs, rising input costs and margin compression heading into 2026; Zacks has trimmed near?term EPS estimates — a clear short?term earnings risk. CAT Sees Q4 Earnings Growth Amid Cost Pressures
• Negative Sentiment: Valuation concerns: Coverage on mining tech and battery moves calls attention to a rich CAT valuation vs. the added execution risk of new initiatives — could limit multiple expansion. Caterpillar’s Mining Tech And Battery Moves Confront Rich Valuation Concerns

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.