Caterpillar (NYSE:CAT) Shares Down 2.4% – Should You Sell?

Caterpillar Inc. (NYSE:CAT) shares were down 2.4% on Thursday . The company traded as low as $696.43 and last traded at $701.9570. Approximately 2,370,932 shares traded hands during trading, a decline of 18% from the average daily volume of 2,889,666 shares. The stock had previously closed at $719.04.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Erste Group nudged up its profit forecasts — the bank raised FY2027 EPS to $27.95 (from $27.65) and slightly lifted FY2026 to $22.70, both well above the street consensus of ~$19.86. This supports a stronger earnings outlook for CAT. Erste Group raises EPS estimates
• Neutral Sentiment: Deal and growth coverage — coverage of Caterpillar supplying power‑generation equipment to Atlas Energy and its role in powering Nscale’s AI compute campus highlights revenue diversification and exposure to AI/energy demand, but analysts are mixed on near-term financial impact and timing. Analysts mixed on Atlas Energy agreement Caterpillar and Nscale AI campus
• Neutral Sentiment: Community & STEM initiatives may support brand and hiring but have limited direct near‑term financial impact (Alvernia collaboration; Goodwill Arkansas funding). Alvernia partnership Goodwill Arkansas funding
• Negative Sentiment: Heightened legal risk — Caterpillar has countersued Bobcat (Doosan Bobcat) over alleged patent infringement and has accused the rival of industrial espionage; litigation can lead to legal costs, injunction risk or distraction. Reuters: Caterpillar countersues Bobcat ENR: alleges industrial espionage
• Negative Sentiment: Divestment headline — Washington state sold off ~$62M of Caterpillar bonds amid activist pressure; public-sector divestment can dent sentiment and signal ESG-related investor risk. WA sells Caterpillar bonds
• Negative Sentiment: Market/sector selloff — Caterpillar was mentioned among stocks that weighed on the Dow amid a near‑350 point decline, so broad risk‑off flows likely pressured the share price alongside company‑specific headlines. Market drop including CAT

Wall Street Analysts Forecast Growth

A number of brokerages have commented on CAT. JPMorgan Chase & Co. boosted their price objective on shares of Caterpillar from $765.00 to $860.00 and gave the stock an “overweight” rating in a report on Wednesday, March 4th. Barclays lifted their target price on Caterpillar from $610.00 to $625.00 and gave the stock an “equal weight” rating in a research report on Friday, January 30th. Rothschild & Co Redburn boosted their price target on Caterpillar from $650.00 to $700.00 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. Bank of America increased 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. Finally, Robert W. Baird set a $805.00 price objective on Caterpillar in a report on Friday, January 30th. Sixteen 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 stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $730.50.

Caterpillar Stock Down 1.1%

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 firm has a market capitalization of $323.61 billion, a price-to-earnings ratio of 36.96, a P/E/G ratio of 1.66 and a beta of 1.54. The stock has a 50 day moving average of $708.66 and a 200 day moving average of $603.12.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Thursday, January 29th. The industrial products company reported $5.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.67 by $0.49. The firm had revenue of $19.13 billion for the quarter, compared to analysts’ expectations of $17.81 billion. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.Caterpillar’s revenue for the quarter was up 17.9% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $5.14 earnings per share. As a group, analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Insider Activity

In other Caterpillar news, CEO Joseph E. Creed sold 2,500 shares of Caterpillar stock in a transaction on Thursday, March 5th. The shares were sold at an average price of $718.93, for a total value of $1,797,325.00. Following the completion of the transaction, the chief executive officer owned 35,083 shares of the company’s stock, valued at $25,222,221.19. The trade was a 6.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, insider Anthony D. Fassino sold 10,671 shares of the business’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $680.45, for a total transaction of $7,261,081.95. Following the sale, the insider owned 41,151 shares of the company’s stock, valued at approximately $28,001,197.95. The trade was a 20.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 135,950 shares of company stock valued at $94,327,990 over the last three months. 0.33% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Caterpillar

Large investors have recently bought and sold shares of the business. Pacific Point Advisors LLC bought a new stake in shares of Caterpillar in the 4th quarter worth approximately $579,000. Brighton Jones LLC increased its position in Caterpillar by 51.5% in the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock worth $2,688,000 after buying an additional 2,519 shares during the period. United Bank lifted its stake in Caterpillar by 108.5% in the second quarter. United Bank now owns 4,083 shares of the industrial products company’s stock valued at $1,585,000 after buying an additional 2,125 shares during the last quarter. Schnieders Capital Management LLC. lifted its stake in Caterpillar by 3.9% in the second quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company’s stock valued at $3,551,000 after buying an additional 347 shares during the last quarter. Finally, Maia Wealth LLC acquired a new position in shares of Caterpillar during the second quarter valued at $233,000. 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.