Caterpillar (NYSE:CAT) Rating Lowered to Hold at Wall Street Zen

Caterpillar (NYSE:CAT) was downgraded by equities researchers at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Saturday.

A number of other research analysts also recently commented on CAT. HSBC upped their price objective on Caterpillar from $660.00 to $850.00 and gave the stock a “buy” rating in a research note on Thursday, February 5th. Bank of America upped their price target on shares of Caterpillar from $735.00 to $825.00 and gave the stock a “buy” rating in a research report on Tuesday, February 10th. Oppenheimer lifted their price objective on shares of Caterpillar from $700.00 to $729.00 and gave the company an “outperform” rating in a research report on Friday, January 30th. Citigroup upped their target price on shares of Caterpillar from $710.00 to $760.00 and gave the stock a “buy” rating in a research report on Monday, February 2nd. Finally, Jefferies Financial Group raised their price target on shares of Caterpillar from $700.00 to $750.00 and gave the company a “buy” rating in a research note on Tuesday, January 27th. Sixteen 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. Based on data from MarketBeat, Caterpillar presently has an average rating of “Moderate Buy” and an average price target of $702.95.

Caterpillar Trading Down 0.1%

NYSE CAT opened at $759.52 on Friday. The company has a debt-to-equity ratio of 1.44, a quick ratio of 0.94 and a current ratio of 1.44. Caterpillar has a one year low of $267.30 and a one year high of $789.81. The company has a 50-day simple moving average of $649.75 and a 200-day simple moving average of $553.58. The firm has a market capitalization of $353.40 billion, a PE ratio of 40.36, a price-to-earnings-growth ratio of 1.80 and a beta of 1.58.

Caterpillar (NYSE:CAT) last issued its earnings results on Thursday, January 29th. The industrial products company reported $5.16 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 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 company posted $5.14 earnings per share. On average, equities analysts forecast that Caterpillar will post 19.86 earnings per share for the current year.

Insiders Place Their Bets

In other news, insider Denise C. Johnson sold 39,138 shares of the firm’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $681.08, for a total transaction of $26,656,109.04. Following the completion of the transaction, the insider owned 43,350 shares in the company, valued at approximately $29,524,818. This trade represents a 47.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Rodney Michael Shurman sold 1,764 shares of Caterpillar stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $763.39, for a total transaction 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. This represents a 55.06% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 141,172 shares of company stock valued at $96,514,673. 0.33% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Kilter Group LLC acquired a new position in shares of Caterpillar in the 2nd quarter worth $27,000. Torren Management LLC purchased a new position in Caterpillar in the 4th quarter worth about $27,000. Marquette Asset Management LLC raised its holdings in Caterpillar by 1,060.0% during the 3rd quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company’s stock worth $28,000 after buying an additional 53 shares during the period. Frazier Financial Advisors LLC lifted its stake in Caterpillar by 220.0% during the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock valued at $28,000 after buying an additional 33 shares in the last quarter. Finally, IFS Advisors LLC acquired a new position in shares of Caterpillar in the fourth quarter worth about $31,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

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

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.