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.

CAT has been the subject of a number of other research reports. CICC Research began coverage on Caterpillar in a report on Friday, February 6th. They issued an “outperform” rating for the company. JPMorgan Chase & Co. boosted their target price on Caterpillar from $740.00 to $765.00 and gave the stock an “overweight” rating in a research note on Friday, January 30th. Citigroup upped their price target on shares of Caterpillar from $710.00 to $760.00 and gave the company a “buy” rating in a research note on Monday, February 2nd. Weiss Ratings reiterated a “buy (b)” rating on shares of Caterpillar in a report on Monday, December 29th. Finally, Oppenheimer lifted their price objective on Caterpillar from $700.00 to $729.00 and gave the company an “outperform” rating in a research note 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.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $702.95.

Caterpillar Stock Performance

NYSE:CAT opened at $759.52 on Friday. The stock has a market capitalization of $353.40 billion, a P/E ratio of 40.36, a P/E/G ratio of 1.80 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 has a 12-month low of $267.30 and a 12-month high of $789.81. The stock has a 50-day moving average price of $649.75 and a 200 day moving average price of $551.87.

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 the consensus estimate of $4.67 by $0.49. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The business had revenue of $19.13 billion during the quarter, compared to analysts’ expectations of $17.81 billion. During the same quarter last year, the business posted $5.14 EPS. The firm’s revenue for the quarter was up 17.9% compared to the same quarter last year. Equities research analysts forecast that Caterpillar will post 19.86 EPS for the current fiscal year.

Insider Activity

In other news, insider Anthony D. Fassino sold 7,891 shares of the business’s stock in a transaction that occurred on Friday, February 13th. The shares were sold at an average price of $776.90, for a total transaction of $6,130,517.90. Following the completion of the sale, the insider owned 46,643 shares in the company, valued at approximately $36,236,946.70. The trade was a 14.47% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Denise C. Johnson sold 39,138 shares of the firm’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $681.08, for a total transaction of $26,656,109.04. Following 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 141,172 shares of company stock valued at $96,514,673 over the last 90 days. Insiders own 0.33% of the company’s stock.

Institutional Trading of Caterpillar

Several large investors have recently bought and sold shares of CAT. Torren Management LLC purchased a new position in shares of Caterpillar during the fourth quarter valued at approximately $27,000. Frazier Financial Advisors LLC boosted its holdings in Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 33 shares during the period. IFS Advisors LLC acquired a new stake in Caterpillar during the 4th quarter valued at $31,000. Cornerstone Financial Management LLC acquired a new stake in shares of Caterpillar during the fourth quarter valued at about $32,000. Finally, Rialto Wealth Management LLC increased its holdings in Caterpillar by 47.4% during the 4th quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock worth $32,000 after purchasing an additional 18 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar News Summary

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.