NEW YORK, Feb 4, 2026, 13:14 (EST) — Regular session
- Caterpillar shares slipped roughly 2.3% in midday trading, after hitting $723 earlier
- SEC filings reveal that two senior executives cashed out shares following option exercises
- Investors will keep an eye on tariff expenses and a dividend payout scheduled for Feb. 19 in the near term
Caterpillar Inc shares dropped 2.3% to $686.87 on Wednesday, retreating from an earlier high near $723. The Dow industrial giant fluctuated between $685.09 and $723.00 during the session.
This move counts because CAT has surged into earnings season and is now twitchy to any sign of selling pressure. Wednesday’s drop hit while the stock hovered close to its recent highs.
This week brought two insider filings linked to option exercises—the right to buy shares at a fixed price. Group president Bob De Lange offloaded 15,977 shares on Feb. 2, averaging $682.99 each, according to the filing. The sale prices ranged from $682.93 to $683.49. That adds up to about $10.9 million. (SEC)
A separate filing revealed group president Anthony Fassino exercised options on 15,000 shares at $196.70, then sold 10,671 shares near $680 that same day. According to the form, 4,329 shares were withheld to cover taxes. (SEC)
Insider disclosures came as U.S. stocks showed mixed action: the Dow gained, while the S&P 500 and Nasdaq slipped amid concerns over AI’s rapid impact on traditional software models. “If you look underneath the hood, there’s certainly a rotation,” said Josh Chastant, portfolio manager at GuideStone Funds, highlighting money flowing into cheaper market segments. Investors are also awaiting a government timeline for releasing delayed payroll and job-openings data following the recent shutdown. (Reuters)
Monday’s data revealed that U.S. factory activity expanded in January for the first time in a year, with the ISM manufacturing Purchasing Managers Index climbing to 52.6. Readings above 50 signal growth. (Reuters)
Caterpillar reported fourth-quarter sales and revenues of $19.1 billion last week, marking an 18% increase from the same period a year ago. Adjusted earnings per share came in at $5.16. CEO Joe Creed highlighted the company’s strong momentum heading into the new year, citing a record backlog, which refers to its unfilled order book. (Caterpillar)
Tariffs are still the key wildcard. Caterpillar flagged about $2.6 billion in tariff-related expenses coming in 2026. Jefferies analyst Stephen Volkmann noted that tariff pressures “hindered” sales growth, capping margin gains this quarter. Creed reported a rise in orders for “prime power” generator systems — gear built to run nonstop — as data centers seek more on-site electricity. (Reuters)
However, the upside hinges on Caterpillar’s ability to convert that demand into solid margins. A slip in dealer orders or a fresh surge in manufacturing expenses could challenge a stock currently valued for consistent performance.
CAT shareholders should note the upcoming $1.51 quarterly dividend, set to be paid on Feb. 19. Beyond that, focus will return to the ongoing flow of economic data and whether tariff expenses remain within the limits management has outlined. (Caterpillar)
