Yes, if the piston is only coming out so far then stopping, it's sticking. These are old bikes. The brake system, both MC and caliper, usually needs a dis-assembly and thorough cleaning. When I first got mine home, I pushed it across the shop floor and put the front brake on to stop. It stopped alright, and stayed that way, lol. The piston wouldn't retract and the brake stayed on. I tried a thorough bleeding and flushing with fresh fluid but no dice. The components needed to come apart and be cleaned. They were all gunked up inside. In particular, be sure to clean that o-ring seal groove out that Leo mentioned. It gets full of dried, crusty brake fluid over time. That forces the seal out too much and that binds the piston.
All I did was clean everything. I replaced no seals or parts. The brake has been working fine and leak-free for going on 8 years now. I did need a new line though. The original rubber line had gone soft, giving me a soft lever feel no matter how much bleeding I did. A new stainless line fixed that.