1,750 Caterpillar Inc. $CAT Shares Sold by James Investment Research Inc.

Key Points

• James Investment Research reduced its Caterpillar position by 8.4%, selling 1,750 shares and retaining 19,011 shares valued at approximately $15.4 million. Institutional investors collectively own nearly 71% of CAT.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $967.83, despite some recent rating downgrades and target-price cuts.
• Caterpillar reported strong quarterly results, earning $8.17 per share on $20.54 billion in revenue, while announcing a quarterly dividend of $1.63 per share. The stock opened at $686.52, well below its 52-week high of $1,073.46.

James Investment Research Inc. reduced its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 8.4% in the third quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 19,011 shares of the industrial products company's stock after selling 1,750 shares during the quarter. Caterpillar makes up about 1.7% of James Investment Research Inc.'s holdings, making the stock its 8th biggest holding. James Investment Research Inc.'s holdings in Caterpillar were worth $15,414,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in shares of Caterpillar in the second quarter valued at about $40,457,153,000. State Street Corp raised its stake in shares of Caterpillar by 4.0% during the second quarter. State Street Corp now owns 36,276,960 shares of the industrial products company's stock valued at $37,120,529,000 after acquiring an additional 1,396,356 shares during the last quarter. Bank of America Corp DE bought a new position in shares of Caterpillar during the second quarter valued at about $5,818,150,000. Diamant Asset Management Inc. boosted its holdings in shares of Caterpillar by 68,427.2% during the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after purchasing an additional 3,136,020 shares during the period. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Caterpillar during the second quarter worth about $3,192,710,000. Hedge funds and other institutional investors own 70.98% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently issued reports on CAT shares. Robert W. Baird set a $970.00 target price on Caterpillar in a research note on Wednesday, August 5th. Erste Group Bank lowered Caterpillar from a "buy" rating to a "hold" rating in a research report on Monday, July 27th. Truist Financial dropped their price objective on Caterpillar from $1,225.00 to $1,100.00 and set a "buy" rating for the company in a report on Monday, October 5th. DA Davidson lifted their price objective on Caterpillar from $845.00 to $882.00 and gave the stock a "neutral" rating in a research report on Thursday, August 6th. Finally, Freedom Broker raised Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 target price on the stock in a research note on Thursday, September 10th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $967.83.

Caterpillar Price Performance

Shares of NYSE CAT opened at $686.52 on Friday. Caterpillar Inc. has a 1 year low of $521.02 and a 1 year high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. The company's 50-day moving average is $798.82 and its 200 day moving average is $855.65. The stock has a market capitalization of $315.57 billion, a P/E ratio of 29.54, a P/E/G ratio of 1.20 and a beta of 1.58.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. Caterpillar's revenue was up 23.7% on a year-over-year basis. During the same period in the prior year, the firm earned $4.72 earnings per share. On average, sell-side analysts expect that Caterpillar Inc. will post 27.74 earnings per share for the current year.

Caterpillar Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be given a $1.63 dividend. The ex-dividend date of this dividend is Monday, October 26th. This represents a $6.52 annualized dividend and a dividend yield of 0.9%. Caterpillar's dividend payout ratio is currently 28.06%.

Insider Activity at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the sale, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.33% of the stock is currently owned by insiders.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts expect Caterpillar to deliver year-over-year earnings growth in its upcoming third-quarter report. The company’s positive Earnings ESP and favorable estimate revisions suggest potential for an earnings beat, supported by manufacturing strength and demand for industrial equipment. Caterpillar Reports Next Week: Wall Street Expects Earnings Growth
• Positive Sentiment: Technical and fundamental indicators are encouraging some investors to view the recent decline as a buying opportunity. A hammer chart pattern points to possible support, while upward earnings-estimate revisions could help drive a near-term recovery. Bears Are Losing Control Over Caterpillar
• Positive Sentiment: Zacks lists Caterpillar among industrial companies with the potential to outperform third-quarter earnings expectations, reflecting continued confidence in the sector’s demand environment. Industrial Stocks Set to Outshine Q3 Earnings Estimates
• Neutral Sentiment: The key catalyst is Caterpillar’s forthcoming quarterly report. Investors will focus on whether earnings growth, revenue momentum and management’s outlook validate the optimistic estimates. The company’s previous quarter featured a substantial earnings and revenue beat, providing a supportive comparison.
• Negative Sentiment: The recent selloff has materially weakened CAT’s momentum and caused it to underperform the S&P 500, with much of the decline concentrated in only a few trading sessions. Continued investor caution, profit-taking or disappointment in the upcoming report could keep pressure on the shares. Caterpillar Just Dropped 10% in a Month

Caterpillar Company Profile

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.

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