Capital Research Global Investors Sells 7,394 Shares of Caterpillar Inc. $CAT

Key Points

• Capital Research Global Investors trimmed its stake in Caterpillar by 0.2% in Q3, selling 7,394 shares and finishing the period with 4,295,367 shares (about a 0.92% stake) valued at roughly $2.05 billion.
• Insider selling has been notable — CEO Joseph E. Creed sold 2,500 shares for about $1.8 million and insiders have sold 135,950 shares (~$94.33 million) over the past 90 days, while insiders now own 0.33% of the company.
• Analyst sentiment remains broadly positive with a consensus "Moderate Buy" and a $726 target, amid multiple price-target increases (some up to $850) and 16 Buy vs. 7 Hold vs. 1 Sell ratings.

Capital Research Global Investors lessened its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 0.2% in the third quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 4,295,367 shares of the industrial products company's stock after selling 7,394 shares during the quarter. Capital Research Global Investors owned about 0.92% of Caterpillar worth $2,049,510,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently modified their holdings of the company. Fisher Asset Management LLC grew its holdings in shares of Caterpillar by 2.3% during the second quarter. Fisher Asset Management LLC now owns 9,418,321 shares of the industrial products company's stock worth $3,656,286,000 after purchasing an additional 208,196 shares during the last quarter. Norges Bank bought a new stake in Caterpillar in the 2nd quarter worth about $2,165,899,000. Bank of New York Mellon Corp boosted its holdings in shares of Caterpillar by 20.7% in the 3rd quarter. Bank of New York Mellon Corp now owns 3,553,930 shares of the industrial products company's stock worth $1,695,757,000 after buying an additional 609,023 shares during the last quarter. Charles Schwab Investment Management Inc. increased its holdings in Caterpillar by 1.0% in the 2nd quarter. Charles Schwab Investment Management Inc. now owns 3,337,915 shares of the industrial products company's stock worth $1,295,432,000 after acquiring an additional 33,467 shares during the last quarter. Finally, Invesco Ltd. raised its stake in shares of Caterpillar by 4.5% during the 2nd quarter. Invesco Ltd. now owns 3,282,720 shares of the industrial products company's stock valued at $1,274,385,000 after purchasing an additional 140,784 shares during the period. Institutional investors own 70.98% of the company's stock.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Citigroup raised its price target to $785 and kept a "buy" rating, lending credibility to further upside from current levels. Benzinga / MarketScreener - Citigroup adjusts price target
• Positive Sentiment: Two separate outlets reported higher analyst price targets ($817 and $825), signaling continued analyst optimism and potential upside in consensus estimates. Caterpillar NYSE: CAT Price Target Raised to $817.00
• Positive Sentiment: Another reported price-target lift to $825 reinforces the analyst momentum behind the stock. Caterpillar NYSE: CAT Price Target Raised to $825.00
• Positive Sentiment: Coverage notes Caterpillar as a long-term favorite trading near 52-week highs, reflecting ongoing demand and bullish technical trends that can attract momentum buyers. Zacks - 2 Long Term Favorite Stocks Trading Near 52-Week Highs
• Positive Sentiment: Caterpillar highlighted new heavy electric-drive dozer technology, supporting its transition into electrified equipment and potential new market openings. Product innovation can support premium valuation over time. Electrek - CAT puts century-old tech to work in its newest, heaviest electric drive dozer
• Positive Sentiment: CEO Ogi Redzic discussed AI, data and industrial innovation—an operational narrative that supports margin expansion and aftermarket/service growth if executed. Investors often reward tech-enabled efficiency gains. Forbes - Caterpillar’s Ogi Redzic On AI, Data And Industrial Innovation
• Neutral Sentiment: Analysis pieces are debating valuation after a short-term pullback: some view the drop as a buying opportunity given multi-year returns, others warn of overvaluation — this keeps sentiment mixed near current levels. Yahoo Finance - Assessing Caterpillar's Valuation After Recent Share Price Weakness
• Neutral Sentiment: Opinion pieces pose the classic "buy the dip or book profits" question; they increase volatility by prompting both profit-taking and dip-buying among different investor cohorts. Forbes - CAT Stock Pullback: Time To Buy The Dip Or Book Profits?
• Negative Sentiment: The CEO reported a personal sale of roughly $1.8M in Caterpillar stock; insider sales can be interpreted negatively by some investors even if they are routine or pre-scheduled. Caterpillar NYSE: CAT CEO Sells $1,797,325.00 in Stock

Wall Street Analyst Weigh In

Several research firms have commented on CAT. Barclays lifted their price target on shares of Caterpillar from $610.00 to $625.00 and gave the stock an "equal weight" rating in a research note on Friday, January 30th. Morgan Stanley raised their price target on Caterpillar from $400.00 to $425.00 and gave the company an "underweight" rating in a report on Tuesday, February 3rd. Rothschild & Co Redburn raised their target price on Caterpillar from $650.00 to $700.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. HSBC boosted their price objective on Caterpillar from $660.00 to $850.00 and gave the company a "buy" rating in a research report on Thursday, February 5th. Finally, Sanford C. Bernstein restated a "market perform" rating and set a $678.00 target price on shares of Caterpillar in a research report on Friday, January 30th. Sixteen equities research 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. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $726.00.

Insider Buying and Selling

In other Caterpillar news, CEO Joseph E. Creed sold 2,500 shares of the firm's stock in a transaction dated Thursday, March 5th. The stock was sold at an average price of $718.93, for a total value of $1,797,325.00. Following the sale, the chief executive officer directly owned 35,083 shares of the company's stock, valued at approximately $25,222,221.19. This trade represents a 6.65% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Lange Bob De sold 22,656 shares of Caterpillar stock in a transaction on Friday, February 6th. The shares were sold at an average price of $720.11, for a total transaction of $16,314,812.16. Following the transaction, the insider owned 79,953 shares in the company, valued at $57,574,954.83. The trade was a 22.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 135,950 shares of company stock valued at $94,327,990. 0.33% of the stock is owned by company insiders.

Caterpillar Stock Performance

Shares of NYSE CAT opened at $704.10 on Tuesday. The stock has a market cap of $327.61 billion, a price-to-earnings ratio of 37.41, a PEG ratio of 1.61 and a beta of 1.53. Caterpillar Inc. has a 12 month low of $267.30 and a 12 month high of $789.81. The company has a current ratio of 1.44, a quick ratio of 0.94 and a debt-to-equity ratio of 1.44. The company has a 50 day simple moving average of $683.98 and a two-hundred day simple moving average of $578.41.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Thursday, January 29th. The industrial products company reported $5.16 EPS for the quarter, topping analysts' consensus estimates of $4.67 by $0.49. The company had revenue of $19.13 billion for the quarter, compared to the consensus estimate of $17.81 billion. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. Caterpillar's quarterly revenue was up 17.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $5.14 earnings per share. As a group, analysts predict that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Caterpillar Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, February 19th. Shareholders of record on Tuesday, January 20th were given a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Tuesday, January 20th. Caterpillar's payout ratio is presently 32.09%.

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.

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