Caterpillar Inc. $CAT Stock: D.A. Davidson & CO. Increases Holdings

Key Points

• D.A. Davidson increased its Caterpillar stake by 4.3% in the third quarter, bringing its holdings to 81,061 shares valued at approximately $65.7 million. Institutional investors and hedge funds collectively own 70.98% of CAT.
• Caterpillar CEO Joseph E. Creed sold 32,401 shares worth about $26.2 million, reducing his direct position by 48.39%; insiders now own just 0.33% of the stock.
• CAT’s outlook remains mixed: analysts maintain a “Moderate Buy” consensus with a $947.42 average price target, while investors await earnings and guidance amid valuation and backlog concerns. The company also declared a quarterly dividend of $1.63 per share, yielding about 0.9% annually.

D.A. Davidson & CO. increased its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 4.3% in the third quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 81,061 shares of the industrial products company's stock after buying an additional 3,375 shares during the quarter. D.A. Davidson & CO.'s holdings in Caterpillar were worth $65,724,000 as of its most recent filing with the SEC.

A number of other institutional investors have also made changes to their positions in CAT. Decker Retirement Planning Inc. grew its holdings in Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 22 shares in the last quarter. PFS Partners LLC raised its position in shares of Caterpillar by 1,750.0% in the 3rd quarter. PFS Partners LLC now owns 37 shares of the industrial products company's stock valued at $30,000 after purchasing an additional 35 shares in the last quarter. Matrix Trust Co boosted its stake in Caterpillar by 93.8% during the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock valued at $33,000 after acquiring an additional 15 shares during the last quarter. Cedar Mountain Advisors LLC grew its stake in Caterpillar by 82.1% in the first quarter. Cedar Mountain Advisors LLC now owns 51 shares of the industrial products company's stock worth $36,000 after purchasing an additional 23 shares in the last quarter. Finally, Axiom Investment Management LLC acquired a new position in shares of Caterpillar in the 2nd quarter worth approximately $36,000. 70.98% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

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

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Wall Street expects Caterpillar to report strong third-quarter sales and earnings growth, with revenue projected to exceed second-quarter sales. A beat, resilient margins, or an improved outlook could help reverse the recent pullback. Caterpillar Q3 2026 earnings preview: Revenue expected to top Q2 sales
• Positive Sentiment: Investors are watching demand for Caterpillar’s power systems, including potential AI and data-center infrastructure demand. Strong orders or backlog commentary would reinforce the company’s long-term growth narrative. Caterpillar Earnings Are Yet Another Bet on AI
• Positive Sentiment: One valuation analysis suggests CAT could be roughly 20% undervalued after its recent decline, based on expected future cash generation, its heavy-equipment and power businesses, and its substantial order pipeline. Caterpillar Stock May Be 20% Undervalued Following Backlog Questions
• Neutral Sentiment: Analysts have recently adjusted their forecasts and price targets ahead of the earnings release, making the report and management’s guidance important catalysts for the stock. Caterpillar Gears Up For Q3 Print
• Neutral Sentiment: Articles comparing Caterpillar with Eaton and Deere highlight its dealer network, free-cash-flow generation, and dividend profile, but also show investors weighing CAT against faster-growing electrical-infrastructure opportunities. Caterpillar vs. Eaton
• Negative Sentiment: The recent selloff reflects concerns that Caterpillar’s valuation already discounts strong execution, while questions about backlog quality and future cash flows could limit upside if the earnings report disappoints. Caterpillar Dropped 10% in a Month
• Negative Sentiment: Caterpillar’s legal challenge involving the United Kingdom’s post-Brexit tariffs introduces a potential trade-cost and regulatory overhang, although the immediate financial impact is unclear. Caterpillar mounts landmark legal test of UK’s post-Brexit tariffs

Caterpillar Price Performance

CAT opened at $715.07 on Thursday. The stock has a fifty day moving average of $790.42 and a 200-day moving average of $807.41. The firm has a market capitalization of $328.70 billion, a P/E ratio of 30.77, a PEG ratio of 1.18 and a beta of 1.58. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. Caterpillar Inc. has a 12-month low of $537.08 and a 12-month high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. The firm had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The business's quarterly revenue was up 23.7% compared to the same quarter last year. During the same period last year, the company posted $4.72 EPS. Equities analysts forecast that Caterpillar Inc. will post 27.74 EPS for the current fiscal year.

Caterpillar Dividend Announcement

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

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. Royal Bank Of Canada boosted their price objective on shares of Caterpillar from $877.00 to $897.00 and gave the company a "sector perform" rating in a research report on Wednesday, August 5th. DA Davidson raised their price target on Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. Citigroup reduced their price objective on shares of Caterpillar from $1,100.00 to $950.00 and set a "buy" rating for the company in a report on Monday, October 12th. Weiss Ratings upgraded shares of Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, October 14th. Finally, Wells Fargo & Company lowered their target price on Caterpillar from $1,155.00 to $840.00 and set an "overweight" rating on the stock in a report on Monday. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat, Caterpillar currently has a consensus rating of "Moderate Buy" and a consensus price target of $947.42.

About Caterpillar

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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