Caterpillar Inc. $CAT Stock: Fifth Third Wealth Advisors LLC Raises Position

Key Points

• Fifth Third Wealth Advisors increased its Caterpillar position by 5.7% in the third quarter, bringing its holdings to 27,787 shares valued at approximately $22.5 million. Institutional investors collectively own 70.98% of CAT’s stock.
• Analyst sentiment remains generally positive, with Caterpillar carrying a “Moderate Buy” consensus rating and an average price target of $967.83, although individual ratings and targets were mixed.
• Caterpillar reported a strong latest quarter, posting $8.17 in EPS and $20.54 billion in revenue, beating estimates and marking 23.7% year-over-year revenue growth. The company also declared a quarterly dividend of $1.63 per share, equivalent to a 0.9% annual yield.

Fifth Third Wealth Advisors LLC raised its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 5.7% during the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 27,787 shares of the industrial products company's stock after acquiring an additional 1,503 shares during the quarter. Caterpillar makes up 0.6% of Fifth Third Wealth Advisors LLC's holdings, making the stock its 28th largest holding. Fifth Third Wealth Advisors LLC's holdings in Caterpillar were worth $22,529,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. BlackRock Inc. bought a new stake in Caterpillar during the 2nd quarter valued at $40,457,153,000. State Street Corp boosted its position in 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 purchasing an additional 1,396,356 shares in the last quarter. Bank of America Corp DE purchased a new position in Caterpillar in the second quarter valued at about $5,818,150,000. Bank of New York Mellon Corp purchased a new position in Caterpillar in the second quarter valued at about $3,192,710,000. Finally, Legal & General Group Plc bought a new position in Caterpillar in the second quarter worth about $2,783,451,000. Hedge funds and other institutional investors own 70.98% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. Wall Street Zen upgraded Caterpillar from a "hold" rating to a "buy" rating in a research note on Saturday, October 10th. DA Davidson raised their price target on Caterpillar from $845.00 to $882.00 and gave the stock a "neutral" rating in a report on Thursday, August 6th. Truist Financial dropped their price target on Caterpillar from $1,225.00 to $1,100.00 and set a "buy" rating on the stock in a research note on Monday, October 5th. Erste Group Bank lowered Caterpillar from a "buy" rating to a "hold" rating in a research note on Monday, July 27th. Finally, Barclays upped their price objective on shares of Caterpillar from $800.00 to $900.00 and gave the company an "equal weight" rating in a report on Thursday, August 6th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $967.83.

Caterpillar Trading Down 2.5%

CAT opened at $686.52 on Friday. The business has a fifty day moving average price of $798.82 and a 200 day moving average price of $855.65. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. Caterpillar Inc. has a 12 month low of $521.02 and a 12 month high of $1,073.46. The stock has a market capitalization of $315.57 billion, a price-to-earnings ratio of 29.56, a PEG ratio of 1.20 and a beta of 1.58.

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

Caterpillar Dividend Announcement

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

Insider Buying and Selling at Caterpillar

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

Trending Headlines about 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 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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