Caterpillar Inc. $CAT Stock: Prime Capital Investment Advisors LLC Reduces Position

Key Points

• Prime Capital Investment Advisors reduced its Caterpillar stake by 11% in the third quarter, selling 4,000 shares and retaining 32,374 shares valued at approximately $26.25 million. Institutional investors collectively own about 70.98% of CAT.
• Caterpillar reported strong quarterly results, with EPS of $8.17 versus the $6.22 consensus and revenue of $20.54 billion, up 23.7% year over year. The company also declared a quarterly dividend of $1.63 per share, representing a 0.9% annualized yield.
• CAT shares recently traded at $724.76, below their 50-day and 200-day moving averages, while analysts maintain a “Moderate Buy” consensus with an average price target of $967.83. CEO Joseph Creed separately sold 32,401 shares at an average price of $808.98.

Prime Capital Investment Advisors LLC cut its stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 11.0% during the 3rd quarter, according to its most recent filing with the SEC. The institutional investor owned 32,374 shares of the industrial products company's stock after selling 4,000 shares during the period. Prime Capital Investment Advisors LLC's holdings in Caterpillar were worth $26,248,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also recently bought and sold shares of CAT. Diversify Advisory Services LLC purchased a new position in Caterpillar in the 2nd quarter valued at about $5,372,000. D.B. Root & Company LLC acquired a new stake in shares of Caterpillar during the second quarter valued at about $850,000. Dearborn Partners LLC purchased a new stake in shares of Caterpillar during the second quarter worth about $20,293,000. B. Metzler seel. Sohn & Co. AG boosted its holdings in Caterpillar by 4.3% in the second quarter. B. Metzler seel. Sohn & Co. AG now owns 62,731 shares of the industrial products company's stock valued at $66,802,000 after purchasing an additional 2,590 shares during the last quarter. Finally, Van Hulzen Asset Management LLC grew its stake in Caterpillar by 85.3% during the 2nd quarter. Van Hulzen Asset Management LLC now owns 2,809 shares of the industrial products company's stock valued at $2,991,000 after purchasing an additional 1,293 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Caterpillar Stock Performance

Shares of CAT traded down $1.03 during mid-day trading on Tuesday, hitting $724.76. The stock had a trading volume of 1,172,417 shares, compared to its average volume of 2,816,895. Caterpillar Inc. has a fifty-two week low of $510.21 and a fifty-two week high of $1,073.46. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The company has a market cap of $333.15 billion, a PE ratio of 31.21, a PEG ratio of 1.26 and a beta of 1.58. The company's fifty day simple moving average is $810.02 and its two-hundred day simple moving average is $856.81.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%. The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same period in the prior year, the company posted $4.72 EPS. The business's revenue was up 23.7% compared to the same quarter last year. On average, equities analysts expect that Caterpillar Inc. will post 27.49 earnings per share for the current year.

Caterpillar Announces Dividend

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

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Wall Street analysts generally view Caterpillar as a potentially attractive investment, providing supportive sentiment for CAT. However, the article notes that analyst recommendations should be considered alongside valuation and fundamentals rather than treated as a stand-alone buy signal. Wall Street Analysts Think Caterpillar Is a Good Investment
• Positive Sentiment: Caterpillar is investing $10 million to expand its workforce and manufacturing presence in North Carolina. The move could support production capacity, local operations, and longer-term demand fulfillment, although the near-term earnings benefit is likely limited. Caterpillar Expands North Carolina Manufacturing Workforce Investment
• Neutral Sentiment: A Zacks comparison examines how Caterpillar has performed year to date against W.W. Grainger and other industrial-products companies. The report provides useful relative-performance context but does not identify a new company-specific catalyst. Is Caterpillar Stock Outpacing Its Industrial Products Peers This Year?
• Neutral Sentiment: Articles listing mining stocks to follow or consider adding to a watchlist mention the broader mining-investment theme, but they do not provide a material new update on Caterpillar’s orders, earnings, or outlook. Mining Stocks to Follow Today Promising Mining Stocks to Add to Your Watchlist

Analysts Set New Price Targets

Several research firms have issued reports on CAT. Robert W. Baird set a $970.00 price objective on Caterpillar in a report on Wednesday, August 5th. Wall Street Zen raised shares of Caterpillar from a "hold" rating to a "buy" rating in a research report on Saturday, October 10th. President Capital initiated coverage on shares of Caterpillar in a research note on Friday, September 18th. They issued a "buy" rating and a $999.00 price target for the company. Citigroup dropped their price target on shares of Caterpillar from $1,100.00 to $950.00 and set a "buy" rating for the company in a research note on Monday, October 12th. Finally, UBS Group upped their price target on shares of Caterpillar from $900.00 to $925.00 and gave the company a "neutral" rating in a report on Wednesday, August 5th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $967.83.

Insider Buying and Selling at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction dated 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 sale, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.33% of the stock is currently owned by corporate insiders.

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.

Want to see what other hedge funds are holding CAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Caterpillar Inc. (NYSE:CAT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.