Caterpillar Inc. $CAT Stock: ProShare Advisors LLC Cuts Position

Key Points

• ProShare Advisors reduced its Caterpillar stake by 4.8% in the third quarter, selling 17,757 shares and retaining 351,451 shares worth approximately $285 million. Institutional investors collectively own nearly 71% of CAT.
• Caterpillar reported strong third-quarter results, with revenue up 17.3% year over year to $20.68 billion and adjusted EPS of $7.20, beating estimates. Power-generation demand and a record $78.1 billion backlog supported the quarter, though revenue slightly missed expectations and management maintained a moderate growth outlook.
• CAT shares have faced pressure and mixed analyst sentiment: the stock opened at $622.73, while several firms cut price targets amid valuation, tariff and timing concerns. The consensus view remains “Moderate Buy,” with an average target of $913.96.

ProShare Advisors LLC cut its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 4.8% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 351,451 shares of the industrial products company's stock after selling 17,757 shares during the period. ProShare Advisors LLC owned approximately 0.08% of Caterpillar worth $284,953,000 at the end of the most recent reporting period.

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

Insider Transactions at Caterpillar

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the firm's stock in a transaction dated 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 of the company's stock, valued at $27,954,303.90. This trade 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 the SEC website. Company insiders own 0.33% of the company's stock.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar reported third-quarter sales and revenues of approximately $20.7 billion, up 17% year over year, while adjusted earnings per share of $7.20 exceeded the $7.06 consensus estimate. Power-generation sales increased 30%, helped by data-center demand, and the company reported a record $78.1 billion backlog. Caterpillar Reports Third-Quarter 2026 Results
• Positive Sentiment: Truist Financial reaffirmed its “buy” rating, while Citigroup maintained a “buy” rating despite lowering its price target to $800. Both targets remain above the current trading level, suggesting some analysts see substantial long-term upside.
• Neutral Sentiment: Bank of America said Caterpillar’s earnings power remains intact, and analysts expect revenue and EPS growth as the backlog converts. However, the backlog may extend into 2029–2030, meaning investors could wait longer for the full financial benefit.
• Negative Sentiment: Management left its annual growth outlook unchanged and indicated only “moderate” fourth-quarter revenue growth. Investors had expected a stronger forecast or an upgrade, so the unchanged guidance overshadowed the earnings beat. Caterpillar Tops Quarterly Profit View
• Negative Sentiment: Revenue came in slightly below consensus, while tariff expenses and rising inventories added to concerns about costs, demand timing and near-term margins.
• Negative Sentiment: Several firms reduced their targets: Morgan Stanley cut its target to $675 and rated CAT “equal weight,” RBC lowered its target to $722 with a “sector perform” rating, and Truist reduced its target to $1,027. These cuts reinforce concerns that the stock’s premium valuation had become difficult to justify without faster growth.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Barclays upped their target price on Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 6th. UBS Group dropped their price objective on Caterpillar from $925.00 to $750.00 and set a "neutral" rating for the company in a research note on Monday, October 26th. President Capital initiated coverage on Caterpillar in a research note on Friday, September 18th. They set a "buy" rating and a $999.00 target price on the stock. Weiss Ratings lowered shares of Caterpillar from a "buy (b)" rating to a "buy (b-)" rating in a report on Thursday. Finally, Royal Bank Of Canada dropped their price target on shares of Caterpillar from $897.00 to $722.00 and set a "sector perform" rating on the stock in a research report on Friday. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Caterpillar currently has a consensus rating of "Moderate Buy" and a consensus target price of $913.96.

Caterpillar Stock Down 3.8%

CAT opened at $622.73 on Friday. The company has a market capitalization of $286.25 billion, a PE ratio of 24.43, a P/E/G ratio of 1.07 and a beta of 1.58. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.85 and a current ratio of 1.42. Caterpillar Inc. has a one year low of $537.08 and a one year high of $1,073.46. The stock's fifty day moving average is $783.25 and its 200-day moving average is $807.52.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Thursday, October 29th. The industrial products company reported $7.20 earnings per share for the quarter, topping analysts' consensus estimates of $7.06 by $0.14. Caterpillar had a net margin of 15.21% and a return on equity of 59.87%. The business had revenue of $20.68 billion for the quarter, compared to the consensus estimate of $20.76 billion. During the same period in the previous year, the company earned $4.95 earnings per share. The firm's revenue for the quarter was up 17.3% on a year-over-year basis. On average, equities analysts predict that Caterpillar Inc. will post 27.75 EPS for the current fiscal year.

Caterpillar Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, November 19th. Shareholders 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 yield of 1.0%. The ex-dividend date is Monday, October 26th. Caterpillar's dividend payout ratio (DPR) is presently 25.58%.

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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