Caterpillar Inc. $CAT Stock: Retirement Systems of Alabama Trims Holdings

Key Points

• Retirement Systems of Alabama cut its Caterpillar stake by 2.5%, selling 5,688 shares in the third quarter; it retained 225,191 shares valued at about $182.6 million.
• Analysts lowered price targets, including RBC’s reduction to $722 and Wells Fargo’s to $840, while the consensus remained “Moderate Buy” with a $898.25 target.
• Caterpillar’s latest quarterly EPS of $7.20 beat estimates, while revenue of $20.68 billion came in slightly below expectations; revenue rose 17.3% year over year.

Retirement Systems of Alabama decreased its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 2.5% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 225,191 shares of the industrial products company's stock after selling 5,688 shares during the quarter. Retirement Systems of Alabama's holdings in Caterpillar were worth $182,583,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of CAT. Diversify Advisory Services LLC acquired a new position in shares of Caterpillar during the 2nd quarter worth $5,372,000. D.B. Root & Company LLC purchased a new stake in shares of Caterpillar in the 2nd quarter worth about $850,000. Dearborn Partners LLC acquired a new stake in Caterpillar in the 2nd quarter valued at about $20,293,000. B. Metzler seel. Sohn & Co. AG grew its stake in 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 valued at $66,802,000 after acquiring an additional 2,590 shares during the last quarter. Finally, Van Hulzen Asset Management LLC increased its holdings 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 acquiring an additional 1,293 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Analyst Ratings Changes

CAT has been the subject of a number of research reports. Royal Bank Of Canada cut their target price on shares of Caterpillar from $897.00 to $722.00 and set a "sector perform" rating for the company in a research report on Friday, October 30th. Freedom Broker reduced their price target on shares of Caterpillar from $980.00 to $800.00 and set a "buy" rating on the stock in a report on Monday, November 2nd. Wells Fargo & Company lowered their price target on shares of Caterpillar from $1,155.00 to $840.00 and set an "overweight" rating on the stock in a research report on Monday, October 26th. Zacks Research downgraded Caterpillar from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Finally, Wall Street Zen downgraded Caterpillar from a "buy" rating to a "hold" rating in a research report on Saturday, October 31st. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $898.25.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Anthropic took over an order for 1.7 gigawatts of Caterpillar gas generators originally placed by OnePWR. The deal highlights demand for power equipment from AI companies and could support Caterpillar’s generator business. Article: Caterpillar Stocks Jump 6.61% as Anthropic Takes Over $3.4 Billion Generator Order
• Positive Sentiment: Caterpillar and Phoenix Service Partners reported an ultra-low-methane emissions technology for large gas-compression systems. It may help customers meet environmental and permitting requirements, though the article does not quantify potential sales. Article: Why Is Caterpillar Pushing Ultra Low Methane Gas Compression?
• Neutral Sentiment: CAT’s rebound accompanied a strong Dow rally, suggesting broad-market strength contributed to the move. Technical analysis said the shares cleared several daily resistance levels but that the broader trend remained weak. Article: Dow's nearly 700-point rally highlighted by gains for Amazon.com Inc., Caterpillar shares Article: Caterpillar stock support and resistance levels after 5.8% rebound
• Negative Sentiment: A recent report noted CAT had fallen about 10% in the prior week despite record quarterly sales and a $78 billion backlog, pointing to lingering concerns about the stock’s momentum. Article: Caterpillar Stock Sinks 10% in a Week Despite Record Backlog
• Negative Sentiment: Coverage of Michael Burry cashing in on Caterpillar put options after a reported fourfold gain highlights that bearish investors had profited from the stock’s recent weakness; it does not establish his current position. Article: Michael Burry Cashes In On Caterpillar Puts After 4X Gain

Caterpillar Stock Up 7.1%

Shares of NYSE:CAT opened at $598.35 on Tuesday. Caterpillar Inc. has a 12-month low of $537.08 and a 12-month high of $1,073.46. The stock's 50-day moving average price is $756.16 and its two-hundred day moving average price is $806.00. The firm has a market cap of $275.04 billion, a price-to-earnings ratio of 23.47, a PEG ratio of 1.02 and a beta of 1.65. The company has a current ratio of 1.42, a quick ratio of 0.88 and a debt-to-equity ratio of 1.50.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, topping the consensus estimate of $7.06 by $0.14. Caterpillar had a net margin of 15.21% and a return on equity of 59.87%. The firm had revenue of $20.68 billion during the quarter, compared to analyst estimates of $20.76 billion. During the same quarter in the prior year, the business posted $4.95 earnings per share. Caterpillar's revenue for the quarter was up 17.3% compared to the same quarter last year. On average, research analysts forecast that Caterpillar Inc. will post 27.39 EPS for the current year.

Caterpillar Dividend Announcement

The business also recently announced 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 is Monday, October 26th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 1.1%. Caterpillar's dividend payout ratio (DPR) is 25.58%.

Insiders Place Their Bets

In other news, Director C Jr purchased 1,000 shares of the stock in a transaction that occurred on Monday, November 2nd. The stock was acquired at an average cost of $620.39 per share, with a total value of $620,390.00. Following the acquisition, the director owned 4,714 shares in the company, valued at approximately $2,924,518.46. This trade represents a 26.93% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Joseph E. Creed sold 32,401 shares of the firm'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 value of $26,211,760.98. Following the sale, the chief executive officer owned 34,555 shares of the company's stock, valued at approximately $27,954,303.90. This trade represents a 48.39% decrease in their position. The SEC filing for this sale provides additional information. 0.33% of the stock is currently owned by company insiders.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, engines, turbines, and related products and services. Its offerings include earthmoving and material-handling machines, diesel and natural gas engines, power-generation systems, and equipment and technologies used in mining and transportation. The company's products are commonly sold under the Cat brand.

Caterpillar serves customers in markets around the world through a network of independent dealers. Its businesses also provide parts, maintenance, equipment rental, and other support services, as well as financing and insurance through its financial services operations.

The company was formed in 1925 through the merger of the Holt Manufacturing Company and the C.

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