Caterpillar Inc. $CAT Stock Sold by Iowa State Bank

Key Points

• Iowa State Bank reduced its Caterpillar holdings by 22.2% in the third quarter, selling 1,990 shares and retaining 6,967 shares valued at approximately $5.65 million. Institutional investors and hedge funds collectively own 70.98% of CAT.
• Caterpillar reported strong quarterly results, with revenue rising 23.7% year over year to $20.54 billion and adjusted EPS of $8.17, well above the $6.22 analyst consensus.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $989.17 price target, although CAT’s elevated valuation—about 37 times earnings—has raised concerns about limited room for disappointment.

Iowa State Bank lessened its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 22.2% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 6,967 shares of the industrial products company's stock after selling 1,990 shares during the quarter. Iowa State Bank's holdings in Caterpillar were worth $5,649,000 at the end of the most recent quarter.

Other hedge funds have also made changes to their positions in the company. Lam Group Inc. purchased a new position in Caterpillar during the first quarter worth about $26,000. Decker Retirement Planning Inc. grew its holdings in Caterpillar by 440.0% in the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock valued at $29,000 after buying an additional 22 shares during the period. Cornerstone Financial Management LLC acquired a new position in shares of Caterpillar during the 4th quarter valued at about $32,000. Matrix Trust Co lifted its holdings in shares of Caterpillar by 93.8% during the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock worth $33,000 after acquiring an additional 15 shares during the period. Finally, Monetary Solutions Ltd purchased a new position in shares of Caterpillar during the 4th quarter worth about $35,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: AI-related data-center construction is emerging as an additional growth driver for Caterpillar’s power-equipment business. Analysts view CAT as a potential fourth-quarter rebound candidate after lagging other AI infrastructure stocks in the third quarter, with demand, guidance and estimate revisions supporting the thesis. Buy Q3 AI Data Center Laggards CAT, GLW, JBL for a Rebound in Q4 Zacks AI Data Center Laggards Article
• Positive Sentiment: Steady factory orders, ongoing infrastructure investment and resilient construction and mining activity are cited as reasons CAT could continue to benefit despite inflation, tariffs and higher energy costs. Stocks to Boost Your Portfolio on Factory Orders
• Positive Sentiment: The latest quarterly results reinforce the fundamental story: revenue reached a record roughly $20.5 billion, up 23.7% year over year, while adjusted earnings of $8.17 per share exceeded expectations of $6.22. Caterpillar is a Great Business
• Neutral Sentiment: Several market roundups list CAT among construction and mining stocks worth monitoring, but provide limited new company-specific information. Promising Construction Stocks Promising Mining Stocks
• Negative Sentiment: One analysis argues that data-center tailwinds are real but already reflected in CAT’s share price. With a reported P/E ratio near 37, the valuation leaves less room for execution disappointments or slower industrial growth. Caterpillar Data Center Tailwinds and Valuation

Analysts Set New Price Targets

Several brokerages recently commented on CAT. Weiss Ratings lowered shares of Caterpillar from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, September 29th. Oppenheimer reiterated an "outperform" rating and issued a $1,118.00 price target on shares of Caterpillar in a report on Tuesday, August 4th. UBS Group boosted their price objective on shares of Caterpillar from $900.00 to $925.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. DA Davidson upped their price objective on Caterpillar from $845.00 to $882.00 and gave the stock a "neutral" rating in a report on Thursday, August 6th. Finally, Wells Fargo & Company lifted their target price on Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a report on Tuesday, June 23rd. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and eleven have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $989.17.

Caterpillar Trading Up 2.2%

CAT stock traded up $18.48 during midday trading on Tuesday, reaching $866.62. 916,310 shares of the company's stock traded hands, compared to its average volume of 2,812,547. 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 fifty-two week low of $483.55 and a fifty-two week high of $1,073.46. The business has a 50-day moving average price of $821.77 and a two-hundred day moving average price of $851.07. The company has a market capitalization of $398.36 billion, a P/E ratio of 37.27, a PEG ratio of 1.47 and a beta of 1.58.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, beating analysts' consensus estimates of $6.22 by $1.95. The business had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business's revenue for the quarter was up 23.7% compared to the same quarter last year. During the same quarter last year, the firm posted $4.72 EPS. Equities research analysts forecast that Caterpillar Inc. will post 27.37 EPS for the current fiscal year.

Insider Buying and Selling

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the business'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 transaction, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.33% of the stock is owned by company insiders.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.

The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.

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