Caterpillar Inc. $CAT Stock Sold by Pinnacle Associates Ltd.

Key Points

• Pinnacle Associates reduced its Caterpillar position by 6.2% in the third quarter, selling 6,854 shares and retaining 103,212 shares valued at approximately $83.7 million. Institutional investors collectively own about 71% of CAT.
• Caterpillar reported strong quarterly results, with earnings per share of $8.17 and revenue of $20.54 billion, surpassing estimates and marking 23.7% year-over-year revenue growth.
• The company declared a quarterly dividend of $1.63 per share, or $6.52 annualized, representing a 0.9% yield. Analysts maintain a “Moderate Buy” consensus with an average price target of $967.83, despite CAT shares trading below recent moving averages.

Pinnacle Associates Ltd. reduced its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 6.2% in the third quarter, according to its most recent filing with the SEC. The fund owned 103,212 shares of the industrial products company's stock after selling 6,854 shares during the quarter. Caterpillar comprises approximately 0.9% of Pinnacle Associates Ltd.'s holdings, making the stock its 21st largest holding. Pinnacle Associates Ltd.'s holdings in Caterpillar were worth $83,683,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the business. BlackRock Inc. purchased a new stake in Caterpillar during the second quarter valued at $40,457,153,000. Bank of America Corp DE bought a new position in Caterpillar during the second quarter valued at $5,818,150,000. Diamant Asset Management Inc. grew its stake in shares of Caterpillar by 68,427.2% in the 1st quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after buying an additional 3,136,020 shares in the last quarter. Bank of New York Mellon Corp purchased a new position in shares of Caterpillar in the 2nd quarter worth $3,192,710,000. Finally, Legal & General Group Plc bought a new stake in shares of Caterpillar in the 2nd quarter worth about $2,783,451,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Stock Down 0.1%

Shares of CAT opened at $725.27 on Wednesday. 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 business has a fifty day moving average of $807.63 and a 200 day moving average of $856.77. The company has a market cap of $333.38 billion, a PE ratio of 31.21, a P/E/G ratio of 1.25 and a beta of 1.58. Caterpillar Inc. has a 52-week low of $510.21 and a 52-week high of $1,073.46.

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

Caterpillar Dividend Announcement

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

Insider Activity

In related news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar 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 completion of the transaction, the chief executive officer directly owned 34,555 shares of the company's stock, valued at approximately $27,954,303.90. The trade was a 48.39% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.33% of the company's stock.

Analysts Set New Price Targets

Several brokerages have recently issued reports on CAT. Wells Fargo & Company upped their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research report on Tuesday, June 23rd. Robert W. Baird set a $970.00 price target on shares of Caterpillar in a report on Wednesday, August 5th. Zacks Research lowered Caterpillar from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Erste Group Bank cut Caterpillar from a "buy" rating to a "hold" rating in a research note on Monday, July 27th. Finally, Freedom Broker upgraded Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 price objective on the stock in a research report on Thursday, September 10th. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $967.83.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar received a Zacks Rank upgrade to #2 (Buy), reflecting increased optimism about its earnings outlook. That could provide support to the shares, although the upgrade is based on a quantitative ranking rather than a major change in company fundamentals. Caterpillar rating upgrade article
• Positive Sentiment: Caterpillar is investing $10 million to expand its North Carolina workforce and manufacturing presence. The investment signals confidence in regional production demand and could support long-term growth, though it is unlikely to materially affect near-term earnings. Caterpillar North Carolina investment article
• Neutral Sentiment: Analyst coverage remains broadly favorable, with Wall Street’s average recommendation suggesting CAT is suitable for portfolios. However, the report cautions that sell-side recommendations can be overly optimistic, limiting the signal’s value for investors. Caterpillar analyst recommendation article
• Neutral Sentiment: A comparison with W.W. Grainger and other industrial-products companies provides context on CAT’s year-to-date performance, but does not introduce a new company-specific catalyst. Caterpillar peer performance article
• Negative Sentiment: Caterpillar formally objected to the unauthorized tokenized trading of its shares on the OKX-ICE venue, citing regulatory and reputational risks. The dispute may create headline risk and reinforces concerns about how CAT stock is represented in unregistered digital-asset markets. Caterpillar tokenized shares article

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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