Caterpillar Inc. $CAT Stock: Tower View Wealth Management LLC Raises Stake

Key Points

• Tower View Wealth Management increased its Caterpillar stake by 707% in the third quarter, owning 2,413 shares worth approximately $1.96 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported a strong quarter, with earnings of $8.17 per share versus the $6.22 consensus estimate and revenue of $20.54 billion, up 23.7% year over year.
• CAT shares opened at $686.52, well below their 52-week high of $1,073.46. Analysts maintain a “Moderate Buy” consensus with an average price target of $967.83, while the company declared a quarterly dividend of $1.63 per share.

Tower View Wealth Management LLC boosted its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 707.0% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,413 shares of the industrial products company's stock after buying an additional 2,114 shares during the period. Tower View Wealth Management LLC's holdings in Caterpillar were worth $1,956,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in CAT. Decker Retirement Planning Inc. grew its position in shares of Caterpillar by 440.0% during the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock worth $29,000 after acquiring an additional 22 shares during the last quarter. Matrix Trust Co lifted its position in Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock valued at $33,000 after purchasing an additional 15 shares during the last quarter. Axiom Investment Management LLC bought a new stake in Caterpillar in the 2nd quarter valued at about $36,000. Lam Group Inc. acquired a new position in Caterpillar during the 1st quarter valued at about $26,000. Finally, PFS Partners LLC boosted its stake in Caterpillar by 1,750.0% during the 3rd quarter. PFS Partners LLC now owns 37 shares of the industrial products company's stock valued at $30,000 after purchasing an additional 35 shares during the period. 70.98% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the company's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the sale, the chief executive officer directly 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 document filed with the SEC, which is available at this hyperlink. 0.33% of the stock is owned by company insiders.

Caterpillar Stock Performance

Shares of CAT opened at $686.52 on Monday. The firm has a market capitalization of $315.57 billion, a PE ratio of 29.54, a P/E/G ratio of 1.18 and a beta of 1.58. 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 firm has a 50-day moving average price of $798.82 and a 200 day moving average price of $856.60. Caterpillar Inc. has a 52-week low of $521.02 and a 52-week high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to analyst estimates 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 period in the prior year, the business posted $4.72 EPS. On average, sell-side analysts anticipate that Caterpillar Inc. will post 27.74 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

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

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts expect Caterpillar to deliver year-over-year earnings growth in its upcoming third-quarter report. The company’s positive Earnings ESP and favorable estimate revisions suggest potential for an earnings beat, supported by manufacturing strength and demand for industrial equipment. Caterpillar Reports Next Week: Wall Street Expects Earnings Growth
• Positive Sentiment: Technical and fundamental indicators are encouraging some investors to view the recent decline as a buying opportunity. A hammer chart pattern points to possible support, while upward earnings-estimate revisions could help drive a near-term recovery. Bears Are Losing Control Over Caterpillar
• Positive Sentiment: Zacks lists Caterpillar among industrial companies with the potential to outperform third-quarter earnings expectations, reflecting continued confidence in the sector’s demand environment. Industrial Stocks Set to Outshine Q3 Earnings Estimates
• Neutral Sentiment: The key catalyst is Caterpillar’s forthcoming quarterly report. Investors will focus on whether earnings growth, revenue momentum and management’s outlook validate the optimistic estimates. The company’s previous quarter featured a substantial earnings and revenue beat, providing a supportive comparison.
• Negative Sentiment: The recent selloff has materially weakened CAT’s momentum and caused it to underperform the S&P 500, with much of the decline concentrated in only a few trading sessions. Continued investor caution, profit-taking or disappointment in the upcoming report could keep pressure on the shares. Caterpillar Just Dropped 10% in a Month

Analysts Set New Price Targets

CAT has been the subject of several recent analyst reports. UBS Group upped their target price on shares of Caterpillar from $900.00 to $925.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. Wall Street Zen raised Caterpillar from a "hold" rating to a "buy" rating in a report on Saturday, October 10th. Erste Group Bank downgraded Caterpillar from a "buy" rating to a "hold" rating in a research report on Monday, July 27th. Royal Bank Of Canada increased their price objective on Caterpillar from $877.00 to $897.00 and gave the stock a "sector perform" rating in a report on Wednesday, August 5th. Finally, Truist Financial lowered their target price on Caterpillar from $1,225.00 to $1,100.00 and set a "buy" rating on the stock in a research report on Monday, October 5th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $967.83.

Caterpillar Company 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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