Caterpillar Inc. $CAT Stock: VIRGINIA RETIREMENT SYSTEMS ET Al Decreases Holdings

Key Points

• Virginia Retirement Systems reduced its Caterpillar stake by 16.8% in the third quarter, selling 7,520 shares and retaining 37,112 shares valued at approximately $30.1 million. Institutional investors and hedge funds collectively own 70.98% of CAT.
• Caterpillar reported third-quarter earnings of $7.20 per share, exceeding estimates, while revenue rose 17.3% year over year to $20.68 billion. Power-generation demand and a record $78.1 billion backlog supported results, though unchanged growth guidance and cost concerns pressured the stock.
• CAT shares opened at $622.73, down 3.8% and well below their 50-day and 200-day moving averages. The company declared a quarterly dividend of $1.63 per share, while analysts maintained a “Moderate Buy” consensus with a $913.96 average price target.

VIRGINIA RETIREMENT SYSTEMS ET Al reduced its stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 16.8% in the 3rd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 37,112 shares of the industrial products company's stock after selling 7,520 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al's holdings in Caterpillar were worth $30,090,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Decker Retirement Planning Inc. lifted its stake in shares of Caterpillar by 440.0% in 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 period. PFS Partners LLC boosted its holdings in Caterpillar by 1,750.0% in the third quarter. PFS Partners LLC now owns 37 shares of the industrial products company's stock valued at $30,000 after acquiring an additional 35 shares during the last quarter. Matrix Trust Co increased its position in Caterpillar by 93.8% during 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 period. Cedar Mountain Advisors LLC increased its position in Caterpillar by 82.1% during the 1st quarter. Cedar Mountain Advisors LLC now owns 51 shares of the industrial products company's stock valued at $36,000 after purchasing an additional 23 shares during the period. Finally, Axiom Investment Management LLC bought a new position in Caterpillar during the 2nd quarter worth approximately $36,000. 70.98% of the stock is owned by institutional investors and hedge funds.

Caterpillar Stock Down 3.8%

CAT stock opened at $622.73 on Friday. The stock's 50 day simple moving average is $783.25 and its 200 day simple moving average is $807.52. Caterpillar Inc. has a fifty-two week low of $537.08 and a fifty-two week high of $1,073.46. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.85 and a current ratio of 1.42. The company has a market cap of $286.25 billion, a P/E ratio of 24.43, a price-to-earnings-growth ratio of 1.07 and a beta of 1.58.

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. The company had revenue of $20.68 billion for the quarter, compared to analyst estimates of $20.76 billion. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. Caterpillar's revenue for the quarter was up 17.3% on a year-over-year basis. During the same period in the prior year, the firm earned $4.95 earnings per share. On average, research analysts expect that Caterpillar Inc. will post 27.75 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be issued a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Monday, October 26th. Caterpillar's dividend payout ratio (DPR) is currently 25.58%.

Analyst Ratings Changes

CAT has been the topic of a number of recent analyst reports. Zacks Research downgraded shares of Caterpillar from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 5th. Weiss Ratings cut shares of Caterpillar from a "buy (b)" rating to a "buy (b-)" rating in a research report on Thursday. President Capital began coverage on shares of Caterpillar in a research note on Friday, September 18th. They set a "buy" rating and a $999.00 target price for the company. Robert W. Baird set a $970.00 target price on shares of Caterpillar in a report on Wednesday, August 5th. Finally, Barclays boosted their target price on shares of Caterpillar from $800.00 to $900.00 and gave the company an "equal weight" rating in a report on Thursday, August 6th. Fifteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $913.96.

Caterpillar News Roundup

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.

Insider Activity at Caterpillar

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

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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