Commonwealth Equity Services LLC Sells 20,162 Shares of Caterpillar Inc. $CAT

Key Points

• Commonwealth Equity Services reduced its Caterpillar stake by 6.5%, selling 20,162 shares in the third quarter. It retained 289,679 shares, valued at about $234.9 million.
• Caterpillar’s latest quarter beat earnings expectations, reporting EPS of $7.20 versus analysts’ $7.06 estimate; revenue rose 17.3% year over year to $20.68 billion, slightly below forecasts.
• Despite strong results and a reported record backlog, Caterpillar faces concerns over weaker orders, production and cost pressures, and uncertainty around AI-related power demand. Analysts’ consensus rating is “Moderate Buy,” with a stated average price target of $898.25.

Commonwealth Equity Services LLC cut its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 6.5% in the third quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 289,679 shares of the industrial products company's stock after selling 20,162 shares during the quarter. Commonwealth Equity Services LLC owned about 0.06% of Caterpillar worth $234,869,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently bought and sold shares of the company. BlackRock Inc. bought a new position in Caterpillar during the 2nd quarter valued at about $40,457,153,000. State Street Corp raised its position in Caterpillar by 4.0% in the 2nd quarter. State Street Corp now owns 36,276,960 shares of the industrial products company's stock worth $37,120,529,000 after purchasing an additional 1,396,356 shares during the period. Bank of America Corp DE bought a new stake in Caterpillar in the second quarter worth about $5,818,150,000. Bank of New York Mellon Corp bought a new stake in Caterpillar in the second quarter worth about $3,192,710,000. Finally, Legal & General Group Plc bought a new stake in Caterpillar in the second quarter worth about $2,783,451,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Price Performance

Caterpillar stock opened at $552.88 on Friday. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.42 and a quick ratio of 0.88. The stock has a market cap of $254.14 billion, a price-to-earnings ratio of 21.69, a price-to-earnings-growth ratio of 1.02 and a beta of 1.65. The firm has a 50-day moving average of $765.36 and a two-hundred day moving average of $806.58. Caterpillar Inc. has a 1 year low of $537.08 and a 1 year high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, topping analysts' consensus estimates of $7.06 by $0.14. Caterpillar had a net margin of 15.21% and a return on equity of 59.87%. The business had revenue of $20.68 billion for the quarter, compared to analyst estimates of $20.76 billion. During the same period last year, the company posted $4.95 earnings per share. The company's quarterly revenue was up 17.3% compared to the same quarter last year. On average, research analysts forecast that Caterpillar Inc. will post 27.62 earnings per share for the current 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 issued a $1.63 dividend. This represents a $6.52 annualized dividend and a dividend yield of 1.2%. The ex-dividend date is Monday, October 26th. Caterpillar's dividend payout ratio is currently 25.58%.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar reported strong third-quarter results, with earnings above consensus, year-over-year growth, and a record $78.1 billion backlog. Surging demand for power-generation equipment is supporting capacity expansion, though production and cost pressures may limit the benefit. Article: CAT Shares Fall Despite Q3 Earnings Beat
• Positive Sentiment: Director James Fish bought 1,000 shares for about $620,000, increasing his stake by nearly 27%. The purchase may signal confidence in the company. Article: Caterpillar director purchases shares
• Neutral Sentiment: Caterpillar completed its acquisition of the Fabick Cat dealership. The deal expands its dealer operations in several Midwestern states, but the near-term financial effect is unclear. Article: Caterpillar completes Fabick Cat acquisition
• Negative Sentiment: The broader AI-trade selloff is weighing on industrial stocks, with investors treating Caterpillar as a beneficiary of data-center power investment and questioning whether that spending will continue. Reports tied the market reaction to expectations of less AI spending after Democrats won Congress; they noted no new company-specific catalyst. Article: Caterpillar caught up in AI trade selloff
• Negative Sentiment: Morgan Stanley cut its price target by 26%, citing a shift toward testing Caterpillar’s cyclical fundamentals. Reports also point to weaker orders, dealer inventory reductions, production constraints, tariffs and manufacturing costs—all risks to margins and backlog conversion. Article: Morgan Stanley cuts Caterpillar price target

Insider Buying and Selling at Caterpillar

In related news, CEO Joseph Creed sold 32,401 shares of Caterpillar stock in a transaction dated 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. 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 through the SEC website. Also, Director James C. Fish, Jr. acquired 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 completion of the purchase, the director owned 4,714 shares of the company's stock, valued at $2,924,518.46. This trade represents a 26.93% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.33% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of research analysts have recently commented on the company. Barclays upped their target price on Caterpillar from $800.00 to $900.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Freedom Broker decreased their price target on Caterpillar from $980.00 to $800.00 and set a "buy" rating for the company in a research note on Monday. President Capital assumed coverage on Caterpillar in a report on Friday, September 18th. They set a "buy" rating and a $999.00 price objective for the company. Royal Bank Of Canada dropped their price objective on Caterpillar from $897.00 to $722.00 and set a "sector perform" rating for the company in a report on Friday, October 30th. Finally, Erste Group Bank downgraded Caterpillar from a "buy" rating to a "hold" rating in a research report on Monday, July 27th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $898.25.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.