First Business Financial Services Inc. Reduces Stake in Caterpillar Inc. $CAT

Key Points

• First Business Financial Services Inc. cut its Caterpillar stake by 95.4% in the fourth quarter, leaving it with 672 shares worth about $385,000.
• Caterpillar reported a strong quarter, with EPS of $5.54 beating estimates and revenue of $17.42 billion topping forecasts, while revenue rose 22.2% year over year.
• Wall Street sentiment remains constructive: several analysts raised price targets, and the stock currently carries a Moderate Buy consensus with an average target of $923.14.

First Business Financial Services Inc. reduced its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 95.4% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 672 shares of the industrial products company's stock after selling 13,995 shares during the quarter. First Business Financial Services Inc.'s holdings in Caterpillar were worth $385,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. Illinois Municipal Retirement Fund boosted its position in Caterpillar by 7.3% in the 3rd quarter. Illinois Municipal Retirement Fund now owns 17,262 shares of the industrial products company's stock valued at $8,237,000 after buying an additional 1,181 shares during the period. Caprock Group LLC acquired a new stake in Caterpillar in the 3rd quarter valued at about $8,893,000. State of New Jersey Common Pension Fund D raised its position in Caterpillar by 2.5% in the 3rd quarter. State of New Jersey Common Pension Fund D now owns 165,677 shares of the industrial products company's stock valued at $79,053,000 after purchasing an additional 4,010 shares in the last quarter. Juno Financial Group LLC acquired a new stake in Caterpillar in the 4th quarter valued at about $877,000. Finally, Vanguard Personalized Indexing Management LLC raised its position in Caterpillar by 3.6% in the 3rd quarter. Vanguard Personalized Indexing Management LLC now owns 73,363 shares of the industrial products company's stock valued at $35,023,000 after purchasing an additional 2,565 shares in the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Caterpillar Trading Down 0.5%

CAT opened at $859.90 on Wednesday. The business's 50-day simple moving average is $781.90 and its 200-day simple moving average is $685.43. The company has a market cap of $396.06 billion, a P/E ratio of 42.80, a PEG ratio of 1.70 and a beta of 1.63. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. Caterpillar Inc. has a one year low of $336.24 and a one year high of $931.35.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. The firm had revenue of $17.42 billion for the quarter, compared to the consensus estimate of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm's quarterly revenue was up 22.2% compared to the same quarter last year. During the same quarter last year, the business posted $4.25 EPS. As a group, equities research analysts expect that Caterpillar Inc. will post 24.67 EPS for the current fiscal year.

Caterpillar Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, May 19th. Investors of record on Monday, April 20th were paid a dividend of $1.51 per share. This represents a $6.04 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Monday, April 20th. Caterpillar's dividend payout ratio (DPR) is currently 30.06%.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Multiple Zacks Research notes raised Caterpillar’s earnings estimates across several periods, including FY2026, FY2027, and FY2028, signaling confidence that profit growth can stay strong well beyond this year. MarketBeat CAT earnings estimate updates
• Positive Sentiment: Analysts also reset Caterpillar’s fair value higher and cited higher price targets and an upgrade, suggesting the stock may still have room to re-rate as investors assign a richer multiple to its earnings and growth outlook. Yahoo Finance analyst valuation article
• Positive Sentiment: Recent coverage highlighted Caterpillar as a long-term winner because of rising revenues, stronger earnings growth versus peers like Deere, and exposure to AI infrastructure and heavy equipment demand. Zacks Caterpillar vs. Deere article
• Neutral Sentiment: Investor attention has picked up around CAT, with multiple articles framing it as a prominent industrial and AI-infrastructure name, but these pieces are more about visibility than a new catalyst. Yahoo Finance investor attention article
• Negative Sentiment: Some coverage noted tariff and workforce concerns, which could pressure margins or complicate the operating outlook even as sentiment remains constructive overall. MSN tariff/workforce article

Insider Activity

In related news, insider Jason Kaiser sold 5,642 shares of the firm's stock in a transaction that occurred on Monday, May 4th. The stock was sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the transaction, the insider owned 9,594 shares in the company, valued at $8,471,789.82. This trade represents a 37.03% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the firm's stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the transaction, the chief financial officer owned 52,935 shares in the company, valued at $48,631,913.85. This represents a 22.85% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 100,551 shares of company stock worth $91,170,351 over the last ninety days. 0.33% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. HSBC increased their price target on Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. Citigroup increased their price target on Caterpillar from $905.00 to $1,020.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Oppenheimer set a $980.00 price target on Caterpillar and gave the company an "outperform" rating in a research report on Friday, May 1st. Royal Bank Of Canada increased their price objective on Caterpillar from $587.00 to $658.00 and gave the company a "sector perform" rating in a report on Friday, January 30th. Finally, Robert W. Baird increased their price objective on Caterpillar from $940.00 to $1,165.00 and gave the company an "outperform" rating in a report on Friday, May 1st. Sixteen analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Caterpillar has an average rating of "Moderate Buy" and a consensus price target of $923.14.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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