Gerber Kawasaki Wealth & Investment Management Acquires New Position in Caterpillar Inc. $CAT

Key Points

• Gerber Kawasaki acquired a new Caterpillar position in the third quarter, buying 2,072 shares valued at approximately $1.68 million. Institutional investors collectively own about 71% of the stock.
• Caterpillar reported quarterly earnings of $7.20 per share, above the $7.06 consensus, while revenue of $20.68 billion came in slightly below estimates; revenue increased 17.3% year over year.
• Analyst views are mixed: the stock has a Moderate Buy consensus and an average price target of $898.25, though several firms recently lowered targets and some maintain neutral ratings.

Gerber Kawasaki Wealth & Investment Management acquired a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the 3rd quarter, according to its most recent 13F filing with the SEC. The firm acquired 2,072 shares of the industrial products company's stock, valued at approximately $1,680,000.

Other institutional investors and hedge funds have also bought and sold shares of the company. Diversify Advisory Services LLC purchased a new stake in shares of Caterpillar during the 2nd quarter worth $5,372,000. D.B. Root & Company LLC purchased a new position in Caterpillar in the second quarter valued at about $850,000. Dearborn Partners LLC purchased a new position in Caterpillar in the second quarter valued at about $20,293,000. B. Metzler seel. Sohn & Co. AG raised its holdings in Caterpillar by 4.3% in the second quarter. B. Metzler seel. Sohn & Co. AG now owns 62,731 shares of the industrial products company's stock worth $66,802,000 after purchasing an additional 2,590 shares in the last quarter. Finally, Van Hulzen Asset Management LLC raised its holdings in Caterpillar by 85.3% in the second quarter. Van Hulzen Asset Management LLC now owns 2,809 shares of the industrial products company's stock worth $2,991,000 after purchasing an additional 1,293 shares in the last quarter. 70.98% of the stock is owned by institutional investors.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is expanding engine and turbine production to meet data-center demand, a growth opportunity for its power-generation business. The company also reported a record $78 billion backlog and strong quarterly growth, although margin pressure remains a concern. Article: Caterpillar expands production of engines and turbines to meet data center demand
• Positive Sentiment: Director James Fish bought 1,000 shares for about $620,000, increasing his holdings by roughly 27%. The insider purchase may signal confidence in Caterpillar’s prospects. Article: Caterpillar director share purchase
• Positive Sentiment: Freedom Capital Markets maintained a Buy rating after lowering its price target to $800 from $980, still indicating substantial potential upside from the price cited in the report. Article: Freedom Capital Markets price target
• Neutral Sentiment: Caterpillar completed its acquisition of long-time dealer John Fabick Tractor Company, adding its Missouri, Illinois, Wisconsin and Michigan Upper Peninsula operations to the company’s dealer network. The deal may strengthen regional customer support, though its near-term financial impact is unclear. Article: Caterpillar acquires Fabick Cat dealership
• Negative Sentiment: DA Davidson cut its price target to $685 from $882 and kept a Neutral rating, citing valuation concerns despite improving demand. The debate over whether Caterpillar’s premium valuation and margin pressures are justified could weigh on sentiment. Article: Caterpillar target cut and margin concerns

Analyst Ratings Changes

A number of analysts have recently weighed in on the stock. Oppenheimer restated an "outperform" rating and issued a $1,009.00 price target on shares of Caterpillar in a report on Thursday, October 29th. Wall Street Zen lowered shares of Caterpillar from a "buy" rating to a "hold" rating in a research note on Saturday. UBS Group decreased their target price on shares of Caterpillar from $925.00 to $750.00 and set a "neutral" rating for the company in a research report on Monday, October 26th. Truist Financial restated a "buy" rating and issued a $1,027.00 target price (down from $1,100.00) on shares of Caterpillar in a research note on Friday, October 30th. Finally, Citigroup cut their price target on shares of Caterpillar from $950.00 to $800.00 and set a "buy" rating on the stock in a report on Friday, October 30th. Fifteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. Based on data from MarketBeat, Caterpillar has a consensus rating of "Moderate Buy" and an average target price of $898.25.

Insiders Place Their Bets

In related news, CEO Joseph E. Creed sold 32,401 shares of the company's stock in a transaction 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 transaction, the chief executive officer directly owned 34,555 shares of the company's stock, valued at $27,954,303.90. This represents a 48.39% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director C Jr bought 1,000 shares of Caterpillar stock in a transaction that occurred on Monday, November 2nd. The stock was purchased at an average price of $620.39 per share, with a total value of $620,390.00. Following the purchase, the director directly owned 4,714 shares in the company, valued at $2,924,518.46. The trade was 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 owned by insiders.

Caterpillar Price Performance

Shares of CAT stock opened at $623.53 on Wednesday. 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 0.88 and a current ratio of 1.42. The firm has a market capitalization of $286.62 billion, a price-to-earnings ratio of 24.46, a PEG ratio of 1.05 and a beta of 1.65. The stock's 50-day simple moving average is $775.16 and its 200-day simple moving average is $807.33.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Thursday, October 29th. The industrial products company reported $7.20 EPS for the quarter, beating the consensus estimate of $7.06 by $0.14. The firm had revenue of $20.68 billion during the quarter, compared to analyst estimates of $20.76 billion. Caterpillar had a net margin of 15.21% and a return on equity of 59.87%. Caterpillar's revenue was up 17.3% on a year-over-year basis. During the same period last year, the firm posted $4.95 EPS. As a group, equities analysts forecast that Caterpillar Inc. will post 27.62 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The business 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. The ex-dividend date of this dividend is Monday, October 26th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 1.0%. Caterpillar's payout ratio is 25.58%.

About Caterpillar

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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