Lawood & Co. Acquires New Stake in Caterpillar Inc. $CAT

Key Points

• Lawood & Co. bought 4,427 Caterpillar shares worth approximately $3.59 million in the third quarter, making CAT about 2.2% of its portfolio. Institutional investors collectively own 70.98% of the company.
• Caterpillar reported strong quarterly results, with EPS of $8.17 and revenue of $20.54 billion, exceeding estimates and representing 23.7% year-over-year revenue growth.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $989.17, though some firms downgraded the stock or reduced targets amid technical weakness, high Treasury yields and regulatory uncertainty.

Lawood & Co. bought a new position in Caterpillar Inc. (NYSE:CAT - Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 4,427 shares of the industrial products company's stock, valued at approximately $3,589,000. Caterpillar makes up approximately 2.2% of Lawood & Co.'s portfolio, making the stock its 12th largest holding.

Several other hedge funds also recently made changes to their positions in CAT. Lam Group Inc. bought a new position in Caterpillar in the first quarter worth $26,000. Decker Retirement Planning Inc. boosted its holdings in shares of Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock valued at $29,000 after buying an additional 22 shares in the last quarter. Cornerstone Financial Management LLC purchased a new stake in shares of Caterpillar in the 4th quarter worth about $32,000. Matrix Trust Co increased its stake in shares of Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock worth $33,000 after acquiring an additional 15 shares in the last quarter. Finally, Monetary Solutions Ltd purchased a new position in Caterpillar during the 4th quarter valued at about $35,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Stock Up 0.7%

Shares of CAT stock traded up $5.70 during mid-day trading on Friday, hitting $801.88. The company's stock had a trading volume of 747,731 shares, compared to its average volume of 2,809,970. The stock has a market cap of $368.60 billion, a price-to-earnings ratio of 34.51, a PEG ratio of 1.40 and a beta of 1.58. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. Caterpillar Inc. has a 52-week low of $491.30 and a 52-week high of $1,073.46. The business has a 50-day moving average price of $822.61 and a 200 day moving average price of $853.98.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The company had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. During the same period last year, the company earned $4.72 EPS. Caterpillar's revenue for the quarter was up 23.7% on a year-over-year basis. Research analysts predict that Caterpillar Inc. will post 27.5 EPS for the current fiscal year.

Insider Activity

In other news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction that occurred on Friday, August 28th. The shares were 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 sale was disclosed in a legal filing with the SEC, which is available through this link. 0.33% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages have weighed in on CAT. Citigroup restated a "buy" rating on shares of Caterpillar in a report on Monday, September 14th. Wall Street Zen cut Caterpillar from a "buy" rating to a "hold" rating in a research report on Saturday, September 26th. Weiss Ratings downgraded Caterpillar from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, September 29th. Zacks Research lowered Caterpillar from a "strong-buy" rating to a "hold" rating in a research report on Monday. Finally, Truist Financial cut their price objective on shares of Caterpillar from $1,225.00 to $1,100.00 and set a "buy" rating on the stock in a research report on Monday. Fifteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat, Caterpillar has an average rating of "Moderate Buy" and an average price target of $989.17.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Volume growth is boosting revenue expectations. Caterpillar’s higher equipment volumes reportedly added $5.4 billion to first-half 2026 revenue, with momentum across its Construction Industries, Resource Industries and Energy & Transportation segments. The trend has prompted a more optimistic full-year outlook and supports the case for continued earnings growth. Will Caterpillar's Strong Volume Growth Keep Driving Sales Up in 2026?
• Positive Sentiment: Analysts are raising long-term earnings estimates. Zacks Research increased its estimates for first-quarter 2028 EPS to $8.14, second-quarter 2028 EPS to $10.52 and full-year 2028 EPS to $39.15, up from $36.64 previously. The firm nevertheless maintains a “Hold” rating, limiting the strength of the signal. Caterpillar analyst estimates
• Positive Sentiment: Construction-cycle and AI opportunities remain attractive. J.P. Morgan calls Caterpillar a major beneficiary of an extended U.S. construction cycle. Separately, the company’s use of artificial intelligence to improve productivity without replacing workers could enhance efficiency and support longer-term margins. Caterpillar Is the Market in a Single Stock How Caterpillar Is Using AI to Reinvent Heavy Industry
• Positive Sentiment: A planned $1 billion North Carolina manufacturing investment signals confidence in future demand and expands Caterpillar’s domestic production capacity. Caterpillar to invest $1 billion in North Carolina manufacturing facility
• Neutral Sentiment: The Caterpillar Foundation’s recovery support for Nepal floods is positive for corporate reputation but is unlikely to materially affect earnings. Caterpillar Foundation Provides Recovery Support for Nepal Floods
• Negative Sentiment: High Treasury yields are pressuring industrial stocks. Rising borrowing costs make financing expensive for customers purchasing large equipment and weigh on valuations, while also increasing concern about construction and energy demand. Gas-compression demand provides a potential offset, but the macroeconomic pressure remains significant. Caterpillar Stock Fell as Treasury Yields Hit 24-Year Highs
• Negative Sentiment: Shares recently fell below their 50-day moving average, creating technical selling pressure despite Caterpillar’s record backlog, strong quarterly results and higher estimates. Truist also lowered its price target from $1,225 to $1,100, which may temper investor enthusiasm. CAT Falls Below 50-Day SMA
• Negative Sentiment: Federal regulators are seeking public information on the farm-equipment market. Although the direct impact on Caterpillar is uncertain, the inquiry adds regulatory uncertainty across the heavy-equipment sector. Caterpillar and Deere Stock Fall as Regulatory Pressure Continues

Caterpillar Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.

The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.

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