Retirement Systems of Alabama Reduces Stock Position in Caterpillar Inc. $CAT

Retirement Systems of Alabama trimmed its position in Caterpillar Inc. (NYSE:CAT) by 0.4% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 234,055 shares of the industrial products company’s stock after selling 985 shares during the period. Retirement Systems of Alabama’s holdings in Caterpillar were worth $111,679,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. Pacific Point Advisors LLC purchased a new position in shares of Caterpillar during the 4th quarter worth $579,000. Brighton Jones LLC increased its stake in Caterpillar by 51.5% in the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company’s stock valued at $2,688,000 after purchasing an additional 2,519 shares during the last quarter. Kathmere Capital Management LLC lifted its position in Caterpillar by 54.6% during the second quarter. Kathmere Capital Management LLC now owns 2,964 shares of the industrial products company’s stock worth $1,151,000 after buying an additional 1,047 shares during the period. Patton Fund Management Inc. acquired a new stake in Caterpillar in the 2nd quarter worth about $279,000. Finally, Cove Private Wealth LLC increased its stake in shares of Caterpillar by 42.5% during the 2nd quarter. Cove Private Wealth LLC now owns 2,359 shares of the industrial products company’s stock valued at $916,000 after acquiring an additional 704 shares during the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar expanded its AI partnership with Nvidia to modernize machines and manufacturing — this supports long-term efficiency and product differentiation. Caterpillar, Nvidia Team Up to Transform Machines and Manufacturing
• Positive Sentiment: Rothschild & Co Redburn raised its price target to $650, signaling upside from some sell-side analysts who see more room to run. Rothschild & Co Redburn Increases Caterpillar Price Target to $650.00
• Positive Sentiment: Oppenheimer flagged positive expectations for CAT shares, adding a supportive analyst view that can buoy sentiment. Caterpillar Stock Price Expected to Rise, Oppenheimer Analyst Says
• Neutral Sentiment: Barclays raised its price target to $610 and kept an equal-weight rating — a modest tweak that acknowledges momentum but stops short of a buy call. Barclays Adjusts Caterpillar Price Target to $610
• Neutral Sentiment: Feature pieces highlight Caterpillar’s push into technology and AI-driven equipment, supporting long-term strategy but not guaranteed near-term revenue shifts. Building The World Through Technology At Caterpillar
• Neutral Sentiment: Recent valuation commentary examines whether recent share gains are justified — useful for investors weighing multiple analyst targets and high P/E multiple. Assessing Caterpillar (CAT) Valuation After Strong Recent Share Price Momentum
• Neutral Sentiment: Caterpillar is scheduled to release quarterly earnings this week; guidance and parts/services commentary will be key catalysts. Caterpillar to Release Quarterly Earnings on Thursday
• Negative Sentiment: Two market headlines note that Caterpillar’s share losses were a major contributor to a multi-hundred-point Dow decline, pressuring sentiment intraday. Goldman Sachs, Caterpillar share losses contribute to Dow’s 411-point drop
• Negative Sentiment: Analysts at Zacks caution CAT may report a decline in earnings next quarter, which raises risk around the upcoming print. Analysts Estimate Caterpillar to Report a Decline in Earnings
• Negative Sentiment: Morgan Stanley raised its price target to $400 but left an underweight rating — the low target implies significant downside in that shop’s view and may temper bullish momentum. Benzinga
• Negative Sentiment: A worker has sued, alleging wrongful firing after reporting racial harassment — a legal/HR risk that can create headline volatility. Caterpillar worker sues, claims firing came after racial harassment report

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Erste Group Bank raised shares of Caterpillar from a “hold” rating to a “buy” rating in a research note on Friday, October 3rd. Morgan Stanley increased their target price on Caterpillar from $395.00 to $400.00 and gave the stock an “underweight” rating in a research report on Friday. Rothschild & Co Redburn boosted their price target on Caterpillar from $420.00 to $650.00 and gave the company a “neutral” rating in a research report on Wednesday. HSBC upgraded Caterpillar from a “hold” rating to a “buy” rating and raised their price objective for the stock from $405.00 to $660.00 in a report on Wednesday, November 5th. Finally, Wells Fargo & Company increased their target price on shares of Caterpillar from $675.00 to $702.00 and gave the stock an “overweight” rating in a research report on Friday. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $637.70.

Insider Activity at Caterpillar

In other Caterpillar news, insider Anthony D. Fassino sold 8,184 shares of the company’s stock in a transaction that occurred on Monday, November 10th. The stock was sold at an average price of $570.18, for a total value of $4,666,353.12. Following the transaction, the insider directly owned 41,512 shares of the company’s stock, valued at $23,669,312.16. This represents a 16.47% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director David Maclennan bought 300 shares of Caterpillar stock in a transaction dated Thursday, November 6th. The shares were acquired at an average price of $568.86 per share, with a total value of $170,658.00. Following the completion of the purchase, the director owned 7,947 shares in the company, valued at approximately $4,520,730.42. The trade was a 3.92% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders sold 54,729 shares of company stock valued at $31,084,308. 0.33% of the stock is currently owned by insiders.

Caterpillar Price Performance

CAT stock opened at $626.71 on Friday. The stock has a 50-day simple moving average of $594.45 and a 200-day simple moving average of $511.37. The firm has a market cap of $293.29 billion, a P/E ratio of 32.17, a price-to-earnings-growth ratio of 2.42 and a beta of 1.57. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.86 and a current ratio of 1.38. Caterpillar Inc. has a 1 year low of $267.30 and a 1 year high of $655.78.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Monday, November 3rd. The industrial products company reported $4.95 earnings per share for the quarter, topping analysts’ consensus estimates of $4.52 by $0.43. Caterpillar had a return on equity of 47.16% and a net margin of 14.34%.The firm had revenue of $17.64 billion during the quarter, compared to analysts’ expectations of $16.72 billion. During the same quarter in the prior year, the business earned $5.17 EPS. Caterpillar’s quarterly revenue was up 9.5% compared to the same quarter last year. On average, equities analysts predict that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, February 19th. Shareholders of record on Tuesday, January 20th will be given a $1.51 dividend. This represents a $6.04 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Tuesday, January 20th. Caterpillar’s dividend payout ratio is presently 31.01%.

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.