First Merchants Corp Cuts Holdings in Caterpillar Inc. $CAT

First Merchants Corp lowered its stake in shares of Caterpillar Inc. (NYSE:CAT) by 8.0% in the third quarter, Holdings Channel reports. The institutional investor owned 10,990 shares of the industrial products company’s stock after selling 958 shares during the period. First Merchants Corp’s holdings in Caterpillar were worth $5,244,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in CAT. Abacus Planning Group Inc. boosted its position in Caterpillar by 0.6% during the third quarter. Abacus Planning Group Inc. now owns 3,214 shares of the industrial products company’s stock valued at $1,534,000 after purchasing an additional 20 shares in the last quarter. Coastwise Capital Group LLC lifted its position in shares of Caterpillar by 1.8% during the third quarter. Coastwise Capital Group LLC now owns 1,168 shares of the industrial products company’s stock valued at $557,000 after buying an additional 21 shares during the last quarter. Live Oak Private Wealth LLC boosted its holdings in shares of Caterpillar by 0.7% in the 3rd quarter. Live Oak Private Wealth LLC now owns 3,525 shares of the industrial products company’s stock valued at $1,682,000 after buying an additional 23 shares in the last quarter. Syntegra Private Wealth Group LLC grew its position in shares of Caterpillar by 2.4% in the 3rd quarter. Syntegra Private Wealth Group LLC now owns 1,037 shares of the industrial products company’s stock worth $495,000 after buying an additional 24 shares during the last quarter. Finally, Coastline Trust Co raised its stake in shares of Caterpillar by 0.4% during the 3rd quarter. Coastline Trust Co now owns 6,530 shares of the industrial products company’s stock worth $3,116,000 after acquiring an additional 24 shares in the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Caterpillar Trading Up 1.2%

Caterpillar stock opened at $623.27 on Wednesday. The stock has a 50-day moving average price of $577.79 and a 200 day moving average price of $489.78. The company has a market capitalization of $291.68 billion, a price-to-earnings ratio of 32.00, a price-to-earnings-growth ratio of 2.43 and a beta of 1.57. Caterpillar Inc. has a 52 week low of $267.30 and a 52 week high of $627.50. The company has a quick ratio of 0.86, a current ratio of 1.38 and a debt-to-equity ratio of 1.34.

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

Caterpillar Announces Dividend

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

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Leadership continuity: CEO Joe Creed was elected Executive Chairman, succeeding D. James Umpleby III (retiring April 1) — a planned succession that reduces governance uncertainty and signals management stability. Caterpillar Chief Executive Officer Joe Creed Elected Chairman of the Board
• Positive Sentiment: Product/technology catalyst: Caterpillar unveiled its Cat AI Assistant at CES to streamline buying, maintenance and operations — a visible push into industrial AI/autonomy that supports aftermarket services and recurring-revenue opportunities. Caterpillar Introduces Cat AI Assistant
• Positive Sentiment: AI/data‑center demand: Coverage highlights Caterpillar’s pivot into power‑generation for AI data centers and growing Energy & Transportation backlogs — a meaningful revenue driver that underpins recent multiple expansion. Caterpillar’s AI Data Center Engine Bet Could Be A Game Changer For Caterpillar (CAT)
• Neutral Sentiment: Options flow: Unusual call buying was reported (call volume well above average), which can indicate bullish positioning or short-term speculation; useful as a sentiment read but not definitive for fundamentals.
• Neutral Sentiment: Analyst interest: Several firms have raised targets and reiterated buy/outperform views (MarketBeat roundups show elevated price targets), providing reference points for upside but also reflecting consensus expectations. Caterpillar Stock Could Top $650 by Year’s End
• Negative Sentiment: Valuation/near‑term caution: Some analysts and commentaries argue much of the AI/data‑center story is already priced in and recommend trimming or a Hold given consolidation risk after a large run. Caterpillar Roars On AI Power Demand, But Easy Money Has Been Made (Downgrade)
• Negative Sentiment: Insider selling: CFO Andrew Bonfield sold 10,000 shares (filed with the SEC), an action that may be read as profit‑taking amid the rally. Caterpillar (NYSE:CAT) CFO Andrew Bonfield Sells 10,000 Shares
• Negative Sentiment: Institutional trimming: Reports show at least one large manager modestly reduced its position, a common post‑rally rebalancing signal that can add selling pressure. Asset Management One Co. Ltd. Reduces Position in Caterpillar Inc. $CAT

Insider Buying and Selling

In other news, insider Lange Bob De sold 14,638 shares of the company’s stock in a transaction dated Wednesday, November 5th. The stock was sold at an average price of $562.36, for a total value of $8,231,825.68. Following the sale, the insider owned 80,209 shares in the company, valued at $45,106,333.24. This represents a 15.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Andrew R. J. Bonfield sold 10,000 shares of Caterpillar stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $575.06, for a total value of $5,750,600.00. Following the transaction, the chief financial officer owned 45,460 shares of the company’s stock, valued at approximately $26,142,227.60. This represents a 18.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 71,895 shares of company stock valued at $39,758,116 in the last 90 days. 0.33% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

Several research firms have issued reports on CAT. Oppenheimer lifted their price target on shares of Caterpillar from $513.00 to $645.00 and gave the stock an “outperform” rating in a report on Thursday, October 30th. Jefferies Financial Group increased their price target on Caterpillar from $570.00 to $700.00 and gave the company a “buy” rating in a research note on Wednesday, November 5th. Barclays raised their price target on Caterpillar from $485.00 to $555.00 and gave the stock an “equal weight” rating in a report on Thursday, October 30th. Evercore ISI increased their price objective on shares of Caterpillar from $476.00 to $630.00 and gave the company an “outperform” rating in a research report on Monday, November 17th. Finally, Sanford C. Bernstein lifted their target price on shares of Caterpillar from $557.00 to $630.00 and gave the stock a “market perform” rating in a research note on Friday, December 19th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $618.70.

Caterpillar Company Profile

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.