Caterpillar Sees Unusually Large Options Volume (NYSE:CAT)

Caterpillar Inc. (NYSE:CAT) was the target of unusually large options trading activity on Tuesday. Stock investors bought 31,623 call options on the company. This is an increase of 62% compared to the typical volume of 19,523 call options.

Caterpillar Trading Down 4.2%

CAT stock opened at $596.64 on Thursday. Caterpillar has a 12 month low of $267.30 and a 12 month high of $627.50. The firm’s 50-day moving average is $577.99 and its 200 day moving average is $490.53. The company has a market capitalization of $279.22 billion, a PE ratio of 30.63, a P/E/G ratio of 2.46 and a beta of 1.57. The company has a debt-to-equity ratio of 1.34, a current ratio of 1.38 and a quick ratio of 0.86.

Caterpillar (NYSE:CAT) last issued its earnings results on Monday, November 3rd. The industrial products company reported $4.95 EPS for the quarter, topping analysts’ consensus estimates of $4.52 by $0.43. The business had revenue of $17.64 billion for the quarter, compared to the consensus estimate of $16.72 billion. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. The company’s revenue for the quarter was up 9.5% compared to the same quarter last year. During the same period in the prior year, the firm earned $5.17 EPS. On average, research analysts anticipate that Caterpillar will post 19.86 EPS for the current 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 issued a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a yield of 1.0%. The ex-dividend date is Tuesday, January 20th. Caterpillar’s dividend payout ratio (DPR) is presently 31.01%.

Insider Transactions at Caterpillar

In related news, Director David Maclennan acquired 300 shares of Caterpillar stock in a transaction on Thursday, November 6th. The shares were bought at an average cost of $568.86 per share, with a total value of $170,658.00. Following the completion of the purchase, the director directly owned 7,947 shares of the company’s stock, valued at $4,520,730.42. The trade was a 3.92% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, insider Anthony D. Fassino sold 8,184 shares of the firm’s stock in a transaction that occurred on Monday, November 10th. The shares were sold at an average price of $570.18, for a total value of $4,666,353.12. Following the completion of the sale, the insider directly owned 41,512 shares of the company’s stock, valued at $23,669,312.16. The trade was a 16.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 71,895 shares of company stock worth $39,758,116. 0.33% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Caterpillar

A number of hedge funds and other institutional investors have recently made changes to their positions in CAT. Valeo Financial Advisors LLC increased its position in Caterpillar by 36,842.1% during the 2nd quarter. Valeo Financial Advisors LLC now owns 7,299,751 shares of the industrial products company’s stock valued at $2,833,836,000 after purchasing an additional 7,279,991 shares during the period. Norges Bank bought a new position in shares of Caterpillar during the second quarter valued at approximately $2,165,899,000. Wellington Management Group LLP increased its holdings in Caterpillar by 3,949.8% during the third quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company’s stock valued at $2,494,568,000 after buying an additional 5,098,964 shares during the period. Massachusetts Financial Services Co. MA raised its stake in Caterpillar by 1,851.8% in the third quarter. Massachusetts Financial Services Co. MA now owns 1,830,414 shares of the industrial products company’s stock worth $873,382,000 after buying an additional 1,736,631 shares in the last quarter. Finally, Assenagon Asset Management S.A. lifted its holdings in Caterpillar by 546.6% during the second quarter. Assenagon Asset Management S.A. now owns 843,093 shares of the industrial products company’s stock worth $327,297,000 after buying an additional 712,711 shares during the period. Institutional investors own 70.98% of the company’s stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Launched Cat AI Assistant and committed $25M to workforce/innovation — positions Caterpillar to monetize AI-enabled services across sales, maintenance and fleet management, a high‑margin recurring revenue avenue. Caterpillar Unveils AI-Powered Future and Invests in the Workforce Building It
• Positive Sentiment: Expanded collaboration with NVIDIA to add edge/physical AI and robotics to machines and factories — could accelerate time‑to‑revenue for autonomy and data services across construction, mining and power customers. Caterpillar Teams With NVIDIA to Revolutionize Heavy Industry with Physical AI and Robotics
• Positive Sentiment: Unveiled next‑generation autonomy deployments (including first quarry deployment) and machine previews at CES — visibility on commercial autonomy rollouts supports upgradeable hardware + software/service revenue mix. Caterpillar Unveils the Next Era of Autonomy in Construction
• Neutral Sentiment: CEO Joe Creed elected chairman (Umpleby retiring April 1) — smooth leadership transition reduces governance uncertainty but is largely neutral for near‑term operations. Caterpillar Chief Executive Officer Joe Creed Elected Chairman of the Board
• Neutral Sentiment: Unusual options activity (large call buying) indicates speculative bullish positioning that can amplify intraday moves but is ambiguous for fundamentals.
• Negative Sentiment: CFO Andrew Bonfield sold 10,000 shares late‑Dec (SEC filing) — can be interpreted as executive profit‑taking amid a strong rally. Andrew Bonfield Sells 10,000 Shares of Caterpillar (NYSE:CAT) Stock
• Negative Sentiment: Valuation concerns and some analyst caution after a large run‑up: outlets note gains may be priced in and recommend consolidation/holds for now. Caterpillar Roars On AI Power Demand, But Easy Money Has Been Made (Downgrade)
• Negative Sentiment: Minor institutional trimming reported (Asset Management One) — small signal of portfolio rebalancing after strong performance. Asset Management One Co. Ltd. Reduces Position in Caterpillar Inc. $CAT

Analysts Set New Price Targets

CAT has been the subject of a number of analyst reports. Sanford C. Bernstein raised their price target on Caterpillar from $557.00 to $630.00 and gave the stock a “market perform” rating in a research report on Friday, December 19th. Barclays increased their target price on shares of Caterpillar from $485.00 to $555.00 and gave the company an “equal weight” rating in a research note on Thursday, October 30th. Robert W. Baird lifted their price target on shares of Caterpillar from $612.00 to $680.00 and gave the stock an “outperform” rating in a research note on Thursday, October 30th. JPMorgan Chase & Co. upped their price target on shares of Caterpillar from $650.00 to $730.00 and gave the company an “overweight” rating in a report on Thursday, October 30th. Finally, Raymond James Financial reissued a “market perform” rating on shares of Caterpillar in a research note on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $618.70.

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.