Diamond Hill Capital Management Inc. Sells 338,657 Shares of Caterpillar Inc. $CAT

Diamond Hill Capital Management Inc. trimmed its position in shares of Caterpillar Inc. (NYSE:CAT) by 42.5% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 458,542 shares of the industrial products company’s stock after selling 338,657 shares during the period. Diamond Hill Capital Management Inc.’s holdings in Caterpillar were worth $218,793,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. WealthShield Partners LLC raised its holdings in shares of Caterpillar by 1.6% during the third quarter. WealthShield Partners LLC now owns 1,122 shares of the industrial products company’s stock valued at $535,000 after acquiring an additional 18 shares in the last quarter. one8zero8 LLC increased its position in Caterpillar by 3.2% during the 3rd quarter. one8zero8 LLC now owns 619 shares of the industrial products company’s stock valued at $295,000 after purchasing an additional 19 shares during the period. Abacus Planning Group Inc. raised its holdings in Caterpillar by 0.6% in the 3rd quarter. Abacus Planning Group Inc. now owns 3,214 shares of the industrial products company’s stock worth $1,534,000 after purchasing an additional 20 shares in the last quarter. Cyr Financial Inc. boosted its stake in shares of Caterpillar by 2.5% during the 3rd quarter. Cyr Financial Inc. now owns 811 shares of the industrial products company’s stock valued at $387,000 after purchasing an additional 20 shares in the last quarter. Finally, Coastwise Capital Group LLC increased 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 period. 70.98% of the stock is owned by institutional investors.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q4 beat and revenue/backlog strength — CAT reported revenue and EPS above expectations and highlighted a record backlog that supports near‑term revenue visibility. Zacks: Post Q4 analysis
• Positive Sentiment: AI / data‑center tailwind — Coverage highlights growing demand for power and infrastructure tied to AI data‑center buildouts, which is a new revenue catalyst beyond traditional equipment cycles. Yahoo: AI data centers
• Positive Sentiment: Analyst upgrade & higher price target — HSBC raised its CAT target to $850 and maintained a buy rating, adding upward pressure to the stock. MarketScreener: HSBC PT raise
• Neutral Sentiment: Market momentum helped lift the name — CAT was one of the contributors to the Dow’s rally today, so some of the move is broad market/sector strength rather than company‑specific news. MSN: Dow soars
• Neutral Sentiment: Valuation debate — Multiple writeups note that CAT’s rerating has pushed valuation to a premium, framing risk/reward even as fundamentals improve. This shapes investor caution but doesn’t change the underlying backlog/earnings. MarketBeat: Valuation piece
• Negative Sentiment: Large insider selling — Several senior insiders disclosed multi‑million dollar stock sales (e.g., Denise C. Johnson, Bob De Lange), which can signal profit‑taking and may create short‑term selling pressure. InsiderTrades: Insider sales
• Negative Sentiment: Analyst caution on pace of growth — CFRA and others warn that while financials are strong, underlying growth may not be fast enough to justify some of the recent extreme share‑price moves; that comment tempers the rally. YouTube: CFRA caution

Insider Activity

In other news, 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 completion of the sale, the chief financial officer directly owned 45,460 shares in the company, valued at $26,142,227.60. The trade was a 18.03% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Jason Kaiser sold 10,707 shares of the stock in a transaction that occurred on Tuesday, November 11th. The shares were sold at an average price of $563.60, for a total transaction of $6,034,465.20. Following the transaction, the insider owned 8,649 shares in the company, valued at approximately $4,874,576.40. This trade represents a 55.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 120,747 shares of company stock worth $78,324,008. 0.33% of the stock is owned by corporate insiders.

Caterpillar Trading Up 7.1%

NYSE:CAT opened at $726.38 on Friday. The stock has a market cap of $339.93 billion, a price-to-earnings ratio of 38.60, a PEG ratio of 1.72 and a beta of 1.58. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44. The company’s 50 day moving average price is $617.15 and its 200-day moving average price is $529.77. Caterpillar Inc. has a 52 week low of $267.30 and a 52 week high of $727.40.

Caterpillar (NYSE:CAT) last released its quarterly earnings data on Thursday, January 29th. The industrial products company reported $5.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.67 by $0.49. The business had revenue of $19.13 billion for the quarter, compared to analysts’ expectations of $17.81 billion. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The firm’s quarterly revenue was up 17.9% on a year-over-year basis. During the same period in the prior year, the firm posted $5.14 EPS. On average, equities research analysts forecast that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The firm also recently announced 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. The ex-dividend date of this dividend is Tuesday, January 20th. This represents a $6.04 dividend on an annualized basis and a yield of 0.8%. Caterpillar’s payout ratio is 32.09%.

Analyst Upgrades and Downgrades

Several analysts have commented on CAT shares. Oppenheimer raised their price objective on shares of Caterpillar from $700.00 to $729.00 and gave the stock an “outperform” rating in a report on Friday, January 30th. Jefferies Financial Group lifted their price target on Caterpillar from $700.00 to $750.00 and gave the company a “buy” rating in a research report on Tuesday, January 27th. Truist Financial upped their price target on Caterpillar from $729.00 to $786.00 and gave the stock a “buy” rating in a research note on Monday, February 2nd. Wolfe Research boosted their target price on shares of Caterpillar from $470.00 to $670.00 and gave the company an “outperform” rating in a report on Friday, January 2nd. Finally, JPMorgan Chase & Co. upped their target price on shares of Caterpillar from $740.00 to $765.00 and gave the stock an “overweight” rating in a research report on Friday, January 30th. Sixteen analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $690.90.

Caterpillar 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.