Capital Research Global Investors Trims Position in Caterpillar Inc. $CAT

Capital Research Global Investors lowered its stake in shares of Caterpillar Inc. (NYSE:CAT) by 33.8% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 2,845,207 shares of the industrial products company’s stock after selling 1,450,160 shares during the period. Capital Research Global Investors owned approximately 0.61% of Caterpillar worth $1,629,948,000 at the end of the most recent reporting period.

Other large investors also recently bought and sold shares of the company. Illinois Municipal Retirement Fund increased its position in shares of Caterpillar by 7.3% in the third quarter. Illinois Municipal Retirement Fund now owns 17,262 shares of the industrial products company’s stock worth $8,237,000 after acquiring an additional 1,181 shares in the last quarter. Caprock Group LLC acquired a new stake in shares of Caterpillar in the third quarter worth $8,893,000. State of New Jersey Common Pension Fund D increased its position in shares of Caterpillar by 2.5% in the third quarter. State of New Jersey Common Pension Fund D now owns 165,677 shares of the industrial products company’s stock worth $79,053,000 after acquiring an additional 4,010 shares in the last quarter. Juno Financial Group LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth $877,000. Finally, ARK Investment Management LLC increased its position in shares of Caterpillar by 11.7% in the third quarter. ARK Investment Management LLC now owns 31,144 shares of the industrial products company’s stock worth $14,860,000 after acquiring an additional 3,268 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is benefiting from strong demand tied to data center construction and rising power needs, with coverage highlighting record quarterly results and improving sentiment around its power and energy business. Data Center Power Demands Push This Dividend Aristocrat to All Time Highs
• Positive Sentiment: Analysts and commentators remain constructive on Caterpillar’s growth outlook, citing durable tailwinds from AI-related infrastructure spending and a bullish price target in the latest research note. Caterpillar Setting The Pace For Growth In Power And Energy
• Positive Sentiment: Trump administration tariff cuts on farm and construction equipment are being viewed as a margin boost for Caterpillar’s core products, which could support earnings and sentiment. Trump Just Gave Caterpillar Stock a Boost. What to Know.
• Positive Sentiment: Additional coverage framed Caterpillar as one of the stocks poised to benefit from lower equipment tariffs, reinforcing the recent bullish narrative. When Trump Cuts Tariffs on Farm and Construction Equipment, These 5 Stocks Win Big
• Neutral Sentiment: Several articles were more general or commentary-driven, including a decade-long return retrospective and broader construction-stocks roundups, so they are less likely to move the shares directly. If You Invested $1000 in Caterpillar a Decade Ago, This is How Much It’d Be Worth Now
• Neutral Sentiment: Non-fundamental items such as an unrelated garden-caterpillar story and a political donation tracker do not appear to have a direct impact on Caterpillar’s business outlook. New caterpillar that can ‘send you to A&E’ breeding rapidly in gardens

Caterpillar Trading Down 3.8%

NYSE CAT opened at $904.89 on Friday. Caterpillar Inc. has a 12 month low of $352.26 and a 12 month high of $946.83. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. The company has a market capitalization of $416.79 billion, a price-to-earnings ratio of 45.04, a price-to-earnings-growth ratio of 1.78 and a beta of 1.59. The company’s fifty day moving average price is $831.99 and its two-hundred day moving average price is $714.41.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The firm had revenue of $17.42 billion for the quarter, compared to the consensus estimate of $16.53 billion. During the same period in the prior year, the firm posted $4.25 EPS. The firm’s revenue was up 22.2% compared to the same quarter last year. As a group, research analysts predict that Caterpillar Inc. will post 24.68 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th were paid a dividend of $1.51 per share. This represents a $6.04 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Monday, April 20th. Caterpillar’s dividend payout ratio is 30.06%.

Insider Buying and Selling

In other news, CFO Andrew R. J. Bonfield sold 15,674 shares of the firm’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the transaction, the chief financial officer directly owned 52,935 shares in the company, valued at approximately $48,631,913.85. This trade represents a 22.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Denise C. Johnson sold 12,605 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the transaction, the insider owned 49,825 shares in the company, valued at approximately $45,236,615.75. The trade was a 20.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 95,773 shares of company stock worth $87,642,635. Company insiders own 0.33% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Morgan Stanley set a $915.00 price objective on shares of Caterpillar and gave the stock an “equal weight” rating in a research report on Friday, May 1st. UBS Group reaffirmed a “neutral” rating and set a $900.00 price target on shares of Caterpillar in a report on Tuesday. Truist Financial set a $1,043.00 price target on shares of Caterpillar in a report on Friday, May 1st. Jefferies Financial Group raised their price target on shares of Caterpillar from $900.00 to $1,045.00 and gave the company a “buy” rating in a report on Friday, May 1st. Finally, DA Davidson raised their price target on shares of Caterpillar from $650.00 to $845.00 and gave the company a “neutral” rating in a report on Monday, May 4th. Sixteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $933.27.

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.