CPC Advisors LLC Lowers Position in Caterpillar Inc. $CAT

CPC Advisors LLC trimmed its stake in shares of Caterpillar Inc. (NYSE:CAT) by 96.8% in the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 564 shares of the industrial products company’s stock after selling 17,106 shares during the period. CPC Advisors LLC’s holdings in Caterpillar were worth $400,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Wellington Management Group LLP increased its holdings in shares of Caterpillar by 3,949.8% in the third quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company’s stock worth $2,494,568,000 after purchasing an additional 5,098,964 shares during the last quarter. Capital International Investors purchased a new position in Caterpillar during the 4th quarter valued at approximately $1,225,317,000. Northwestern Mutual Wealth Management Co. increased its stake in Caterpillar by 573.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company’s stock worth $861,947,000 after acquiring an additional 1,281,087 shares during the last quarter. Bank of America Corp DE raised its holdings in shares of Caterpillar by 16.0% during the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock worth $3,860,457,000 after acquiring an additional 928,974 shares in the last quarter. Finally, Cynosure Group LLC grew its holdings in shares of Caterpillar by 8,359.6% in the fourth quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company’s stock valued at $294,314,000 after purchasing an additional 507,681 shares in the last quarter. Institutional investors own 70.98% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Wolfe Research increased their price objective on shares of Caterpillar from $670.00 to $750.00 and gave the company an “outperform” rating in a research report on Tuesday, March 31st. Bank of America upped their target price on shares of Caterpillar from $930.00 to $989.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Rothschild & Co Redburn lifted their price target on Caterpillar from $700.00 to $950.00 and gave the stock a “neutral” rating in a research report on Thursday, May 14th. Zacks Research raised Caterpillar from a “hold” rating to a “strong-buy” rating in a research note on Monday, June 8th. Finally, Williams Trading set a $825.00 price objective on Caterpillar in a research report on Tuesday, March 10th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $935.09.

Insider Activity

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

Caterpillar Trading Up 3.5%

Shares of CAT opened at $1,020.36 on Tuesday. The company’s fifty day simple moving average is $879.72 and its 200-day simple moving average is $744.67. The company has a market cap of $469.97 billion, a P/E ratio of 50.79, a P/E/G ratio of 1.95 and a beta of 1.59. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. Caterpillar Inc. has a twelve month low of $357.73 and a twelve month high of $1,023.29.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping 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 $17.41 billion during the quarter, compared to analysts’ expectations of $16.53 billion. During the same period in the previous year, the company earned $4.25 EPS. The firm’s revenue for the quarter was up 22.2% compared to the same quarter last year. As a group, analysts expect that Caterpillar Inc. will post 24.64 EPS for the current year.

Caterpillar Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a dividend yield of 0.6%. This is a boost from Caterpillar’s previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. Caterpillar’s dividend payout ratio (DPR) is presently 30.06%.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is benefiting from news that Chevron will supply power to a major Microsoft data center using natural gas turbines from Caterpillar and GE Vernova, highlighting CAT’s role in the booming AI infrastructure and power-generation market.
• Positive Sentiment: The stock has extended its winning streak for seven consecutive sessions, with traders pointing to a record run and strong technical momentum as a reason for continued buying.
• Positive Sentiment: Analysts and market commentary are increasingly bullish on Caterpillar’s long-term outlook, citing its high-quality business profile, strong earnings backdrop, and recent dividend increase of 8% to $1.63 per share.
• Neutral Sentiment: Several recent articles simply note that Caterpillar is drawing heavy investor attention and screening well in “top stock” and “high quality” lists, which supports interest but does not add a new fundamental catalyst.
• Neutral Sentiment: Market commentary also notes that Caterpillar’s share price has climbed above the $1,000 level, underscoring momentum, but this is more a milestone than a new driver.
• Negative Sentiment: One valuation-focused note says Caterpillar may be overvalued after its recent rally, which could temper enthusiasm if investors start worrying about the stock’s stretched multiple.

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.