Capital International Investors Invests $1.23 Billion in Caterpillar Inc. $CAT

Capital International Investors bought a new position in Caterpillar Inc. (NYSE:CAT) during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 2,138,909 shares of the industrial products company’s stock, valued at approximately $1,225,317,000.

A number of other institutional investors have also recently modified their holdings of CAT. Torren Management LLC purchased a new stake in shares of Caterpillar in the fourth quarter worth $27,000. Frazier Financial Advisors LLC grew its stake in shares of Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after acquiring an additional 33 shares during the last quarter. IFS Advisors LLC purchased a new stake in shares of Caterpillar in the fourth quarter worth $31,000. Rialto Wealth Management LLC grew its stake in shares of Caterpillar by 47.4% in the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock worth $32,000 after acquiring an additional 18 shares during the last quarter. Finally, Noble Wealth Management PBC grew its stake in shares of Caterpillar by 140.0% in the fourth quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company’s stock worth $34,000 after acquiring an additional 35 shares during the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting 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

Insiders Place Their Bets

In other news, insider Denise C. Johnson sold 12,605 shares of the business’s stock in a transaction dated 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 transaction, the insider directly owned 49,825 shares in the company, valued at $45,236,615.75. The trade was a 20.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the business’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 completion of the transaction, the chief financial officer owned 52,935 shares in the company, valued at $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 95,773 shares of company stock valued at $87,642,635. Insiders own 0.33% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the company. HSBC lifted their price objective on Caterpillar from $850.00 to $1,100.00 in a report on Tuesday, May 5th. Bank of America lifted their price objective on Caterpillar from $930.00 to $989.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Morgan Stanley set a $915.00 price objective on Caterpillar and gave the stock an “equal weight” rating in a report on Friday, May 1st. Wall Street Zen upgraded Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, May 2nd. Finally, Williams Trading set a $825.00 price objective on Caterpillar in a report on Tuesday, March 10th. Sixteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $933.27.

Caterpillar Stock Performance

NYSE:CAT opened at $904.89 on Friday. The stock has a 50-day simple moving average of $831.99 and a two-hundred day simple moving average of $714.41. Caterpillar Inc. has a 52-week low of $352.26 and a 52-week high of $946.83. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The firm has a market capitalization of $416.79 billion, a PE ratio of 45.04, a P/E/G ratio of 1.78 and a beta of 1.59.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The business had revenue of $17.42 billion during the quarter, compared to analyst estimates of $16.53 billion. During the same quarter in the previous year, the company posted $4.25 earnings per share. Caterpillar’s revenue for the quarter was up 22.2% on a year-over-year basis. Analysts forecast that Caterpillar Inc. will post 24.68 EPS for the current year.

Caterpillar Announces Dividend

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

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.