Capital World Investors Cuts Stock Position in Caterpillar Inc. $CAT

Capital World Investors lessened its holdings in Caterpillar Inc. (NYSE:CAT) by 12.6% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 4,009,003 shares of the industrial products company’s stock after selling 579,278 shares during the period. Capital World Investors owned about 0.86% of Caterpillar worth $2,296,957,000 as of its most recent SEC filing.

Other hedge funds have also made changes to their positions in the company. Torren Management LLC purchased a new position in shares of Caterpillar in the 4th quarter valued at $27,000. Frazier Financial Advisors LLC increased its stake in Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company’s stock worth $28,000 after buying an additional 33 shares during the period. IFS Advisors LLC purchased a new stake in Caterpillar during the 4th quarter worth $31,000. Rialto Wealth Management LLC increased its stake in Caterpillar by 47.4% during the 4th quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company’s stock worth $32,000 after buying an additional 18 shares during the period. Finally, Noble Wealth Management PBC increased its stake in Caterpillar by 140.0% during the 4th quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company’s stock worth $34,000 after buying an additional 35 shares during the period. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Caterpillar Trading Down 3.8%

NYSE CAT opened at $904.89 on Friday. Caterpillar Inc. has a one year low of $352.26 and a one year high of $946.83. The company has a 50-day simple moving average of $831.99 and a 200-day simple moving average of $714.41. 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 price-to-earnings-growth ratio of 1.78 and a beta of 1.59.

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

Caterpillar Announces Dividend

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

Caterpillar News Roundup

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

Analyst Upgrades and Downgrades

CAT has been the topic of several analyst reports. Morgan Stanley set a $915.00 price target on shares of Caterpillar and gave the stock an “equal weight” rating in a research note on Friday, May 1st. Daiwa Securities Group lifted their price target on shares of Caterpillar from $790.00 to $900.00 and gave the stock a “neutral” rating in a research note on Friday, May 1st. Argus lifted their price target on shares of Caterpillar from $820.00 to $990.00 and gave the stock a “buy” rating in a research note on Tuesday, May 5th. HSBC lifted their price target on shares of Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Finally, Evercore reaffirmed an “outperform” rating and set a $1,103.00 price target on shares of Caterpillar in a research note on Monday, May 11th. Sixteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, Caterpillar currently has an average rating of “Moderate Buy” and an average price target of $933.27.

Insiders Place Their Bets

In other news, CFO Andrew R. J. Bonfield sold 15,674 shares of Caterpillar 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 directly owned 52,935 shares of the company’s stock, valued at approximately $48,631,913.85. The trade was a 22.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Lange Bob De sold 24,222 shares of Caterpillar stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the completion of the transaction, the insider directly owned 86,029 shares of the company’s stock, valued at $79,397,884.68. This trade represents a 21.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 95,773 shares of company stock worth $87,642,635. Corporate insiders own 0.33% of the company’s stock.

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.