Alight Capital Management LP Sells 5,000 Shares of Caterpillar Inc. $CAT

Key Points

• Alight Capital Management reduced its Caterpillar stake by 33.3% in the fourth quarter, selling 5,000 shares and leaving it with 10,000 shares worth about $5.73 million.
• Caterpillar’s latest earnings beat expectations, with EPS of $5.54 and revenue of $17.42 billion, while revenue rose 22.2% year over year.
• The company also raised its quarterly dividend to $1.63 per share, and analysts remain broadly positive, with a consensus rating of “Moderate Buy” and a target price of $935.09.

Alight Capital Management LP cut its stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 33.3% during the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 10,000 shares of the industrial products company's stock after selling 5,000 shares during the quarter. Caterpillar makes up about 1.5% of Alight Capital Management LP's portfolio, making the stock its 27th largest position. Alight Capital Management LP's holdings in Caterpillar were worth $5,729,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also bought and sold shares of the stock. Align Financial LLC bought a new position in Caterpillar during the fourth quarter worth $11,814,000. Altshuler Shaham Ltd boosted its stake in Caterpillar by 407.5% during the fourth quarter. Altshuler Shaham Ltd now owns 3,172 shares of the industrial products company's stock worth $1,817,000 after acquiring an additional 2,547 shares in the last quarter. Freestone Grove Partners LP bought a new position in Caterpillar during the fourth quarter worth $90,670,000. Guggenheim Capital LLC boosted its stake in Caterpillar by 1.4% during the fourth quarter. Guggenheim Capital LLC now owns 53,927 shares of the industrial products company's stock worth $30,893,000 after acquiring an additional 746 shares in the last quarter. Finally, Caisse de depot et placement du Quebec lifted its stake in shares of Caterpillar by 12.3% in the fourth quarter. Caisse de depot et placement du Quebec now owns 424,849 shares of the industrial products company's stock valued at $243,383,000 after buying an additional 46,691 shares in the last quarter. 70.98% of the stock is owned by institutional investors.

Insider Buying and Selling

In other news, CAO William E. Schaupp sold 360 shares of the stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $906.00, for a total value of $326,160.00. Following the completion of the sale, the chief accounting officer owned 530 shares in the company, valued at $480,180. This represents a 40.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Anthony D. Fassino sold 16,283 shares of the stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the completion of the sale, the insider owned 46,041 shares of the company's stock, valued at approximately $42,210,388.80. This represents a 26.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 95,773 shares of company stock valued at $87,642,635 over the last 90 days. 0.33% of the stock is currently owned by company insiders.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: JPMorgan raised its price target on Caterpillar to $1,165 from $1,125 and kept an “overweight” rating, signaling continued confidence in the stock’s upside. MarketScreener
• Positive Sentiment: Articles highlighted Caterpillar as a blue-chip stock to own, helped by bullish market momentum as the Dow reached a new milestone. Zacks
• Positive Sentiment: Caterpillar recently increased its dividend, reinforcing management’s confidence in cash generation and making the stock more attractive to income investors. Yahoo Finance
• Positive Sentiment: Coverage also pointed to Caterpillar’s improving growth story, including a large AI-related backlog and rising demand in its power generation business, which supports a stronger long-term outlook. Yahoo Finance
• Neutral Sentiment: Several market recap pieces noted Caterpillar’s gains were helping lift the Dow to record highs, but these articles were more about broad index performance than a new company-specific catalyst. MSN

Caterpillar Stock Performance

Shares of CAT stock opened at $955.17 on Thursday. The firm has a 50-day moving average of $865.45 and a 200-day moving average of $735.73. The company has a market cap of $439.94 billion, a P/E ratio of 47.54, a P/E/G ratio of 1.87 and a beta of 1.59. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. Caterpillar Inc. has a one year low of $356.96 and a one year high of $975.64.

Caterpillar (NYSE:CAT - Get Free Report) last announced its 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. The company had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The firm's revenue for the quarter was up 22.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $4.25 earnings per share. Equities research analysts forecast that Caterpillar Inc. will post 24.62 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be issued a $1.63 dividend. This is an increase from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, July 20th. Caterpillar's dividend payout ratio is currently 30.06%.

Analysts Set New Price Targets

A number of research firms have weighed in on CAT. HSBC raised their price objective on shares of Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Barclays raised their price objective on shares of Caterpillar from $700.00 to $800.00 and gave the company an "equal weight" rating in a research note on Friday, May 1st. Daiwa Securities Group raised their price objective on shares of Caterpillar from $790.00 to $900.00 and gave the company a "neutral" rating in a research note on Friday, May 1st. Truist Financial set a $1,043.00 price objective on shares of Caterpillar in a research note on Friday, May 1st. Finally, DA Davidson raised their price objective on shares of Caterpillar from $650.00 to $845.00 and gave the company a "neutral" rating in a research note on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have given a Hold rating to the company's stock. According to MarketBeat, Caterpillar currently has an average rating of "Moderate Buy" and a consensus target price of $935.09.

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.

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