Apella Capital LLC Buys 2,564 Shares of Caterpillar Inc. $CAT

Key Points

• Apella Capital LLC increased its Caterpillar stake by 67.4% in the first quarter, buying 2,564 additional shares to bring its total holdings to 6,367 shares worth about $4.51 million.
• Caterpillar reported strong quarterly results, with earnings per share of $5.54 beating estimates and revenue of $17.41 billion topping expectations, while revenue rose 22.2% year over year.
• The company also raised its quarterly dividend to $1.63 per share, and analysts currently rate the stock a Moderate Buy with a consensus target price of $939.86.

Apella Capital LLC grew its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 67.4% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 6,367 shares of the industrial products company's stock after purchasing an additional 2,564 shares during the period. Apella Capital LLC's holdings in Caterpillar were worth $4,511,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Wellington Management Group LLP boosted its position in Caterpillar by 3,949.8% during the 3rd quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company's stock worth $2,494,568,000 after buying an additional 5,098,964 shares during the period. Capital International Investors acquired a new position in shares of Caterpillar during the fourth quarter worth $1,225,317,000. Northwestern Mutual Wealth Management Co. grew its stake in shares of Caterpillar by 573.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company's stock worth $861,947,000 after purchasing an additional 1,281,087 shares during the last quarter. Bank of America Corp DE increased its holdings in Caterpillar by 16.0% in the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock valued at $3,860,457,000 after purchasing an additional 928,974 shares during the period. Finally, Cynosure Group LLC increased its holdings in 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 during the period. Institutional investors own 70.98% of the company's stock.

Insiders Place Their Bets

In other Caterpillar news, CAO William E. Schaupp sold 360 shares of the business's 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 transaction, the chief accounting officer directly owned 530 shares in the company, valued at $480,180. The trade was a 40.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the firm's stock in a transaction 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 completion of 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 SEC filing for this sale provides additional information. In the last quarter, insiders have sold 95,773 shares of company stock valued at $87,642,635. Company insiders own 0.33% of the company's stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is being boosted by a record backlog, AI-related power generation demand, and aggressive capital returns, which support the case for continued earnings strength. Caterpillar Soars But Analysts Remain Cautious
• Positive Sentiment: Wells Fargo reportedly raised its price recommendation on Caterpillar, reinforcing bullish sentiment around the stock’s dividend growth and long-term earnings power. Top 5 Blue Chip Stocks with Growing Dividends
• Positive Sentiment: Several writeups pointed to Caterpillar’s strong year-to-date and multi-year performance, suggesting investors are still re-rating the stock higher on expectations for continued growth. Caterpillar (CAT) Stock Near $984 After Big Rally Is There Still Upside Potential
• Neutral Sentiment: Articles comparing Caterpillar to other industrial and mining stocks are mostly informational and do not appear to add a fresh catalyst on their own. Unpacking Q1 Earnings: Caterpillar NYSE: CAT In The Context Of Other Heavy Machinery Stocks
• Neutral Sentiment: The Caterpillar Foundation’s $2.5 million initiative for America’s 250th anniversary is positive from a corporate social responsibility standpoint, but it is unlikely to materially affect near-term earnings. Caterpillar Foundation Announces $2.5 Million Initiative in Celebration of America's 250th Anniversary
• Negative Sentiment: Some coverage noted that analysts remain cautious after the stock’s big rally, implying valuation concerns and the possibility of upside slowing from here. Caterpillar Soars But Analysts Remain Cautious

Caterpillar Stock Up 5.9%

Shares of NYSE:CAT opened at $1,053.62 on Friday. The business's 50 day moving average is $892.87 and its 200 day moving average is $753.39. Caterpillar Inc. has a 12-month low of $373.04 and a 12-month high of $1,057.07. The stock has a market cap of $485.28 billion, a price-to-earnings ratio of 52.44, a PEG ratio of 1.96 and a beta of 1.59. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share 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 $17.41 billion for the quarter, compared to analysts' expectations of $16.53 billion. During the same period last year, the business earned $4.25 EPS. The business's revenue was up 22.2% on a year-over-year basis. On average, sell-side analysts forecast that Caterpillar Inc. will post 24.64 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

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

Analyst Ratings Changes

Several research analysts have commented on the company. UBS Group reaffirmed a "neutral" rating and set a $900.00 target price on shares of Caterpillar in a report on Tuesday, June 2nd. Weiss Ratings restated a "buy (b-)" rating on shares of Caterpillar in a research report on Friday, May 8th. Morgan Stanley set a $915.00 target price on shares of Caterpillar and gave the company an "equal weight" rating in a report on Friday, May 1st. Truist Financial set a $1,043.00 price objective on shares of Caterpillar in a research report on Friday, May 1st. Finally, Barclays lifted 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. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $939.86.

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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