Baer Investment Advisory LLC Makes New Investment in Caterpillar Inc. $CAT

Key Points

• Baer Investment Advisory LLC opened a new position in Caterpillar during the first quarter, buying 2,043 shares valued at about $1.45 million.
• Caterpillar reported better-than-expected quarterly results, with EPS of $5.54 versus estimates of $4.65 and revenue of $17.41 billion, up 22.2% year over year.
• The company also raised its quarterly dividend to $1.63 per share from $1.51, while analysts remain generally constructive with a consensus rating of Moderate Buy and a $949.41 average price target.

Baer Investment Advisory LLC acquired a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 2,043 shares of the industrial products company's stock, valued at approximately $1,447,000.

A number of other institutional investors and hedge funds have also recently modified their holdings of the company. Lam Group Inc. purchased a new stake in shares of Caterpillar during the 1st quarter worth approximately $26,000. Torren Management LLC acquired a new position in Caterpillar in the fourth quarter valued at $27,000. Frazier Financial Advisors LLC boosted its stake in Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $28,000 after acquiring an additional 33 shares in the last quarter. IFS Advisors LLC purchased a new stake in shares of Caterpillar in the 4th quarter valued at about $31,000. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Caterpillar in the 4th quarter valued at about $32,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Caterpillar Stock Up 0.2%

Caterpillar stock opened at $965.44 on Friday. Caterpillar Inc. has a fifty-two week low of $388.09 and a fifty-two week high of $1,073.46. The firm has a market capitalization of $444.67 billion, a price-to-earnings ratio of 48.06, a price-to-earnings-growth ratio of 1.90 and a beta of 1.57. The stock's fifty day moving average is $918.32 and its two-hundred day moving average is $769.03. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35.

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 analysts' consensus estimates of $4.65 by $0.89. The firm had revenue of $17.41 billion for the quarter, compared to analysts' expectations of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.Caterpillar's quarterly revenue was up 22.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $4.25 EPS. Analysts predict that Caterpillar Inc. will post 24.71 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared 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 dividend on an annualized basis and a yield of 0.7%. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date of this dividend is Monday, July 20th. Caterpillar's dividend payout ratio (DPR) is presently 30.06%.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Truist raised its price target on Caterpillar to $1,218 from $1,043 and kept a buy rating, reinforcing bullish sentiment around the stock’s earnings and growth outlook. Article Link
• Positive Sentiment: Several reports highlighted Caterpillar as a momentum, long-term, and “trending” stock, suggesting investor interest remains strong and could help keep shares elevated. Article Link
• Positive Sentiment: Analysts and commentators pointed to Caterpillar’s role in powering data centers and other AI-related infrastructure, a theme that has helped explain the stock’s strong run. Article Link
• Positive Sentiment: Caterpillar also received fresh praise for strong backlog, earnings growth, and long-term expansion plans, which supports the case for continued upside. Article Link
• Neutral Sentiment: Caterpillar announced a $5 million investment in Texas workforce training and manufacturing education, a positive long-term initiative but not likely a major near-term stock driver. Article Link
• Neutral Sentiment: Wall Street analyst coverage remains broadly optimistic, with multiple articles noting favorable average brokerage recommendations, though these do not always translate into reliable signals. Article Link
• Negative Sentiment: Michael Burry disclosed a first-ever short position in Caterpillar, arguing the stock’s AI-linked rally may have stretched valuation too far; that news is likely the main source of pressure on shares today. Article Link

Analyst Upgrades and Downgrades

CAT has been the subject of a number of research reports. Truist Financial boosted their price objective on Caterpillar from $1,043.00 to $1,218.00 and gave the company a "buy" rating in a research note on Thursday. Barclays raised their target price on shares of Caterpillar from $700.00 to $800.00 and gave the stock an "equal weight" rating in a research report on Friday, May 1st. Oppenheimer set a $980.00 price target on shares of Caterpillar and gave the company an "outperform" rating in a research report on Friday, May 1st. Zacks Research upgraded shares of Caterpillar from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 8th. Finally, Wall Street Zen raised Caterpillar from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $949.41.

Insider Activity at Caterpillar

In other news, CAO William E. Schaupp sold 360 shares of the firm's stock in a transaction dated Wednesday, May 13th. The stock was 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. This trade represents a 40.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Anthony D. Fassino sold 16,283 shares of the business's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $916.80, for a total value of $14,928,254.40. Following the transaction, the insider directly owned 46,041 shares in the company, valued at $42,210,388.80. This trade represents a 26.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 95,773 shares of company stock valued at $87,642,635 over the last three months. Insiders own 0.33% of the company's stock.

Caterpillar Company 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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