BNP Paribas Grows Stake in Caterpillar Inc. $CAT

Key Points

• BNP Paribas increased its Caterpillar stake by 72.3% in the fourth quarter, ending with 9,799 shares valued at about $5.6 million.
• Caterpillar reported strong quarterly results, with earnings of $5.54 per share versus a $4.65 estimate and revenue of $17.42 billion, up 22.2% year over year.
• Analysts remain broadly positive on CAT, with a Moderate Buy consensus and an average price target of $923.14, while the stock recently traded near $865.95.

BNP Paribas raised its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 72.3% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 9,799 shares of the industrial products company's stock after acquiring an additional 4,113 shares during the quarter. BNP Paribas' holdings in Caterpillar were worth $5,628,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors also recently modified their holdings of CAT. Torren Management LLC purchased a new stake in shares of Caterpillar during the 4th quarter valued at approximately $27,000. Frazier Financial Advisors LLC increased its holdings 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 acquiring an additional 33 shares during the period. IFS Advisors LLC bought a new stake in Caterpillar during the 4th quarter worth approximately $31,000. Rialto Wealth Management LLC increased its holdings 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 acquiring an additional 18 shares during the period. Finally, Noble Wealth Management PBC increased its holdings 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 acquiring an additional 35 shares during the period. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at Caterpillar

In other news, insider Anthony D. Fassino sold 16,283 shares of the firm's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $916.80, for a total value of $14,928,254.40. Following the completion of the sale, the insider directly owned 46,041 shares of the company's stock, valued at approximately $42,210,388.80. This trade represents a 26.13% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, 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 transaction of $14,399,860.54. Following the transaction, the chief financial officer directly owned 52,935 shares of the company's stock, valued at approximately $48,631,913.85. This trade represents a 22.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 98,273 shares of company stock worth $89,439,960. 0.33% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on CAT shares. Rothschild & Co Redburn increased their price target on shares of Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. Argus increased their price target on shares of Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Williams Trading set a $825.00 price target on shares of Caterpillar in a report on Tuesday, March 10th. Wells Fargo & Company increased their price target on shares of Caterpillar from $960.00 to $1,050.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. Finally, Daiwa Securities Group increased their price target on shares of Caterpillar from $790.00 to $900.00 and gave the stock a "neutral" rating in a report on Friday, May 1st. Sixteen investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, Caterpillar currently has a consensus rating of "Moderate Buy" and a consensus price target of $923.14.

Caterpillar Trading Down 1.1%

Shares of CAT opened at $865.95 on Tuesday. The stock has a market capitalization of $398.85 billion, a P/E ratio of 43.10, a PEG ratio of 1.73 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. The firm has a fifty day simple moving average of $814.65 and a two-hundred day simple moving average of $705.34. Caterpillar Inc. has a twelve month low of $339.50 and a twelve month high of $931.35.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings results 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 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 analysts' expectations of $16.53 billion. During the same quarter in the prior year, the company posted $4.25 EPS. The firm's revenue for the quarter was up 22.2% compared to the same quarter last year. On average, research analysts anticipate that Caterpillar Inc. will post 24.67 EPS for the current year.

Caterpillar Announces Dividend

The business also recently announced 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 of this dividend was Monday, April 20th. Caterpillar's dividend payout ratio (DPR) is currently 30.06%.

About Caterpillar

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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