Capital Group Private Client Services Inc. Purchases Shares of 6,512 Caterpillar Inc. $CAT

Key Points

• Capital Group Private Client Services initiated a new position in Caterpillar, buying 6,512 shares worth about $3.73 million in the fourth quarter.
• Caterpillar continues to attract heavy institutional interest, with 70.98% of shares held by hedge funds and other institutions, while several large investors also boosted their stakes.
• The stock has strong recent momentum: Caterpillar beat quarterly earnings and revenue estimates, and analysts remain bullish, with an average Moderate Buy rating and a target price around $933.

Capital Group Private Client Services Inc. purchased a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 6,512 shares of the industrial products company's stock, valued at approximately $3,731,000.

A number of other institutional investors and hedge funds have also made changes to their positions in CAT. Wellington Management Group LLP increased its position in shares of Caterpillar by 3,949.8% in the third quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company's stock valued at $2,494,568,000 after buying an additional 5,098,964 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position 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 valued at $861,947,000 after buying an additional 1,281,087 shares in the last quarter. Amundi increased its position in shares of Caterpillar by 24.3% in the third quarter. Amundi now owns 2,375,710 shares of the industrial products company's stock valued at $1,176,870,000 after buying an additional 464,036 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Caterpillar by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock valued at $26,572,681,000 after buying an additional 442,164 shares in the last quarter. Finally, Alphinity Investment Management Pty Ltd purchased a new stake in shares of Caterpillar during the fourth quarter worth approximately $252,204,000. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In other Caterpillar news, CAO William E. Schaupp sold 360 shares of the company's stock in a transaction on Wednesday, May 13th. The stock was 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 directly owned 530 shares in the company, valued at $480,180. This represents a 40.45% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Lange Bob De sold 24,222 shares of the company's stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total value of $22,354,968.24. Following the completion of the transaction, the insider directly owned 86,029 shares in the company, valued at approximately $79,397,884.68. This trade represents a 21.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 95,773 shares of company stock worth $87,642,635 over the last quarter. Corporate insiders own 0.33% of the company's stock.

Key Caterpillar News

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

Wall Street Analyst Weigh In

CAT has been the subject of several research reports. Bank of America boosted their price target on Caterpillar from $930.00 to $989.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Daiwa Securities Group boosted their price target on Caterpillar from $790.00 to $900.00 and gave the stock a "neutral" rating in a research report on Friday, May 1st. JPMorgan Chase & Co. boosted their price target on Caterpillar from $860.00 to $1,125.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. UBS Group reiterated a "neutral" rating and set a $900.00 price target on shares of Caterpillar in a research report on Tuesday, June 2nd. Finally, Wolfe Research boosted their price target on Caterpillar from $670.00 to $750.00 and gave the stock an "outperform" rating in a research report on Tuesday, March 31st. Sixteen research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $933.27.

Caterpillar Stock Up 0.1%

Shares of NYSE:CAT opened at $904.89 on Monday. 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 business has a fifty day moving average of $831.99 and a two-hundred day moving average of $715.57. The stock has a market cap of $416.79 billion, a P/E ratio of 45.04, a PEG ratio of 1.78 and a beta of 1.59. Caterpillar Inc. has a 52-week low of $352.26 and a 52-week high of $946.83.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (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 analysts' expectations of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm's quarterly revenue was up 22.2% on a year-over-year basis. During the same period in the prior year, the business earned $4.25 EPS. On average, research analysts expect that Caterpillar Inc. will post 24.68 earnings per share for the current year.

Caterpillar Announces Dividend

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

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.

Want to see what other hedge funds are holding CAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Caterpillar Inc. (NYSE:CAT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.