Caterpillar Inc. $CAT Shares Sold by Knights of Columbus Asset Advisors LLC

Key Points

• Knights of Columbus Asset Advisors LLC cut its Caterpillar stake by 9.8% in the fourth quarter, though it still held 22,117 shares worth about $12.7 million at quarter-end.
• Caterpillar reported strong quarterly results, with EPS of $5.54 and revenue of $17.42 billion, both above analyst expectations and up 22.2% from a year earlier.
• Analyst sentiment remains constructive: the stock has a Moderate Buy consensus with an average price target of $923.14, while recent reports from Jefferies and others raised targets and/or maintained positive ratings.

Knights of Columbus Asset Advisors LLC reduced its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 9.8% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 22,117 shares of the industrial products company's stock after selling 2,394 shares during the period. Knights of Columbus Asset Advisors LLC's holdings in Caterpillar were worth $12,670,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in Caterpillar by 1.0% in the 4th 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 during the period. Fisher Asset Management LLC raised its holdings in Caterpillar by 0.6% in the 4th quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock valued at $5,438,408,000 after buying an additional 54,069 shares during the period. Wellington Management Group LLP raised its holdings in Caterpillar by 3,949.8% in the 3rd 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 during the period. Bank of New York Mellon Corp raised its holdings in Caterpillar by 20.7% in the 3rd quarter. Bank of New York Mellon Corp now owns 3,553,930 shares of the industrial products company's stock valued at $1,695,757,000 after buying an additional 609,023 shares during the period. Finally, Legal & General Group Plc raised its holdings in Caterpillar by 2.2% in the 3rd quarter. Legal & General Group Plc now owns 2,802,068 shares of the industrial products company's stock valued at $1,337,007,000 after buying an additional 58,993 shares during the period. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Market coverage noted that Caterpillar flashed a buy signal as the S&P 500, Nasdaq and Russell 2000 hit new highs, reflecting broad strength in industrial and AI-related names. Dow Jones Futures Rise After S&P 500, Nasdaq Hit Highs; 5 AI Stocks In Buy Areas
• Positive Sentiment: Investors are focusing on a “hidden AI revenue stream” in Caterpillar’s financials: about $10.2 billion in generator sales to data centers last year, which supports the idea that CAT benefits from AI buildout even though it is not a pure-play AI stock. A $10.2 Billion Hidden AI Revenue Stream Most Investors Are Missing
• Neutral Sentiment: Another article discussed Caterpillar in the context of the Iran war and whether it is a buy, sell or hold, but it did not add a clear new catalyst for the stock. Is Caterpillar a Buy, Sell, or Hold Amid the Iran War?
• Neutral Sentiment: Clinch Resources’ purchase of a Caterpillar highwall miner is a small equipment-order headline that may support sentiment around CAT’s mining product line, but it is not likely to move the stock on its own. Clinch Resources acquires first Caterpillar highwall miner for West Virginia met coal operation

Caterpillar Stock Up 3.3%

CAT stock opened at $909.25 on Wednesday. The company's 50 day moving average price is $799.63 and its 200 day moving average price is $696.43. 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 Inc. has a fifty-two week low of $339.50 and a fifty-two week high of $931.35. The firm has a market capitalization of $418.79 billion, a price-to-earnings ratio of 45.26, a PEG ratio of 1.74 and a beta of 1.63.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The firm had revenue of $17.42 billion for the quarter, compared to analyst estimates of $16.53 billion. During the same period in the prior year, the firm earned $4.25 earnings per share. The business's quarterly revenue was up 22.2% compared to the same quarter last year. On average, equities research analysts anticipate that Caterpillar Inc. will post 24.67 EPS for the current fiscal year.

Caterpillar Announces Dividend

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

Wall Street Analyst Weigh In

Several brokerages recently issued reports on CAT. Sanford C. Bernstein boosted their price objective on shares of Caterpillar from $769.00 to $879.00 and gave the company a "market perform" rating in a report on Friday, May 1st. UBS Group reiterated a "neutral" rating and set a $677.00 price target on shares of Caterpillar in a research note on Monday, February 2nd. Jefferies Financial Group boosted their price target on shares of Caterpillar from $900.00 to $1,045.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Wall Street Zen upgraded shares of Caterpillar from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Finally, DA Davidson boosted their price target on shares of Caterpillar from $650.00 to $845.00 and gave the stock a "neutral" rating in a research note on Monday, May 4th. Sixteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $923.14.

Insider Activity

In related news, CFO Andrew R. J. Bonfield sold 15,674 shares of the company's stock in a transaction that occurred on 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 sale, the chief financial officer directly owned 52,935 shares in the company, valued at approximately $48,631,913.85. This represents a 22.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Anthony D. Fassino sold 16,283 shares of the company'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 transaction of $14,928,254.40. Following the sale, the insider owned 46,041 shares in the company, valued at $42,210,388.80. The trade was a 26.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 98,273 shares of company stock valued at $89,439,960. 0.33% of the stock is owned by corporate insiders.

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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