Caterpillar Inc. $CAT Stake Increased by Daiwa Securities Group Inc.

Key Points

• Daiwa Securities Group Inc. increased its Caterpillar stake by 3.2% in the fourth quarter, adding 5,300 shares to bring its total to 171,467 shares worth about $98.2 million.
• Wall Street sentiment on Caterpillar remains positive, with analysts issuing several higher price targets; the stock currently carries a Moderate Buy consensus and an average target price of $933.27.
• Caterpillar posted strong quarterly results, with EPS of $5.54 and revenue of $17.42 billion, both above estimates, while also paying a quarterly dividend of $1.51 per share.

Daiwa Securities Group Inc. grew its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 3.2% in the fourth quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 171,467 shares of the industrial products company's stock after purchasing an additional 5,300 shares during the period. Daiwa Securities Group Inc.'s holdings in Caterpillar were worth $98,229,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the business. Plancorp LLC lifted its holdings in shares of Caterpillar by 0.5% in the fourth quarter. Plancorp LLC now owns 2,777 shares of the industrial products company's stock valued at $1,591,000 after purchasing an additional 15 shares in the last quarter. BlueStem Wealth Partners LLC increased its stake in shares of Caterpillar by 1.3% in the fourth quarter. BlueStem Wealth Partners LLC now owns 1,192 shares of the industrial products company's stock worth $683,000 after acquiring an additional 15 shares during the last quarter. KDT Advisors LLC increased its stake in shares of Caterpillar by 2.3% in the fourth quarter. KDT Advisors LLC now owns 657 shares of the industrial products company's stock worth $376,000 after acquiring an additional 15 shares during the last quarter. CFO4Life Group LLC increased its stake in shares of Caterpillar by 2.5% in the fourth quarter. CFO4Life Group LLC now owns 626 shares of the industrial products company's stock worth $359,000 after acquiring an additional 15 shares during the last quarter. Finally, Sandy Cove Advisors LLC increased its stake in shares of Caterpillar by 1.2% in the fourth quarter. Sandy Cove Advisors LLC now owns 1,279 shares of the industrial products company's stock worth $733,000 after acquiring an additional 15 shares during the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Wall Street Analyst Weigh In

CAT has been the topic of a number of research reports. Wells Fargo & Company upped their price target on shares of Caterpillar from $960.00 to $1,050.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. Williams Trading set a $825.00 price target on shares of Caterpillar in a research note on Tuesday, March 10th. Argus upped their price target on shares of Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Wall Street Zen raised shares of Caterpillar from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Finally, Sanford C. Bernstein upped their price target on shares of Caterpillar from $769.00 to $879.00 and gave the stock a "market perform" rating in a research note on Friday, May 1st. Sixteen 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 price target of $933.27.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Tariff relief on farm and construction equipment could lower input costs and improve Caterpillar’s profitability, making the stock more attractive to investors. Trump Just Gave Caterpillar Stock a Boost. What to Know.
• Positive Sentiment: Market commentary suggests Caterpillar is among the equipment makers that could benefit most from the tariff cuts, reinforcing the bullish case for CAT shares. When Trump Cuts Tariffs on Farm and Construction Equipment, These 5 Stocks Win Big
• Neutral Sentiment: Coverage of Caterpillar’s BEPU electric drivetrain effort highlights the company’s long-term electrification strategy, but it appears to be more of a future-growth theme than a near-term stock driver. Caterpillar BEPU makes going electric as easy as swapping an engine
• Neutral Sentiment: General industry roundups and market coverage mention Caterpillar among construction stocks to watch, but they do not provide a new company-specific catalyst. Construction Stocks To Consider - June 1st
• Neutral Sentiment: Broader market reporting noted CAT rising alongside the Dow, but this reflects general risk-on sentiment rather than a separate fundamental development. Dow moves higher as shares of Caterpillar climb

Insider Activity

In other news, insider Denise C. Johnson sold 12,605 shares of the firm's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $907.91, for a total value of $11,444,205.55. Following the sale, the insider directly owned 49,825 shares of the company's stock, valued at approximately $45,236,615.75. This trade represents a 20.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Jason Kaiser sold 5,642 shares of the firm's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $883.03, for a total value of $4,982,055.26. Following the completion of the sale, the insider directly owned 9,594 shares in the company, valued at approximately $8,471,789.82. This represents a 37.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 95,773 shares of company stock valued at $87,642,635. Corporate insiders own 0.33% of the company's stock.

Caterpillar Trading Up 1.6%

Caterpillar stock opened at $940.91 on Friday. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. The company has a market capitalization of $433.37 billion, a price-to-earnings ratio of 46.83, a PEG ratio of 1.83 and a beta of 1.59. Caterpillar Inc. has a one year low of $345.85 and a one year high of $946.83. The company's fifty day moving average price is $828.26 and its two-hundred day moving average price is $713.07.

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

Caterpillar Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th were given a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend 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.

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