Caterpillar Inc. $CAT Stake Lowered by California State Teachers Retirement System

California State Teachers Retirement System trimmed its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 2.7% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 706,389 shares of the industrial products company's stock after selling 19,669 shares during the period. Caterpillar comprises approximately 0.5% of California State Teachers Retirement System's portfolio, making the stock its 27th biggest holding. California State Teachers Retirement System owned about 0.15% of Caterpillar worth $500,448,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently bought and sold shares of CAT. Lam Group Inc. acquired a new position in Caterpillar in the 1st quarter worth about $26,000. Torren Management LLC acquired a new stake in shares of Caterpillar during the 4th quarter valued at about $27,000. Frazier Financial Advisors LLC grew its stake in shares of Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $28,000 after buying an additional 33 shares in the last quarter. Cedar Mountain Advisors LLC increased its holdings in Caterpillar by 82.1% in the first quarter. Cedar Mountain Advisors LLC now owns 51 shares of the industrial products company's stock worth $36,000 after buying an additional 23 shares during the last quarter. Finally, Cornerstone Financial Management LLC bought a new position in Caterpillar during the fourth quarter valued at approximately $32,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Analyst Upgrades and Downgrades

CAT has been the subject of a number of analyst reports. Bank of America lifted their target price on shares of Caterpillar from $930.00 to $989.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Rothschild & Co Redburn raised their price target on shares of Caterpillar from $700.00 to $950.00 and gave the company a "neutral" rating in a report on Thursday, May 14th. Daiwa Securities Group lifted their price objective on shares of Caterpillar from $790.00 to $900.00 and gave the company a "neutral" rating in a research note on Friday, May 1st. Wells Fargo & Company increased their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 23rd. Finally, Sanford C. Bernstein raised their target price on Caterpillar from $769.00 to $879.00 and gave the company a "market perform" rating in a report on Friday, May 1st. Fourteen research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat, Caterpillar has an average rating of "Moderate Buy" and a consensus price target of $980.57.

Caterpillar Stock Down 3.6%

NYSE CAT opened at $841.67 on Wednesday. Caterpillar Inc. has a twelve month low of $405.46 and a twelve month high of $1,073.46. The stock has a market cap of $387.66 billion, a PE ratio of 41.89, a PEG ratio of 1.71 and a beta of 1.57. The firm has a 50-day simple moving average of $928.73 and a 200 day simple moving average of $808.93. 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 issued its quarterly 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 firm had revenue of $17.41 billion for the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company's quarterly revenue was up 22.2% compared to the same quarter last year. During the same period in the previous year, the company posted $4.25 earnings per share. On average, research analysts forecast that Caterpillar Inc. will post 24.87 EPS for the current year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be paid a $1.63 dividend. The ex-dividend date is Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. Caterpillar's dividend payout ratio is currently 32.45%.

Insiders Place Their Bets

In related news, CFO Andrew R. J. Bonfield sold 15,674 shares of the firm's stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the transaction, the chief financial officer directly owned 52,935 shares of the company's stock, valued at $48,631,913.85. This trade represents a 22.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Anthony D. Fassino sold 16,283 shares of Caterpillar stock in a transaction 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. This represents a 26.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 95,773 shares of company stock valued at $87,642,635 in the last ninety days. 0.33% of the stock is currently owned by insiders.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Earnings expectations are supportive. Zacks upgraded Caterpillar to Rank #2 (Buy), citing improving earnings prospects. The company is also viewed as having two factors that could support a quarterly earnings beat ahead of next week’s report. Caterpillar Earnings Expected to Grow
• Positive Sentiment: Strong recent fundamentals provide a cushion. Caterpillar’s latest reported quarter exceeded consensus estimates, with revenue rising 22.2% year over year and earnings per share reaching $5.54 versus the expected $4.65. Investors may be looking for this momentum to continue in the upcoming release.
• Neutral Sentiment: Investor attention remains high. Caterpillar is a heavily watched industrial stock, and analysts and investors are debating whether its powerful multiyear rally can continue. The company’s shares have gained substantially over five years, raising the importance of future earnings and cash-flow growth.
• Negative Sentiment: Valuation may be limiting further upside. Fair-value analysis is mixed: earnings multiples appear relatively reasonable, while a discounted-cash-flow estimate suggests the stock is approximately fairly valued. After its extended rally, the shares face a higher hurdle to justify additional gains. Caterpillar Stock Looks Slightly Above Fair Value
• Negative Sentiment: Analyst sentiment has softened. Erste Group Bank AG downgraded Caterpillar from “buy” to “hold,” adding pressure to the stock’s near-term outlook.
• Negative Sentiment: Rare-earth supply risks could increase costs or disrupt production. China’s tighter export controls on rare-earth materials used in motors, sensors and control systems may affect Caterpillar’s advanced equipment and force manufacturers to secure more expensive alternative supplies. Caterpillar Faces Rare Earth Squeeze

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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