Caterpillar Inc. $CAT Stake Reduced by Busey Bank

Key Points

• Busey Bank trimmed its Caterpillar stake by 1.6% in the first quarter, selling 1,425 shares but still holding 90,325 shares valued at about $63.99 million.
• Wall Street remains broadly bullish on Caterpillar, with several analysts lifting price targets; the consensus rating is “Moderate Buy” and the average price target is $949.41.
• Caterpillar posted strong quarterly results and raised its dividend, beating earnings and revenue estimates with 22.2% revenue growth year over year, while increasing its quarterly payout to $1.63 from $1.51.

Busey Bank decreased its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 1.6% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 90,325 shares of the industrial products company's stock after selling 1,425 shares during the period. Caterpillar makes up 1.7% of Busey Bank's portfolio, making the stock its 17th biggest holding. Busey Bank's holdings in Caterpillar were worth $63,992,000 as of its most recent SEC filing.

Other hedge funds also recently made changes to their positions in the company. Axxcess Wealth Management LLC boosted its holdings in shares of Caterpillar by 2.8% during the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock worth $12,844,000 after purchasing an additional 604 shares during the period. Juno Financial Group LLC acquired a new position in Caterpillar in the 4th quarter valued at approximately $877,000. DSG Capital Advisors LLC purchased a new stake in Caterpillar in the 1st quarter worth approximately $1,226,000. Gotham Asset Management LLC boosted its stake in shares of Caterpillar by 19.1% during the 3rd quarter. Gotham Asset Management LLC now owns 116,589 shares of the industrial products company's stock valued at $55,630,000 after buying an additional 18,676 shares during the period. Finally, Cornerstone Planning LLC purchased a new position in shares of Caterpillar during the 4th quarter valued at $4,517,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently issued reports on CAT. Weiss Ratings reiterated a "buy (b-)" rating on shares of Caterpillar in a report on Friday, May 8th. Oppenheimer set a $980.00 target price on Caterpillar and gave the company an "outperform" rating in a research note on Friday, May 1st. Morgan Stanley set a $915.00 price target on Caterpillar and gave the stock an "equal weight" rating in a research note on Friday, May 1st. Evercore reiterated an "outperform" rating and set a $1,103.00 price target on shares of Caterpillar in a report on Monday, May 11th. Finally, Wells Fargo & Company boosted their price target on Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research note on Tuesday, June 23rd. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have given a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $949.41.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Truist raised its price target on Caterpillar to $1,218 from $1,043 and kept a buy rating, reinforcing bullish sentiment around the stock’s earnings and growth outlook. Article Link
• Positive Sentiment: Several reports highlighted Caterpillar as a momentum, long-term, and “trending” stock, suggesting investor interest remains strong and could help keep shares elevated. Article Link
• Positive Sentiment: Analysts and commentators pointed to Caterpillar’s role in powering data centers and other AI-related infrastructure, a theme that has helped explain the stock’s strong run. Article Link
• Positive Sentiment: Caterpillar also received fresh praise for strong backlog, earnings growth, and long-term expansion plans, which supports the case for continued upside. Article Link
• Neutral Sentiment: Caterpillar announced a $5 million investment in Texas workforce training and manufacturing education, a positive long-term initiative but not likely a major near-term stock driver. Article Link
• Neutral Sentiment: Wall Street analyst coverage remains broadly optimistic, with multiple articles noting favorable average brokerage recommendations, though these do not always translate into reliable signals. Article Link
• Negative Sentiment: Michael Burry disclosed a first-ever short position in Caterpillar, arguing the stock’s AI-linked rally may have stretched valuation too far; that news is likely the main source of pressure on shares today. Article Link

Insider Activity

In other news, CFO Andrew R. J. Bonfield sold 15,674 shares of the business's stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the sale, the chief financial officer directly owned 52,935 shares in the company, valued at approximately $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Lange Bob De sold 24,222 shares of the company's stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the sale, the insider directly owned 86,029 shares of the company's stock, valued at approximately $79,397,884.68. This represents a 21.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 95,773 shares of company stock valued at $87,642,635. Insiders own 0.33% of the company's stock.

Caterpillar Trading Up 0.2%

Caterpillar stock opened at $965.44 on Monday. 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 $444.67 billion, a price-to-earnings ratio of 48.06, a PEG ratio of 1.90 and a beta of 1.57. Caterpillar Inc. has a one year low of $388.09 and a one year high of $1,073.46. The company's fifty day moving average price is $918.32 and its two-hundred day moving average price is $770.29.

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, topping analysts' consensus estimates of $4.65 by $0.89. The company had revenue of $17.41 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 business's quarterly revenue was up 22.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $4.25 earnings per share. On average, analysts forecast that Caterpillar Inc. will post 24.71 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be issued a $1.63 dividend. This is an increase from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. This represents a $6.52 annualized dividend and a yield of 0.7%. Caterpillar's dividend payout ratio is presently 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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