Caterpillar Inc. $CAT Stock Position Lowered by Westchester Capital Management Inc.

Key Points

• Westchester Capital Management trimmed its Caterpillar stake by 4.4% in the fourth quarter, but the stock still makes up 7.0% of its portfolio and remains its third-largest holding.
• Caterpillar posted strong quarterly results, with EPS of $5.54 and revenue of $17.42 billion, both above analyst expectations, while revenue rose 22.2% year over year.
• The company raised its quarterly dividend to $1.63 per share, boosting the annualized payout to $6.52 and extending its dividend-growth streak to 32 consecutive years.

Westchester Capital Management Inc. reduced its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 4.4% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 59,102 shares of the industrial products company's stock after selling 2,704 shares during the quarter. Caterpillar comprises 7.0% of Westchester Capital Management Inc.'s investment portfolio, making the stock its 3rd biggest position. Westchester Capital Management Inc.'s holdings in Caterpillar were worth $33,858,000 as of its most recent SEC filing.

Other institutional investors also recently modified their holdings of the company. Pacific Point Advisors LLC purchased a new stake in Caterpillar in the 4th quarter worth approximately $579,000. Brighton Jones LLC lifted its stake in Caterpillar by 51.5% in the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock worth $2,688,000 after purchasing an additional 2,519 shares in the last quarter. United Bank lifted its stake in Caterpillar by 108.5% in the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company's stock worth $1,585,000 after purchasing an additional 2,125 shares in the last quarter. Schnieders Capital Management LLC. lifted its stake in Caterpillar by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock worth $3,551,000 after purchasing an additional 347 shares in the last quarter. Finally, Alliancebernstein L.P. lifted its stake in Caterpillar by 6.5% in the 2nd quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company's stock worth $222,120,000 after purchasing an additional 34,846 shares in the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Caterpillar Price Performance

Shares of NYSE:CAT opened at $910.78 on Friday. The company's fifty day moving average price is $851.85 and its 200-day moving average price is $726.64. The firm has a market capitalization of $419.50 billion, a price-to-earnings ratio of 45.34, a PEG ratio of 1.77 and a beta of 1.59. Caterpillar Inc. has a one year low of $355.70 and a one year high of $946.83. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. The firm had revenue of $17.42 billion for the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business's revenue for the quarter was up 22.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $4.25 EPS. On average, equities research analysts anticipate that Caterpillar Inc. will post 24.69 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The firm 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 dividend of $1.63 per share. The ex-dividend date of this dividend is Monday, July 20th. This represents a $6.52 annualized dividend and a dividend yield of 0.7%. This is an increase from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's payout ratio is 30.06%.

Insider Activity at Caterpillar

In related news, insider Anthony D. Fassino sold 16,283 shares of the stock in a transaction on Monday, May 11th. The shares were sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the transaction, the insider owned 46,041 shares of the company's stock, valued at approximately $42,210,388.80. This trade represents a 26.13% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Denise C. Johnson sold 12,605 shares of the stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the transaction, the insider directly owned 49,825 shares in the company, valued at approximately $45,236,615.75. This represents a 20.19% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 95,773 shares of company stock worth $87,642,635 in the last 90 days. Corporate insiders own 0.33% of the company's stock.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar raised its quarterly dividend by 8% to $1.63 per share, extending its dividend-growth streak to 32 consecutive years and signaling confidence in cash generation and future returns to shareholders.
• Positive Sentiment: Analysts at Erste Group lifted FY2026 and FY2027 earnings estimates for Caterpillar, reflecting expectations for stronger profitability ahead.
• Positive Sentiment: Caterpillar was highlighted on Zacks’ “best momentum stocks” list, which can reinforce bullish trader interest and momentum buying.
• Positive Sentiment: Recent bullish commentary pointed to strong Q1 results, including 22% revenue growth and a backlog of $62.7 billion, suggesting healthy demand across Caterpillar’s core markets.
• Neutral Sentiment: Caterpillar and Austal announced a global value agreement, but the available details do not clearly indicate a material near-term financial impact for CAT. Austal and Caterpillar in Global Value Agreement
• Negative Sentiment: Some market commentary warned that Caterpillar’s recent run-up leaves the stock vulnerable to a reversal on valuation concerns after a sharp move higher.
• Negative Sentiment: The stock also recently pulled back from its year-to-date high, with technical traders citing a possible double-top pattern, which may be limiting near-term upside.

Analyst Ratings Changes

Several analysts have issued reports on the stock. Truist Financial set a $1,043.00 target price on shares of Caterpillar in a research note on Friday, May 1st. DA Davidson increased their target price 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. JPMorgan Chase & Co. increased their target price on shares of Caterpillar from $860.00 to $1,125.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. Bank of America increased their target price on shares of Caterpillar from $930.00 to $989.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Finally, Wells Fargo & Company increased their price target on shares of Caterpillar from $960.00 to $1,050.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $933.27.

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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