CCM Investment Advisers LLC Trims Position in Caterpillar Inc. $CAT

Key Points

• CCM Investment Advisers reduced its Caterpillar position by 4.9% in the first quarter, selling 2,509 shares and retaining 48,856 shares valued at approximately $34.6 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported stronger-than-expected quarterly results, with earnings of $5.54 per share and revenue of $17.41 billion, up 22.2% year over year. The company also raised its quarterly dividend to $1.63, or $6.52 annually.
• Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $966.29, though valuation and reliance on data-center-related demand remain concerns. Insiders sold $87.6 million of shares during the latest quarter.

CCM Investment Advisers LLC reduced its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 4.9% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 48,856 shares of the industrial products company's stock after selling 2,509 shares during the quarter. Caterpillar makes up about 3.3% of CCM Investment Advisers LLC's investment portfolio, making the stock its 4th biggest holding. CCM Investment Advisers LLC's holdings in Caterpillar were worth $34,613,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of CAT. Vanguard Group Inc. grew its position in shares of Caterpillar by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock worth $26,572,681,000 after acquiring an additional 442,164 shares in the last quarter. State Street Corp raised its position in shares of Caterpillar by 1.1% during the 4th quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock valued at $20,273,039,000 after acquiring an additional 385,204 shares in the last quarter. Geode Capital Management LLC lifted its stake in Caterpillar by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company's stock worth $6,072,572,000 after purchasing an additional 94,524 shares during the last quarter. Fisher Asset Management LLC boosted its holdings in Caterpillar by 0.6% in the fourth quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock worth $5,438,408,000 after purchasing an additional 54,069 shares during the period. Finally, Bank of America Corp DE increased its stake in Caterpillar by 16.0% during the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock valued at $3,860,457,000 after purchasing an additional 928,974 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Insider Transactions at Caterpillar

In other news, insider Lange Bob De sold 24,222 shares of the stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total value of $22,354,968.24. Following the completion of the transaction, the insider 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. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Denise C. Johnson sold 12,605 shares of Caterpillar stock in a transaction dated 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 sale, the insider owned 49,825 shares in the company, valued at approximately $45,236,615.75. This represents a 20.19% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 95,773 shares of company stock worth $87,642,635 over the last quarter. Insiders own 0.33% of the company's stock.

Caterpillar Trading Up 3.2%

Shares of NYSE:CAT opened at $807.88 on Friday. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. The company's 50-day moving average price is $925.74 and its 200 day moving average price is $811.49. The company has a market cap of $372.10 billion, a PE ratio of 40.21, a P/E/G ratio of 1.53 and a beta of 1.57. Caterpillar Inc. has a fifty-two week low of $405.46 and a fifty-two week high of $1,073.46.

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 $17.41 billion during the quarter, compared to analysts' expectations of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. Caterpillar's quarterly revenue was up 22.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $4.25 EPS. Sell-side analysts anticipate that Caterpillar Inc. will post 24.87 earnings per share for the current year.

Caterpillar Increases Dividend

The firm also recently disclosed 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 a positive change from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date of this dividend is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. Caterpillar's dividend payout ratio is currently 32.45%.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on CAT shares. Wells Fargo & Company raised their price target 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. JPMorgan Chase & Co. boosted their price objective on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a research report on Wednesday, June 17th. Oppenheimer raised their target price on shares of Caterpillar from $980.00 to $1,105.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. Rothschild & Co Redburn lifted their target price on Caterpillar from $700.00 to $950.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Finally, Jefferies Financial Group raised their price target on Caterpillar from $900.00 to $1,045.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Thirteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $966.29.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar announced up to $10 million for workforce development in Illinois, part of its broader five-year, $100 million Building the Future Workforce Initiative. The investment is intended to address manufacturing and technician shortages, supporting long-term operating capacity and regional growth. Caterpillar Invests in the Future of Manufacturing Talent in Illinois
• Positive Sentiment: Several investment articles remain bullish, arguing that Caterpillar’s recent decline could create an attractive entry point for long-term investors ahead of earnings. The company has also benefited from strong demand, with its latest reported quarter showing revenue growth and earnings above analyst expectations. Here's Why Caterpillar Is a Buy Before Earnings
• Neutral Sentiment: Wall Street is focused on Caterpillar’s second-quarter results, including key operating metrics such as sales, margins and segment performance. The earnings release could determine whether the recent demand strength offsets concerns about valuation and end-market risks. Unlocking Q2 Potential of Caterpillar
• Negative Sentiment: Robert W. Baird downgraded CAT from Outperform to Neutral and reduced its price target to $900 from $1,200. Analyst Mig Dobre cited growing backlash and uncertainty surrounding the data-center construction boom, which had helped drive enthusiasm for Caterpillar’s power-generation products. Baird Just Downgraded Caterpillar Stock
• Negative Sentiment: The downgrade intensified concerns that Caterpillar trades at a historically elevated valuation and could be vulnerable if AI-related infrastructure spending slows. Commentary also noted bearish positioning, including Michael Burry’s reported negative view of the stock.

Caterpillar Company 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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