DB&C Advisors LLC Makes New Investment in Caterpillar Inc. $CAT

Key Points

• DB&C Advisors LLC initiated a new position in Caterpillar in the fourth quarter, buying 4,657 shares worth about $2.67 million. The stake now represents 3.3% of the firm’s holdings and is its 8th-largest position.
• Caterpillar reported a strong quarterly earnings beat, with EPS of $5.54 versus $4.65 expected and revenue of $17.42 billion, up 22.2% year over year. Analysts currently expect the company to earn 24.68 EPS for the full year.
• Despite bullish analyst sentiment and a consensus Moderate Buy rating, insiders have been selling shares recently. The stock also trades near its 52-week high, closing at $904.89 with a market value of $416.79 billion.

DB&C Advisors LLC purchased a new position in Caterpillar Inc. (NYSE:CAT - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 4,657 shares of the industrial products company's stock, valued at approximately $2,668,000. Caterpillar makes up 3.3% of DB&C Advisors LLC's holdings, making the stock its 8th biggest position.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Torren Management LLC purchased a new stake in Caterpillar in the fourth quarter worth about $27,000. Frazier Financial Advisors LLC increased its position in Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock worth $28,000 after buying an additional 33 shares in the last quarter. IFS Advisors LLC purchased a new stake in Caterpillar in the fourth quarter worth about $31,000. Rialto Wealth Management LLC increased its position in Caterpillar by 47.4% in the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company's stock worth $32,000 after buying an additional 18 shares in the last quarter. Finally, Noble Wealth Management PBC increased its position in Caterpillar by 140.0% in the fourth quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company's stock worth $34,000 after buying an additional 35 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Insider Activity

In related news, insider Denise C. Johnson sold 12,605 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO William E. Schaupp sold 360 shares of the firm's stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total value of $326,160.00. Following the sale, the chief accounting officer directly owned 530 shares of the company's stock, valued at $480,180. This represents a 40.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 95,773 shares of company stock worth $87,642,635 in the last three months. Corporate insiders own 0.33% of the company's stock.

Caterpillar Price Performance

NYSE:CAT opened at $904.89 on Friday. The firm has a market capitalization of $416.79 billion, a price-to-earnings ratio of 45.04, a PEG ratio of 1.78 and a beta of 1.59. Caterpillar Inc. has a 1 year low of $352.26 and a 1 year high of $946.83. The business has a 50 day simple moving average of $831.99 and a 200-day simple moving average of $714.41. 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 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm had revenue of $17.42 billion during the quarter, compared to analyst estimates of $16.53 billion. During the same period last year, the company earned $4.25 EPS. Caterpillar's quarterly revenue was up 22.2% compared to the same quarter last year. Equities analysts forecast that Caterpillar Inc. will post 24.68 EPS for the current year.

Caterpillar Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, May 19th. Investors of record on Monday, April 20th were paid a dividend of $1.51 per share. This represents a $6.04 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, April 20th. Caterpillar's dividend payout ratio (DPR) is currently 30.06%.

Analyst Ratings Changes

Several analysts recently issued reports on CAT shares. Morgan Stanley set a $915.00 target price on Caterpillar and gave the stock an "equal weight" rating in a research report on Friday, May 1st. UBS Group reiterated a "neutral" rating and set a $900.00 target price on shares of Caterpillar in a research report on Tuesday. Oppenheimer set a $980.00 target price on Caterpillar and gave the stock an "outperform" rating in a research report on Friday, May 1st. Evercore reissued an "outperform" rating and set a $1,103.00 price target on shares of Caterpillar in a research note on Monday, May 11th. Finally, Jefferies Financial Group increased their price target on Caterpillar from $900.00 to $1,045.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Sixteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $933.27.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is benefiting from strong demand tied to data center construction and rising power needs, with coverage highlighting record quarterly results and improving sentiment around its power and energy business. Data Center Power Demands Push This Dividend Aristocrat to All Time Highs
• Positive Sentiment: Analysts and commentators remain constructive on Caterpillar’s growth outlook, citing durable tailwinds from AI-related infrastructure spending and a bullish price target in the latest research note. Caterpillar Setting The Pace For Growth In Power And Energy
• Positive Sentiment: Trump administration tariff cuts on farm and construction equipment are being viewed as a margin boost for Caterpillar’s core products, which could support earnings and sentiment. Trump Just Gave Caterpillar Stock a Boost. What to Know.
• Positive Sentiment: Additional coverage framed Caterpillar as one of the stocks poised to benefit from lower equipment tariffs, reinforcing the recent bullish narrative. When Trump Cuts Tariffs on Farm and Construction Equipment, These 5 Stocks Win Big
• Neutral Sentiment: Several articles were more general or commentary-driven, including a decade-long return retrospective and broader construction-stocks roundups, so they are less likely to move the shares directly. If You Invested $1000 in Caterpillar a Decade Ago, This is How Much It'd Be Worth Now
• Neutral Sentiment: Non-fundamental items such as an unrelated garden-caterpillar story and a political donation tracker do not appear to have a direct impact on Caterpillar’s business outlook. New caterpillar that can 'send you to A&E' breeding rapidly in gardens

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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