Fifth Third Bancorp Acquires 87,164 Shares of Caterpillar Inc. $CAT

Key Points

• Fifth Third Bancorp increased its Caterpillar stake by 17.3% in the first quarter, buying 87,164 additional shares and bringing its total holding to 591,354 shares worth about $418.95 million.
• Wall Street sentiment remains mostly bullish, with several analysts raising price targets and the consensus rating sitting at “Moderate Buy,” even as some commentary warns about valuation and momentum risks.
• Caterpillar posted strong recent results and boosted its dividend, topping earnings and revenue estimates for the quarter and raising its quarterly payout to $1.63 per share from $1.51.

Fifth Third Bancorp raised its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 17.3% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 591,354 shares of the industrial products company's stock after acquiring an additional 87,164 shares during the period. Caterpillar makes up 0.8% of Fifth Third Bancorp's portfolio, making the stock its 25th biggest position. Fifth Third Bancorp owned approximately 0.13% of Caterpillar worth $418,950,000 as of its most recent filing with the Securities and Exchange Commission.

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

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is being highlighted as a way to gain exposure to the AI buildout, especially through demand tied to data center construction, which is helping bolster investor optimism. These Dividend Paying Stocks Offer Strong Exposure to AI Trends
• Positive Sentiment: Analyst/commentary pieces continue to frame Caterpillar as a stock with strong momentum and relative outperformance, supporting the bullish case for CAT. CAT Outperforms NVDA & Tech Sector, AI Data Center Demand Powers Growth
• Positive Sentiment: News that Caterpillar is opening an engineering design centre adds to the company’s investment and expansion story, which can be supportive for long-term growth expectations. Caterpillar Inc. opens engineering design centre
• Positive Sentiment: Reports of a multimillion-dollar global headquarters expansion in Las Colinas suggest continued capital investment and confidence in the business outlook. Caterpillar digs into new $34M HQ in Las Colinas
• Neutral Sentiment: Market commentary notes that Caterpillar remains a popular industrial stock to watch, but these list-style articles do not provide a clear new catalyst. Industrial Stocks To Consider - July 9th
• Neutral Sentiment: Another feature discusses Caterpillar among “calls of the day,” indicating ongoing trader attention rather than a specific fundamental update. Calls of the day: AbbVie, Caterpillar, Marriott, Lamar Advertising and PepsiCo
• Negative Sentiment: Some coverage says CAT has dipped while the broader market rose, and other commentary warns the stock may be losing momentum as investors weigh valuation, tariffs, and execution risks. Caterpillar (CAT) Stock Dips While Market Gains: Key Facts
• Negative Sentiment: One bearish note suggests the AI rally may be fading, with valuation concerns making investors more cautious about further upside. CAT Stock Heads For Second Weekly Loss: Is Caterpillar's AI Rally Fading?

Insider Buying and Selling

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 transaction, the insider owned 49,825 shares in the company, valued at $45,236,615.75. This trade represents a 20.19% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of Caterpillar stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the completion of the transaction, the chief financial officer directly owned 52,935 shares in the company, valued at $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 95,773 shares of company stock valued at $87,642,635 over the last 90 days. 0.33% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on CAT shares. Robert W. Baird boosted their price target on Caterpillar from $1,165.00 to $1,200.00 and gave the stock an "outperform" rating in a research note on Friday, June 26th. Zacks Research raised Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 8th. Jefferies Financial Group boosted their target price on shares of Caterpillar from $900.00 to $1,045.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Wall Street Zen upgraded Caterpillar from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Finally, 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 report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $970.81.

Caterpillar Trading Up 1.5%

NYSE:CAT traded up $14.03 on Friday, reaching $952.42. The company's stock had a trading volume of 1,957,575 shares, compared to its average volume of 3,658,716. Caterpillar Inc. has a 12-month low of $401.70 and a 12-month high of $1,073.46. The stock has a 50 day moving average price of $930.83 and a 200 day moving average price of $782.09. The firm has a market cap of $438.68 billion, a price-to-earnings ratio of 47.41, a price-to-earnings-growth ratio of 1.88 and a beta of 1.57. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data 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. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The firm had revenue of $17.41 billion for the quarter, compared to analyst estimates of $16.53 billion. During the same period in the prior year, the business posted $4.25 EPS. The business's revenue for the quarter was up 22.2% compared to the same quarter last year. On average, equities analysts anticipate that Caterpillar Inc. will post 24.71 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a $1.63 dividend. The ex-dividend date of this dividend is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.7%. This is a boost from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's payout ratio is currently 30.06%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.