Forum Financial Management LP Lowers Stock Holdings in Caterpillar Inc. $CAT

Key Points

• Forum Financial Management LP reduced its Caterpillar stake by 38.5% in the first quarter, selling 3,046 shares and leaving it with 4,868 shares valued at about $3.45 million.
• Caterpillar reported strong first-quarter results, with EPS of $5.54 beating estimates and revenue of $17.41 billion topping expectations, while revenue rose 22.2% year over year.
• The company raised its quarterly dividend to $1.63 per share from $1.51, and analysts remain generally positive with a consensus Moderate Buy rating and average price target of $941.45.

Forum Financial Management LP cut its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 38.5% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,868 shares of the industrial products company's stock after selling 3,046 shares during the quarter. Forum Financial Management LP's holdings in Caterpillar were worth $3,449,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently bought and sold shares of the company. Private Wealth Management Group LLC boosted its holdings in Caterpillar by 32.2% during the 1st quarter. Private Wealth Management Group LLC now owns 197 shares of the industrial products company's stock valued at $140,000 after acquiring an additional 48 shares during the period. Drucker Wealth 3.0 LLC increased its stake in Caterpillar by 5.8% during the first quarter. Drucker Wealth 3.0 LLC now owns 905 shares of the industrial products company's stock worth $641,000 after purchasing an additional 50 shares during the period. EWA LLC increased its stake in Caterpillar by 19.0% during the first quarter. EWA LLC now owns 1,064 shares of the industrial products company's stock worth $754,000 after purchasing an additional 170 shares during the period. Fairway Wealth LLC acquired a new stake in shares of Caterpillar during the first quarter worth about $472,000. Finally, Investment Planning Advisors Inc. purchased a new position in shares of Caterpillar in the first quarter valued at approximately $245,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Analyst Ratings Changes

Several brokerages recently weighed in on CAT. Zacks Research raised shares of Caterpillar from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 8th. Robert W. Baird upped their price objective on Caterpillar from $1,165.00 to $1,200.00 and gave the stock an "outperform" rating in a research report on Friday. Rothschild & Co Redburn increased their price objective on Caterpillar from $700.00 to $950.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Argus lifted their target price on Caterpillar from $820.00 to $990.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Finally, Wolfe Research boosted their target price on Caterpillar from $670.00 to $750.00 and gave the stock an "outperform" rating in a research note on Tuesday, March 31st. One investment 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 data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $941.45.

Caterpillar Trading Up 3.6%

NYSE CAT opened at $1,033.40 on Tuesday. Caterpillar Inc. has a 52 week low of $384.25 and a 52 week high of $1,057.07. The firm has a 50 day moving average of $902.63 and a two-hundred day moving average of $759.31. 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 stock has a market capitalization of $475.97 billion, a PE ratio of 51.44, a price-to-earnings-growth ratio of 1.97 and a beta of 1.59.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. The business had revenue of $17.41 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 company's revenue was up 22.2% on a year-over-year basis. During the same period last year, the business earned $4.25 EPS. As a group, research analysts expect that Caterpillar Inc. will post 24.66 EPS for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be paid a $1.63 dividend. This is a boost from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a yield of 0.6%. The ex-dividend date is Monday, July 20th. Caterpillar's payout ratio is 30.06%.

Insider Activity at Caterpillar

In other Caterpillar news, CAO William E. Schaupp sold 360 shares of Caterpillar stock in a transaction dated Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total transaction of $326,160.00. Following the completion of the sale, the chief accounting officer directly owned 530 shares of the company's stock, valued at $480,180. The trade was a 40.45% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Anthony D. Fassino sold 16,283 shares of the company's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $916.80, for a total value of $14,928,254.40. Following the transaction, the insider directly owned 46,041 shares of the company's stock, valued at approximately $42,210,388.80. This represents a 26.13% 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 three months. Company insiders own 0.33% of the company's stock.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research raised its Q3 EPS estimates for Caterpillar, reinforcing the view that earnings momentum may remain strong. Q3 EPS Estimates for Caterpillar Raised by Zacks Research
• Positive Sentiment: Coverage highlighting Caterpillar’s “unprecedented valuation” tied to the AI infrastructure buildout suggests investors are paying up for CAT’s exposure to data center, power, and heavy equipment demand. Caterpillar Hits Unprecedented Valuation Amid AI Infrastructure Surge
• Positive Sentiment: Analyst roundups continue to list Caterpillar among favored industrial names, implying the stock remains a preferred pick despite broader sector caution. Zacks Analyst Blog Highlights Caterpillar
• Neutral Sentiment: Industry commentary says the construction and mining equipment sector faces headwinds, but Caterpillar is still viewed as one of the names worth watching. 3 Construction & Mining Equipment Stocks Braving Industry Headwinds

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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