Foster & Motley Inc. Sells 1,046 Shares of Caterpillar Inc. $CAT

Key Points

• Foster & Motley Inc. reduced its Caterpillar stake by 6.7% in the first quarter, selling 1,046 shares and ending with 14,481 shares valued at about $10.3 million.
• Caterpillar reported better-than-expected quarterly results, with EPS of $5.54 versus $4.65 expected and revenue of $17.41 billion, up 22.2% year over year.
• The company also raised its quarterly dividend to $1.63 per share from $1.51, while analysts remain generally positive with an average rating of “Moderate Buy” and an average price target of $939.86.

Foster & Motley Inc. cut its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 6.7% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 14,481 shares of the industrial products company's stock after selling 1,046 shares during the period. Foster & Motley Inc.'s holdings in Caterpillar were worth $10,259,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Pacific Point Advisors LLC purchased a new position in shares of Caterpillar during the fourth quarter valued at approximately $579,000. Brighton Jones LLC raised its holdings in shares of Caterpillar by 51.5% in the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock worth $2,688,000 after buying an additional 2,519 shares during the period. United Bank lifted its stake in shares of Caterpillar by 108.5% during the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company's stock worth $1,585,000 after acquiring an additional 2,125 shares during the last quarter. Schnieders Capital Management LLC. boosted its holdings in Caterpillar by 3.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock valued at $3,551,000 after acquiring an additional 347 shares during the period. Finally, Alliancebernstein L.P. boosted its holdings in Caterpillar by 6.5% during the 2nd quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company's stock valued at $222,120,000 after acquiring an additional 34,846 shares during the period. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Price Performance

CAT opened at $1,053.62 on Friday. The company has a market capitalization of $485.28 billion, a price-to-earnings ratio of 52.44, a PEG ratio of 1.96 and a beta of 1.59. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. Caterpillar Inc. has a 12-month low of $373.04 and a 12-month high of $1,057.07. The business's fifty day simple moving average is $892.87 and its 200-day simple moving average is $753.39.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, beating the consensus estimate 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 $17.41 billion during the quarter, compared to the consensus estimate of $16.53 billion. During the same period in the previous year, the company posted $4.25 earnings per share. The firm's quarterly revenue was up 22.2% on a year-over-year basis. On average, equities research analysts anticipate that Caterpillar Inc. will post 24.64 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

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

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the company. 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. Jefferies Financial Group upped their price target on shares of Caterpillar from $900.00 to $1,045.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Wolfe Research raised their price target on shares of Caterpillar from $670.00 to $750.00 and gave the stock an "outperform" rating in a research note on Tuesday, March 31st. Oppenheimer set a $980.00 price objective on shares of Caterpillar and gave the company an "outperform" rating in a report on Friday, May 1st. Finally, Zacks Research raised shares of Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 8th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have given a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $939.86.

Insider Transactions at Caterpillar

In related news, insider Lange Bob De sold 24,222 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The shares were 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 $79,397,884.68. The trade was a 21.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Anthony D. Fassino sold 16,283 shares of the company's stock in a transaction on 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 sale, the insider owned 46,041 shares of the company's stock, valued at approximately $42,210,388.80. This represents a 26.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 95,773 shares of company stock worth $87,642,635. 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: Caterpillar is being boosted by a record backlog, AI-related power generation demand, and aggressive capital returns, which support the case for continued earnings strength. Caterpillar Soars But Analysts Remain Cautious
• Positive Sentiment: Wells Fargo reportedly raised its price recommendation on Caterpillar, reinforcing bullish sentiment around the stock’s dividend growth and long-term earnings power. Top 5 Blue Chip Stocks with Growing Dividends
• Positive Sentiment: Several writeups pointed to Caterpillar’s strong year-to-date and multi-year performance, suggesting investors are still re-rating the stock higher on expectations for continued growth. Caterpillar (CAT) Stock Near $984 After Big Rally Is There Still Upside Potential
• Neutral Sentiment: Articles comparing Caterpillar to other industrial and mining stocks are mostly informational and do not appear to add a fresh catalyst on their own. Unpacking Q1 Earnings: Caterpillar NYSE: CAT In The Context Of Other Heavy Machinery Stocks
• Neutral Sentiment: The Caterpillar Foundation’s $2.5 million initiative for America’s 250th anniversary is positive from a corporate social responsibility standpoint, but it is unlikely to materially affect near-term earnings. Caterpillar Foundation Announces $2.5 Million Initiative in Celebration of America's 250th Anniversary
• Negative Sentiment: Some coverage noted that analysts remain cautious after the stock’s big rally, implying valuation concerns and the possibility of upside slowing from here. Caterpillar Soars But Analysts Remain Cautious

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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