Fred Alger Management LLC Sells 19,209 Shares of Caterpillar Inc. $CAT

Key Points

• Fred Alger Management LLC reduced its Caterpillar stake by 19.2% in the fourth quarter, selling 19,209 shares and leaving it with 80,972 shares worth about $46.4 million.
• Caterpillar insiders also sold shares: CFO Andrew R. J. Bonfield and insider Lange Bob De together sold more than 39,000 shares on May 6, and insiders sold 95,773 shares worth $87.6 million in the last quarter.
• The company reported strong quarterly results and raised its dividend, beating earnings and revenue estimates for the latest quarter while increasing its quarterly payout to $1.63 per share. Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $933.27.

Fred Alger Management LLC cut its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 19.2% in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 80,972 shares of the industrial products company's stock after selling 19,209 shares during the period. Fred Alger Management LLC's holdings in Caterpillar were worth $46,386,000 at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. Torren Management LLC bought a new stake in Caterpillar in the fourth quarter worth $27,000. Frazier Financial Advisors LLC boosted its holdings 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 purchasing an additional 33 shares in the last quarter. IFS Advisors LLC bought a new stake in Caterpillar in the fourth quarter worth $31,000. Rialto Wealth Management LLC boosted its holdings 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 purchasing an additional 18 shares in the last quarter. Finally, Cornerstone Financial Management LLC bought a new stake in Caterpillar in the fourth quarter worth $32,000. 70.98% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, CFO Andrew R. J. Bonfield sold 15,674 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the sale, the chief financial officer owned 52,935 shares in the company, valued at approximately $48,631,913.85. This trade represents a 22.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Lange Bob De sold 24,222 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the completion of the sale, the insider owned 86,029 shares of the company's stock, valued at approximately $79,397,884.68. The trade was a 21.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 95,773 shares of company stock valued at $87,642,635 in the last quarter. 0.33% of the stock is currently owned by insiders.

Caterpillar Stock Up 1.4%

NYSE CAT opened at $946.71 on Wednesday. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The firm has a 50-day simple moving average of $860.76 and a 200 day simple moving average of $733.04. Caterpillar Inc. has a twelve month low of $356.96 and a twelve month high of $961.33. The stock has a market cap of $436.05 billion, a PE ratio of 47.12, a PEG ratio of 1.85 and a beta of 1.59.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results 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 net margin of 13.33% and a return on equity of 48.21%. The business had revenue of $17.42 billion during the quarter, compared to analysts' expectations of $16.53 billion. During the same quarter last year, the company earned $4.25 earnings per share. The firm's revenue was up 22.2% on a year-over-year basis. On average, research analysts forecast that Caterpillar Inc. will post 24.62 EPS for the current year.

Caterpillar Increases Dividend

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

Analyst Ratings Changes

A number of equities research analysts recently issued reports on CAT shares. Sanford C. Bernstein upped their price objective on shares of Caterpillar from $769.00 to $879.00 and gave the stock a "market perform" rating in a report on Friday, May 1st. Truist Financial set a $1,043.00 target price on shares of Caterpillar in a research report on Friday, May 1st. Oppenheimer set a $980.00 price objective on Caterpillar and gave the stock an "outperform" rating in a research report on Friday, May 1st. Weiss Ratings reissued a "buy (b-)" rating on shares of Caterpillar in a research report on Friday, May 8th. Finally, Bank of America boosted their price objective on Caterpillar from $930.00 to $989.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and nine have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $933.27.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts say Caterpillar stands out versus Komatsu thanks to stronger earnings momentum, rising growth targets, and better profitability, despite tariff pressure. Caterpillar vs. Komatsu: Which Heavy Equipment Stock is the Better Buy?
• Positive Sentiment: Coverage points to Caterpillar as a major driver of the Dow’s gains, reflecting strong investor demand for the stock. Dow rallies 488 points on gains in shares of JPMorgan Chase, Caterpillar
• Positive Sentiment: Recent commentary says CAT has surged on solid quarterly results, strong backlog, AI-driven power generation demand, and aggressive buybacks, supporting the bullish case. 2 Reasons to Watch CAT and 1 to Stay Cautious
• Positive Sentiment: Caterpillar’s dividend increase was highlighted as sustainable, reinforcing confidence in cash flow and shareholder returns. 3 Dividend Increases Investors Can Actually Trust
• Neutral Sentiment: Several articles argued that CAT remains a world-class industrial company and a long-term growth story, but these are mainly valuation and strategy discussions rather than new catalysts. Caterpillar: A World-Class Industrial At A World-Class Price Tag
• Neutral Sentiment: Commentary on CAT’s huge year-to-date move and how much upside remains is more about investor debate than a direct fundamental update. Up 300% YTD, How High Can CAT Stock Rally This Year?

About Caterpillar

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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