Gould Capital LLC Has $3.48 Million Holdings in Caterpillar Inc. $CAT

Gould Capital LLC reduced its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 37.7% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 4,919 shares of the industrial products company's stock after selling 2,972 shares during the period. Caterpillar makes up approximately 2.1% of Gould Capital LLC's investment portfolio, making the stock its 13th biggest position. Gould Capital LLC's holdings in Caterpillar were worth $3,485,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. Diamant Asset Management Inc. grew its holdings in shares of Caterpillar by 68,427.2% during the 1st quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after purchasing an additional 3,136,020 shares in the last quarter. Capital International Investors acquired a new stake in Caterpillar during the fourth quarter worth about $1,225,317,000. Northwestern Mutual Wealth Management Co. increased its holdings in Caterpillar by 573.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company's stock valued at $861,947,000 after buying an additional 1,281,087 shares during the period. Bank of America Corp DE raised its position in shares of Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock valued at $3,860,457,000 after buying an additional 928,974 shares in the last quarter. Finally, Cynosure Group LLC boosted its position in shares of Caterpillar by 8,359.6% during the 4th quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company's stock worth $294,314,000 after acquiring an additional 507,681 shares in the last quarter. Institutional investors own 70.98% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Erste Group Bank cut Caterpillar from a "buy" rating to a "hold" rating in a research note on Monday. Daiwa Securities Group upped their price objective on Caterpillar from $790.00 to $900.00 and gave the stock a "neutral" rating in a research report on Friday, May 1st. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Caterpillar in a research note on Friday, May 8th. Robert W. Baird set a $900.00 target price on Caterpillar in a research report on Wednesday. Finally, Oppenheimer boosted their target price on Caterpillar from $980.00 to $1,105.00 and gave the stock an "outperform" rating in a research note on Monday, July 13th. Fourteen analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $966.29.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Earnings expectations are supportive. Zacks upgraded Caterpillar to Rank #2 (Buy), citing improving earnings prospects. The company is also viewed as having two factors that could support a quarterly earnings beat ahead of next week’s report. Caterpillar Earnings Expected to Grow
• Positive Sentiment: Strong recent fundamentals provide a cushion. Caterpillar’s latest reported quarter exceeded consensus estimates, with revenue rising 22.2% year over year and earnings per share reaching $5.54 versus the expected $4.65. Investors may be looking for this momentum to continue in the upcoming release.
• Neutral Sentiment: Investor attention remains high. Caterpillar is a heavily watched industrial stock, and analysts and investors are debating whether its powerful multiyear rally can continue. The company’s shares have gained substantially over five years, raising the importance of future earnings and cash-flow growth.
• Negative Sentiment: Valuation may be limiting further upside. Fair-value analysis is mixed: earnings multiples appear relatively reasonable, while a discounted-cash-flow estimate suggests the stock is approximately fairly valued. After its extended rally, the shares face a higher hurdle to justify additional gains. Caterpillar Stock Looks Slightly Above Fair Value
• Negative Sentiment: Analyst sentiment has softened. Erste Group Bank AG downgraded Caterpillar from “buy” to “hold,” adding pressure to the stock’s near-term outlook.
• Negative Sentiment: Rare-earth supply risks could increase costs or disrupt production. China’s tighter export controls on rare-earth materials used in motors, sensors and control systems may affect Caterpillar’s advanced equipment and force manufacturers to secure more expensive alternative supplies. Caterpillar Faces Rare Earth Squeeze

Caterpillar Stock Down 3.6%

Shares of CAT opened at $841.67 on Wednesday. The stock has a market capitalization of $387.66 billion, a price-to-earnings ratio of 41.89, a PEG ratio of 1.71 and a beta of 1.57. Caterpillar Inc. has a 52 week low of $405.46 and a 52 week high of $1,073.46. 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 stock has a fifty day moving average of $928.73 and a 200-day moving average of $808.93.

Caterpillar (NYSE:CAT - Get Free Report) last issued its 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 business had revenue of $17.41 billion during the quarter, compared to analysts' expectations of $16.53 billion. During the same quarter in the prior year, the firm earned $4.25 EPS. The business's revenue for the quarter was up 22.2% compared to the same quarter last year. As a group, sell-side analysts anticipate that Caterpillar Inc. will post 24.87 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be issued a $1.63 dividend. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. Caterpillar's dividend payout ratio (DPR) is 32.45%.

Insider Activity

In other Caterpillar news, insider Denise C. Johnson sold 12,605 shares of the company's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the transaction, the insider directly owned 49,825 shares in the company, valued at approximately $45,236,615.75. This represents a 20.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of Caterpillar stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the transaction, 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 position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 95,773 shares of company stock worth $87,642,635. Company insiders own 0.33% of the company's stock.

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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