Graham Capital Management L.P. Buys New Holdings in Caterpillar Inc. $CAT

Key Points

• Graham Capital Management opened a new position in Caterpillar, buying 10,000 shares valued at about $5.73 million in the fourth quarter.
• Caterpillar reported strong quarterly results, with EPS of $5.54 and revenue of $17.42 billion, both beating expectations and rising 22.2% year over year.
• The company also raised its quarterly dividend to $1.63 per share from $1.51, while analysts maintain a Moderate Buy consensus with a target price of $933.27.

Graham Capital Management L.P. bought a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm bought 10,000 shares of the industrial products company's stock, valued at approximately $5,729,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in CAT. Torren Management LLC acquired a new position in Caterpillar in the fourth quarter valued at $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 valued at $28,000 after acquiring an additional 33 shares during the last quarter. IFS Advisors LLC acquired a new position in Caterpillar in the fourth quarter valued at $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 valued at $32,000 after acquiring an additional 18 shares during the last quarter. Finally, Cornerstone Financial Management LLC acquired a new position in Caterpillar in the fourth quarter valued at $32,000. Institutional investors and hedge funds own 70.98% of the company's stock.

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?

Caterpillar Trading Up 1.4%

NYSE:CAT opened at $946.71 on Wednesday. The business's 50-day moving average is $860.76 and its two-hundred day moving average is $733.04. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. Caterpillar Inc. has a 12 month low of $356.96 and a 12 month high of $961.33. The firm has a market capitalization of $436.05 billion, a PE ratio of 47.12, a price-to-earnings-growth ratio of 1.85 and a beta of 1.59.

Caterpillar (NYSE:CAT - Get Free Report) last announced 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. The company had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company's revenue was up 22.2% on a year-over-year basis. During the same period last year, the firm earned $4.25 earnings per share. Research analysts predict that Caterpillar Inc. will post 24.62 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be paid a dividend of $1.63 per share. 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%. The ex-dividend date is Monday, July 20th. Caterpillar's payout ratio is 30.06%.

Wall Street Analysts Forecast Growth

CAT has been the topic of a number of research analyst reports. Citigroup lifted their target price on Caterpillar from $905.00 to $1,020.00 and gave the company a "buy" rating in a report on Friday, May 1st. Zacks Research raised Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 8th. DA Davidson raised their price objective on Caterpillar from $650.00 to $845.00 and gave the company a "neutral" rating in a research report on Monday, May 4th. Barclays raised their price objective on Caterpillar from $700.00 to $800.00 and gave the company an "equal weight" rating in a research report on Friday, May 1st. Finally, Sanford C. Bernstein raised their price objective on Caterpillar from $769.00 to $879.00 and gave the company a "market perform" rating in a research report on Friday, May 1st. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat.com, Caterpillar currently has an average rating of "Moderate Buy" and a consensus target price of $933.27.

Insider Activity at Caterpillar

In other news, insider Anthony D. Fassino sold 16,283 shares of the firm's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the completion of the sale, the insider directly owned 46,041 shares in the company, valued at $42,210,388.80. This trade represents a 26.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the firm's 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 sale, the chief financial officer owned 52,935 shares of the company's stock, valued at $48,631,913.85. This represents a 22.85% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 95,773 shares of company stock valued at $87,642,635. 0.33% of the stock is currently owned by insiders.

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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