Heritage Investors Management Corp Sells 4,171 Shares of Caterpillar Inc. $CAT

Key Points

• Heritage Investors Management Corp trimmed its Caterpillar stake by 3.5% in the first quarter, selling 4,171 shares while still holding 116,396 shares worth about $82.5 million.
• Caterpillar reported strong first-quarter earnings, with EPS of $5.54 beating estimates and revenue of $17.41 billion topping forecasts, while sales rose 22.2% year over year.
• The company raised its quarterly dividend to $1.63 per share from $1.51, and analysts remain broadly positive, with several firms lifting price targets and the stock carrying a Moderate Buy consensus rating.

Heritage Investors Management Corp lowered its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 3.5% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 116,396 shares of the industrial products company's stock after selling 4,171 shares during the period. Caterpillar comprises approximately 2.5% of Heritage Investors Management Corp's investment portfolio, making the stock its 8th biggest position. Heritage Investors Management Corp's holdings in Caterpillar were worth $82,462,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of the company. Advisory Resource Group boosted its position in Caterpillar by 0.8% during the fourth quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company's stock worth $935,000 after purchasing an additional 13 shares in the last quarter. Sunbeam Capital Management LLC increased its position in shares of Caterpillar by 1.1% in the first quarter. Sunbeam Capital Management LLC now owns 1,164 shares of the industrial products company's stock valued at $825,000 after buying an additional 13 shares in the last quarter. Brandywine Oak Private Wealth LLC raised its stake in shares of Caterpillar by 2.6% during the 1st quarter. Brandywine Oak Private Wealth LLC now owns 506 shares of the industrial products company's stock worth $358,000 after buying an additional 13 shares during the period. Sylvest Advisors LLC lifted its position in shares of Caterpillar by 3.6% during the 1st quarter. Sylvest Advisors LLC now owns 377 shares of the industrial products company's stock valued at $267,000 after buying an additional 13 shares in the last quarter. Finally, Invst LLC lifted its position in shares of Caterpillar by 1.9% during the 4th quarter. Invst LLC now owns 753 shares of the industrial products company's stock valued at $431,000 after buying an additional 14 shares in the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, insider Anthony D. Fassino sold 16,283 shares of Caterpillar stock in a transaction that occurred on 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 transaction, the insider owned 46,041 shares in the company, valued at approximately $42,210,388.80. This trade represents a 26.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Jason Kaiser sold 5,642 shares of the business's stock in a transaction on Monday, May 4th. The stock was sold at an average price of $883.03, for a total value of $4,982,055.26. Following the transaction, the insider directly owned 9,594 shares in the company, valued at $8,471,789.82. This trade represents a 37.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is currently owned by insiders.

Caterpillar Trading Down 2.6%

Shares of CAT opened at $965.44 on Friday. Caterpillar Inc. has a 52-week low of $388.09 and a 52-week high of $1,073.46. The stock has a market cap of $444.67 billion, a PE ratio of 48.06, a price-to-earnings-growth ratio of 1.96 and a beta of 1.57. The firm's fifty day moving average is $915.19 and its two-hundred day moving average is $767.65. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. The business had revenue of $17.41 billion during the quarter, compared to analysts' expectations of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The company's quarterly revenue was up 22.2% compared to the same quarter last year. During the same period in the prior year, the business earned $4.25 earnings per share. Research analysts forecast that Caterpillar Inc. will post 24.66 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. Shareholders of record on Monday, July 20th will be issued a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's payout ratio is currently 30.06%.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Truist raised its price target on Caterpillar to $1,218 from $1,043 and kept a Buy rating, signaling confidence in further upside from current levels. Benzinga coverage of Truist rating update
• Positive Sentiment: Multiple research updates highlighted stronger earnings expectations, including Zacks lifting Q2 2028 estimates and reaffirming a Strong Buy view, which supports the stock’s long-term outlook. Zacks analyst coverage
• Positive Sentiment: Caterpillar announced an investment in Texas manufacturing workforce development, which could help address labor shortages and support future production capacity. PR Newswire article
• Neutral Sentiment: Several market commentary pieces pointed out that CAT remains a blue-chip industrial favorite, with strong backlog, Q1 growth, and inclusion in the Russell Top 50 Index supporting its recent run. Yahoo Finance article
• Negative Sentiment: Michael Burry disclosed a first-ever short position in Caterpillar, arguing the stock has become too expensive after a big AI-driven move, which is pressuring sentiment around CAT. Yahoo Finance article
• Negative Sentiment: Additional reports echoed Burry’s bearish bet and questioned whether Caterpillar’s valuation has outrun fundamentals, reinforcing downside pressure on the shares. IBTimes article

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. Robert W. Baird boosted their price target on shares of Caterpillar from $1,165.00 to $1,200.00 and gave the stock an "outperform" rating in a report on Friday, June 26th. Williams Trading set a $825.00 target price on shares of Caterpillar in a research report on Tuesday, March 10th. Citigroup boosted their target price on shares of Caterpillar from $905.00 to $1,020.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Truist Financial upped their price target on shares of Caterpillar from $1,043.00 to $1,218.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, Zacks Research raised shares of Caterpillar from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 8th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $949.41.

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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