Hodges Capital Management Inc. Has $8.59 Million Holdings in Caterpillar Inc. $CAT

Key Points

• Hodges Capital Management cut its Caterpillar stake by 9.1% in the first quarter, leaving it with 12,125 shares worth about $8.59 million.
• Caterpillar continues to draw mostly bullish attention from analysts, with multiple firms raising price targets and the company reporting strong quarterly results, including EPS and revenue that beat estimates.
• Despite the positive outlook, the stock is facing some pressure from insider selling and a high-profile short position from Michael Burry, who argues the AI-driven rally may have pushed valuations too far.

Hodges Capital Management Inc. decreased its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 9.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 12,125 shares of the industrial products company's stock after selling 1,209 shares during the quarter. Hodges Capital Management Inc.'s holdings in Caterpillar were worth $8,590,000 at the end of the most recent reporting period.

Several other hedge funds have also recently bought and sold shares of CAT. Collaborative Fund Advisors LLC acquired a new position in shares of Caterpillar in the 1st quarter valued at approximately $439,000. Nvest Financial LLC increased its stake in Caterpillar by 17.1% in the first quarter. Nvest Financial LLC now owns 507 shares of the industrial products company's stock valued at $359,000 after acquiring an additional 74 shares during the last quarter. Planning Center Inc. raised its position in Caterpillar by 22.3% during the first quarter. Planning Center Inc. now owns 1,618 shares of the industrial products company's stock valued at $1,146,000 after purchasing an additional 295 shares in the last quarter. Kathmere Capital Management LLC raised its position in Caterpillar by 6.2% during the first quarter. Kathmere Capital Management LLC now owns 3,672 shares of the industrial products company's stock valued at $2,601,000 after purchasing an additional 216 shares in the last quarter. Finally, Abel Hall LLC lifted its stake in Caterpillar by 16.8% during the first quarter. Abel Hall LLC now owns 1,733 shares of the industrial products company's stock worth $1,228,000 after purchasing an additional 249 shares during the last quarter. 70.98% of the stock is owned by institutional investors.

Key Stories Impacting Caterpillar

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, reinforcing bullish sentiment around the stock’s earnings and growth outlook. Article Link
• Positive Sentiment: Several reports highlighted Caterpillar as a momentum, long-term, and “trending” stock, suggesting investor interest remains strong and could help keep shares elevated. Article Link
• Positive Sentiment: Analysts and commentators pointed to Caterpillar’s role in powering data centers and other AI-related infrastructure, a theme that has helped explain the stock’s strong run. Article Link
• Positive Sentiment: Caterpillar also received fresh praise for strong backlog, earnings growth, and long-term expansion plans, which supports the case for continued upside. Article Link
• Neutral Sentiment: Caterpillar announced a $5 million investment in Texas workforce training and manufacturing education, a positive long-term initiative but not likely a major near-term stock driver. Article Link
• Neutral Sentiment: Wall Street analyst coverage remains broadly optimistic, with multiple articles noting favorable average brokerage recommendations, though these do not always translate into reliable signals. Article Link
• Negative Sentiment: Michael Burry disclosed a first-ever short position in Caterpillar, arguing the stock’s AI-linked rally may have stretched valuation too far; that news is likely the main source of pressure on shares today. Article Link

Insider Buying and Selling

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

Caterpillar Stock Performance

Shares of CAT stock opened at $965.44 on Monday. The firm has a market capitalization of $444.67 billion, a price-to-earnings ratio of 48.06, a PEG ratio of 1.90 and a beta of 1.57. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. The business's 50-day moving average price is $918.32 and its 200-day moving average price is $770.29. Caterpillar Inc. has a 12 month low of $388.09 and a 12 month high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 $17.41 billion during the quarter, compared to analyst estimates of $16.53 billion. During the same quarter last year, the business earned $4.25 EPS. The firm's quarterly revenue was up 22.2% on a year-over-year basis. Equities research analysts forecast that Caterpillar Inc. will post 24.71 EPS for the current 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 paid a $1.63 dividend. This is a positive change 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 of this dividend is Monday, July 20th. Caterpillar's payout ratio is presently 30.06%.

Analyst Upgrades and Downgrades

CAT has been the topic of several recent analyst reports. Weiss Ratings reiterated a "buy (b-)" rating on shares of Caterpillar in a research note on Friday, May 8th. Citigroup raised their price objective on Caterpillar from $905.00 to $1,020.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Robert W. Baird boosted their target price on Caterpillar from $1,165.00 to $1,200.00 and gave the stock an "outperform" rating in a research note on Friday, June 26th. Bank of America increased their target price on shares of Caterpillar from $930.00 to $989.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Finally, HSBC lifted their price target on shares of Caterpillar from $850.00 to $1,100.00 in a report on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Caterpillar currently has a consensus rating of "Moderate Buy" and a consensus price target of $949.41.

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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