Infrastructure Capital Advisors LLC Lowers Stock Holdings in Caterpillar Inc. $CAT

Key Points

• Infrastructure Capital Advisors LLC cut its Caterpillar stake by 67.3% in the first quarter, selling 2,086 shares and retaining 1,013 shares valued at approximately $718,000. Institutional investors and hedge funds collectively own 70.98% of CAT.
• Caterpillar reported strong quarterly results, with EPS of $5.54 beating estimates of $4.65 and revenue rising 22.2% year over year to $17.41 billion. The company also raised its quarterly dividend to $1.63, equivalent to a 0.7% annual yield.
• Despite a roughly doubled share price over the past year, valuation and volatility risks have increased: CAT trades at a P/E ratio of 43.48, insiders sold $87.6 million of stock over three months, and one bank downgraded the shares to “hold.” Analysts nonetheless maintain a “Moderate Buy” consensus with an average price target of $980.57.

Infrastructure Capital Advisors LLC reduced its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 67.3% in the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 1,013 shares of the industrial products company's stock after selling 2,086 shares during the quarter. Infrastructure Capital Advisors LLC's holdings in Caterpillar were worth $718,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently added to or reduced their stakes in the company. Axxcess Wealth Management LLC lifted its position in Caterpillar by 2.8% during the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock valued at $12,844,000 after buying an additional 604 shares in the last quarter. Juno Financial Group LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth $877,000. DSG Capital Advisors LLC purchased a new position in shares of Caterpillar in the 1st quarter valued at $1,226,000. Cornerstone Planning LLC acquired a new position in shares of Caterpillar during the 4th quarter valued at $4,517,000. Finally, Ticino Wealth purchased a new stake in Caterpillar during the 4th quarter worth $2,488,000. 70.98% of the stock is owned by institutional investors and hedge funds.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s stock has approximately doubled over the past year. Investors have been encouraged by strong operating momentum and expectations that demand from data-center construction and related infrastructure spending could support future equipment sales. Caterpillar Stock Is Up 100% in a Year
• Positive Sentiment: The company’s most recent earnings report provided a fundamental backdrop for the rally: Caterpillar exceeded analysts’ quarterly earnings and revenue estimates, while revenue increased 22.2% year over year. This suggests strong demand and operating leverage, although investors may now require continued earnings growth to justify the elevated share price.
• Neutral Sentiment: Caterpillar has become a highly watched or “trending” stock on Zacks, increasing visibility among investors. However, heightened attention can contribute to greater trading volatility and does not itself change the company’s earnings outlook. Caterpillar Is a Trending Stock
• Negative Sentiment: Erste Group Bank AG downgraded Caterpillar from “buy” to “hold.” The change likely reflects caution after the substantial run-up, with investors potentially reassessing risk-reward prospects at a historically high valuation. Finviz Caterpillar Listing
• Negative Sentiment: Investor Michael Burry’s reported short position in Caterpillar benefited during the July pullback, highlighting the presence of bearish positioning. The stock’s roughly 100% annual gain, elevated price-to-earnings ratio and recent decline make profit-taking and volatility risks more significant. Michael Burry’s Short Bets on Caterpillar

Caterpillar Price Performance

Shares of CAT opened at $873.54 on Tuesday. Caterpillar Inc. has a 12 month low of $405.46 and a 12 month high of $1,073.46. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. The stock has a fifty day moving average price of $929.10 and a 200 day moving average price of $807.20. The company has a market cap of $402.34 billion, a P/E ratio of 43.48, a PEG ratio of 1.74 and a beta of 1.57.

Caterpillar (NYSE:CAT - Get Free Report) last posted its earnings results 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 return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $17.41 billion for the quarter, compared to analysts' expectations of $16.53 billion. During the same period last year, the business posted $4.25 earnings per share. The firm's quarterly revenue was up 22.2% compared to the same quarter last year. On average, research analysts forecast that Caterpillar Inc. will post 24.87 earnings per share for the current year.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be given a $1.63 dividend. The ex-dividend date is Monday, July 20th. This represents a $6.52 annualized dividend and a yield of 0.7%. This is a boost from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's payout ratio is 32.45%.

Analyst Ratings Changes

Several equities research analysts recently issued reports on CAT shares. Evercore reissued an "outperform" rating and set a $1,103.00 price target on shares of Caterpillar in a research report on Monday, May 11th. Wolfe Research boosted their target price on shares of Caterpillar from $670.00 to $750.00 and gave the company an "outperform" rating in a research note on Tuesday, March 31st. Rothschild & Co Redburn increased their target price on shares of Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. Sanford C. Bernstein lifted their price target on shares of Caterpillar from $769.00 to $879.00 and gave the company a "market perform" rating in a report on Friday, May 1st. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Caterpillar in a research report on Friday, May 8th. Fourteen analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $980.57.

Insider Activity

In other Caterpillar news, insider Denise C. Johnson sold 12,605 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the transaction, the insider directly owned 49,825 shares of the company's stock, valued at $45,236,615.75. The trade was a 20.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Jason Kaiser sold 5,642 shares of the company's stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the completion of the transaction, the insider owned 9,594 shares of the company's stock, valued at approximately $8,471,789.82. This trade represents a 37.03% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 95,773 shares of company stock worth $87,642,635 over the last three months. Insiders own 0.33% of the company's stock.

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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