King Luther Capital Management Corp Grows Stake in Caterpillar Inc. $CAT

Key Points

• King Luther Capital Management boosted its Caterpillar stake by 76.3% in the fourth quarter, while several other major institutional investors also increased holdings. Hedge funds and other institutions now own 70.98% of Caterpillar shares.
• Caterpillar posted strong quarterly results, reporting EPS of $5.54 versus estimates of $4.65 and revenue of $17.42 billion, up 22.2% year over year. Analysts still expect the company to earn 24.67 EPS for the full year.
• Analyst sentiment remains constructive, with multiple firms raising price targets and the stock carrying a consensus “Moderate Buy” rating. Meanwhile, insiders have sold shares recently, including CFO Andrew R. J. Bonfield and insider Jason Kaiser.

King Luther Capital Management Corp grew its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 76.3% during the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 32,631 shares of the industrial products company's stock after acquiring an additional 14,125 shares during the quarter. King Luther Capital Management Corp's holdings in Caterpillar were worth $18,694,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the business. Vanguard Group Inc. increased its holdings in shares of Caterpillar by 1.0% in the 4th quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock valued at $26,572,681,000 after acquiring an additional 442,164 shares during the last quarter. Fisher Asset Management LLC grew its stake in Caterpillar by 0.6% during the 4th quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock worth $5,438,408,000 after buying an additional 54,069 shares during the last quarter. Wellington Management Group LLP grew its stake in Caterpillar by 3,949.8% during the 3rd quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company's stock worth $2,494,568,000 after buying an additional 5,098,964 shares during the last quarter. Bank of New York Mellon Corp grew its stake in Caterpillar by 20.7% during the 3rd quarter. Bank of New York Mellon Corp now owns 3,553,930 shares of the industrial products company's stock worth $1,695,757,000 after buying an additional 609,023 shares during the last quarter. Finally, Legal & General Group Plc grew its stake in Caterpillar by 2.2% during the 3rd quarter. Legal & General Group Plc now owns 2,802,068 shares of the industrial products company's stock worth $1,337,007,000 after buying an additional 58,993 shares during the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Caterpillar Trading Up 0.2%

Shares of CAT stock opened at $910.54 on Thursday. The business's 50 day moving average is $803.84 and its two-hundred day moving average is $698.83. Caterpillar Inc. has a twelve month low of $339.50 and a twelve month high of $931.35. The company has a market capitalization of $419.38 billion, a P/E ratio of 45.32, a price-to-earnings-growth ratio of 1.79 and a beta of 1.63. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64.

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. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $17.42 billion for the quarter, compared to the consensus estimate of $16.53 billion. During the same period last year, the business posted $4.25 EPS. The company's revenue was up 22.2% on a year-over-year basis. Equities analysts forecast that Caterpillar Inc. will post 24.67 EPS for the current year.

Caterpillar Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th were paid a $1.51 dividend. This represents a $6.04 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Monday, April 20th. Caterpillar's dividend payout ratio (DPR) is 30.06%.

Insider Buying and Selling

In related news, CFO Andrew R. J. Bonfield sold 15,674 shares of Caterpillar stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the sale, the chief financial officer directly owned 52,935 shares in the company, valued at $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Jason Kaiser sold 5,642 shares of Caterpillar stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $883.03, for a total value of $4,982,055.26. Following the completion of the sale, the insider owned 9,594 shares in the company, valued at approximately $8,471,789.82. This trade represents a 37.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 98,273 shares of company stock worth $89,439,960. 0.33% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on CAT. Jefferies Financial Group raised their price target on Caterpillar from $900.00 to $1,045.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Morgan Stanley set a $915.00 price target on Caterpillar and gave the stock an "equal weight" rating in a research note on Friday, May 1st. Rothschild & Co Redburn raised their price target on Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a research note on Thursday, May 14th. Sanford C. Bernstein raised their price target on Caterpillar from $769.00 to $879.00 and gave the stock a "market perform" rating in a research note on Friday, May 1st. Finally, Wall Street Zen upgraded Caterpillar from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Sixteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $923.14.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar was highlighted as flashing a buy signal as the S&P 500 and Nasdaq hit new highs, suggesting technical momentum may be supporting the stock. Dow Jones Futures Rise After S&P 500, Nasdaq Hit Highs; 5 AI Stocks In Buy Areas
• Positive Sentiment: Investors are also focusing on Caterpillar’s exposure to data-center power demand, with commentary pointing to about $10.2 billion in generator sales last year as a “hidden AI revenue stream.” A $10.2 Billion Hidden AI Revenue Stream Most Investors Are Missing
• Positive Sentiment: A new bill aimed at classifying municipal snow-removal machinery as emergency vehicles could modestly support future demand for Caterpillar snow-removal equipment from local governments. New Bill: Representative Jack Bergman introduces H.R. 8782: Protecting Lifesaving Operations during Winter Storms Act
• Neutral Sentiment: Additional articles discussed Caterpillar in broader market and industrial-stock roundups, but did not add new company-specific catalysts. Best Construction Stocks To Follow Today - May 23rd

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.

Want to see what other hedge funds are holding CAT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Caterpillar Inc. (NYSE:CAT - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.