Lazard Asset Management LLC Has $44.18 Million Holdings in Caterpillar Inc. $CAT

Key Points

• Lazard Asset Management increased its Caterpillar stake by 222.9% in the first quarter, ending with 62,361 shares valued at approximately $44.18 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported strong quarterly results, with revenue up 22.2% year over year to $17.41 billion and EPS of $5.54, beating the $4.65 analyst consensus. The company also raised its quarterly dividend to $1.63 per share, equivalent to a 0.8% annualized yield.
• The stock has a “Moderate Buy” consensus rating and an average analyst price target of $980.57, but valuation concerns, insider selling, softer analyst sentiment and potential rare-earth supply risks could limit further upside.

Lazard Asset Management LLC grew its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 222.9% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 62,361 shares of the industrial products company's stock after buying an additional 43,046 shares during the quarter. Lazard Asset Management LLC's holdings in Caterpillar were worth $44,180,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds have also recently added to or reduced their stakes in the company. Vanguard Group Inc. raised its holdings in shares of Caterpillar by 1.0% during 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 purchasing an additional 442,164 shares in the last quarter. State Street Corp boosted its holdings in Caterpillar by 1.1% in the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock worth $20,273,039,000 after purchasing an additional 385,204 shares in the last quarter. Geode Capital Management LLC increased its position in Caterpillar by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company's stock worth $6,072,572,000 after buying an additional 94,524 shares during the last quarter. Fisher Asset Management LLC raised its holdings in Caterpillar by 0.6% during the fourth quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock valued at $5,438,408,000 after buying an additional 54,069 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in shares of Caterpillar by 16.0% in the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock worth $3,860,457,000 after buying an additional 928,974 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Caterpillar Price Performance

Shares of NYSE:CAT opened at $841.67 on Wednesday. The business has a 50 day moving average price of $928.73 and a 200 day moving average price of $808.93. Caterpillar Inc. has a twelve month low of $405.46 and a twelve month high of $1,073.46. The company has a market cap of $387.66 billion, a price-to-earnings ratio of 41.89, a PEG ratio of 1.71 and a beta of 1.57. 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 quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping 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 during the quarter, compared to analyst estimates of $16.53 billion. During the same period in the previous year, the company earned $4.25 earnings per share. The company's quarterly revenue was up 22.2% compared to the same quarter last year. Research analysts predict that Caterpillar Inc. will post 24.87 earnings per share for the current year.

Caterpillar Increases Dividend

The business 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 dividend of $1.63 per share. The ex-dividend date of this dividend is Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. Caterpillar's dividend payout ratio (DPR) is presently 32.45%.

Insiders Place Their Bets

In related news, insider Anthony D. Fassino sold 16,283 shares of the stock in a transaction dated Monday, May 11th. The shares were 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 owned 46,041 shares in the company, valued at $42,210,388.80. This trade represents a 26.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Lange Bob De sold 24,222 shares of Caterpillar stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the completion of the transaction, the insider owned 86,029 shares of the company's stock, valued at $79,397,884.68. This trade represents a 21.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 95,773 shares of company stock worth $87,642,635 over the last quarter. Corporate insiders own 0.33% of the company's stock.

More Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Earnings expectations are supportive. Zacks upgraded Caterpillar to Rank #2 (Buy), citing improving earnings prospects. The company is also viewed as having two factors that could support a quarterly earnings beat ahead of next week’s report. Caterpillar Earnings Expected to Grow
• Positive Sentiment: Strong recent fundamentals provide a cushion. Caterpillar’s latest reported quarter exceeded consensus estimates, with revenue rising 22.2% year over year and earnings per share reaching $5.54 versus the expected $4.65. Investors may be looking for this momentum to continue in the upcoming release.
• Neutral Sentiment: Investor attention remains high. Caterpillar is a heavily watched industrial stock, and analysts and investors are debating whether its powerful multiyear rally can continue. The company’s shares have gained substantially over five years, raising the importance of future earnings and cash-flow growth.
• Negative Sentiment: Valuation may be limiting further upside. Fair-value analysis is mixed: earnings multiples appear relatively reasonable, while a discounted-cash-flow estimate suggests the stock is approximately fairly valued. After its extended rally, the shares face a higher hurdle to justify additional gains. Caterpillar Stock Looks Slightly Above Fair Value
• Negative Sentiment: Analyst sentiment has softened. Erste Group Bank AG downgraded Caterpillar from “buy” to “hold,” adding pressure to the stock’s near-term outlook.
• Negative Sentiment: Rare-earth supply risks could increase costs or disrupt production. China’s tighter export controls on rare-earth materials used in motors, sensors and control systems may affect Caterpillar’s advanced equipment and force manufacturers to secure more expensive alternative supplies. Caterpillar Faces Rare Earth Squeeze

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. DA Davidson increased their price objective on Caterpillar from $650.00 to $845.00 and gave the company a "neutral" rating in a report on Monday, May 4th. HSBC upped their target price on Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. Rothschild & Co Redburn increased their price target on Caterpillar from $700.00 to $950.00 and gave the company a "neutral" rating in a report on Thursday, May 14th. Robert W. Baird boosted their price objective on shares of Caterpillar from $1,165.00 to $1,200.00 and gave the stock an "outperform" rating in a research note on Friday, June 26th. Finally, Morgan Stanley set a $915.00 price objective on shares of Caterpillar and gave the stock an "equal weight" rating in a report on Friday, May 1st. Fourteen research analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat.com, Caterpillar presently has a consensus rating of "Moderate Buy" and an average price target of $980.57.

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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