LSV Asset Management Reduces Stock Holdings in Caterpillar Inc. $CAT

Key Points

• LSV Asset Management sharply cut its Caterpillar stake by 94.5% in the fourth quarter, selling 77,000 shares and leaving it with 4,500 shares worth about $2.58 million.
• Insider selling has also been notable, with CFO Andrew R. J. Bonfield and insider Anthony D. Fassino both selling large blocks of CAT shares; insiders have sold 98,273 shares over the past 90 days.
• Caterpillar reported strong quarterly results, beating analyst estimates on both EPS and revenue, while analysts remain constructive overall with a consensus rating of “Moderate Buy” and a price target of $923.14.

LSV Asset Management reduced its stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 94.5% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 4,500 shares of the industrial products company's stock after selling 77,000 shares during the quarter. LSV Asset Management's holdings in Caterpillar were worth $2,578,000 as of its most recent filing with the SEC.

Several other hedge funds have also modified their holdings of CAT. Pacific Point Advisors LLC purchased a new stake in shares of Caterpillar during the 4th quarter valued at about $579,000. Brighton Jones LLC raised its holdings in shares of Caterpillar by 51.5% during the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock valued at $2,688,000 after buying an additional 2,519 shares during the period. United Bank raised its holdings in shares of Caterpillar by 108.5% during the 2nd quarter. United Bank now owns 4,083 shares of the industrial products company's stock valued at $1,585,000 after buying an additional 2,125 shares during the period. Schnieders Capital Management LLC. raised its holdings in shares of Caterpillar by 3.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock valued at $3,551,000 after buying an additional 347 shares during the period. Finally, Alliancebernstein L.P. increased its holdings in Caterpillar by 6.5% during the 2nd quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company's stock worth $222,120,000 after purchasing an additional 34,846 shares during the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of Caterpillar 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 sale, the chief financial officer owned 52,935 shares of the company's stock, valued at $48,631,913.85. The trade was a 22.85% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Anthony D. Fassino sold 16,283 shares of Caterpillar stock in a transaction on Monday, May 11th. The shares were sold at an average price of $916.80, for a total value of $14,928,254.40. Following the sale, the insider directly owned 46,041 shares in the company, valued at $42,210,388.80. The trade was a 26.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 98,273 shares of company stock worth $89,439,960 over the last ninety days. 0.33% of the stock is currently owned by company insiders.

Caterpillar Price Performance

Shares of CAT opened at $909.25 on Wednesday. Caterpillar Inc. has a 52 week low of $339.50 and a 52 week high of $931.35. The firm has a market cap of $418.79 billion, a price-to-earnings ratio of 45.26, a PEG ratio of 1.74 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. The stock has a 50 day moving average of $799.63 and a 200-day moving average of $696.43.

Caterpillar (NYSE:CAT - Get Free Report) last released 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 return on equity of 48.21% and a net margin of 13.33%.The business had revenue of $17.42 billion during the quarter, compared to analyst estimates of $16.53 billion. During the same quarter in the previous year, the firm posted $4.25 EPS. The business's revenue for the quarter was up 22.2% compared to the same quarter last year. As a group, analysts forecast that Caterpillar Inc. will post 24.67 EPS for the current year.

Caterpillar Dividend Announcement

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

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Market coverage noted that Caterpillar flashed a buy signal as the S&P 500, Nasdaq and Russell 2000 hit new highs, reflecting broad strength in industrial and AI-related names. Dow Jones Futures Rise After S&P 500, Nasdaq Hit Highs; 5 AI Stocks In Buy Areas
• Positive Sentiment: Investors are focusing on a “hidden AI revenue stream” in Caterpillar’s financials: about $10.2 billion in generator sales to data centers last year, which supports the idea that CAT benefits from AI buildout even though it is not a pure-play AI stock. A $10.2 Billion Hidden AI Revenue Stream Most Investors Are Missing
• Neutral Sentiment: Another article discussed Caterpillar in the context of the Iran war and whether it is a buy, sell or hold, but it did not add a clear new catalyst for the stock. Is Caterpillar a Buy, Sell, or Hold Amid the Iran War?
• Neutral Sentiment: Clinch Resources’ purchase of a Caterpillar highwall miner is a small equipment-order headline that may support sentiment around CAT’s mining product line, but it is not likely to move the stock on its own. Clinch Resources acquires first Caterpillar highwall miner for West Virginia met coal operation

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. Wells Fargo & Company lifted their price objective on Caterpillar from $960.00 to $1,050.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. Weiss Ratings restated a "buy (b-)" rating on shares of Caterpillar in a report on Friday, May 8th. Barclays lifted their price objective on Caterpillar from $700.00 to $800.00 and gave the stock an "equal weight" rating in a report on Friday, May 1st. Argus lifted their price objective on Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. Finally, Morgan Stanley set a $915.00 price objective on Caterpillar and gave the stock an "equal weight" rating in a report on Friday, May 1st. Sixteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $923.14.

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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