M3 Wealth Management LLC Makes New $700,000 Investment in Caterpillar Inc. $CAT

Key Points

• M3 Wealth Management opened a new position in Caterpillar during the fourth quarter, buying 1,223 shares valued at about $700,000.
• Caterpillar’s latest quarter beat expectations, with EPS of $5.54 versus $4.65 expected and revenue of $17.42 billion, up 22.2% year over year.
• Analysts remain broadly positive on CAT, with a consensus rating of “Moderate Buy” and an average price target of $923.14, while several firms recently raised their targets.

M3 Wealth Management LLC purchased a new position in Caterpillar Inc. (NYSE:CAT - Free Report) during the 4th quarter, according to its most recent 13F filing with the SEC. The firm purchased 1,223 shares of the industrial products company's stock, valued at approximately $700,000.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Torren Management LLC acquired a new position in shares of Caterpillar in the 4th quarter valued at $27,000. Frazier Financial Advisors LLC boosted its position in shares of Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $28,000 after acquiring an additional 33 shares in the last quarter. IFS Advisors LLC acquired a new stake in shares of Caterpillar during the 4th quarter valued at about $31,000. Rialto Wealth Management LLC boosted its position in shares of Caterpillar by 47.4% during the 4th quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company's stock valued at $32,000 after acquiring an additional 18 shares in the last quarter. Finally, Noble Wealth Management PBC boosted its holdings in Caterpillar by 140.0% during the fourth quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company's stock valued at $34,000 after purchasing an additional 35 shares in the last quarter. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Price Performance

Shares of Caterpillar stock opened at $909.25 on Wednesday. Caterpillar Inc. has a 1-year low of $339.50 and a 1-year high of $931.35. The stock has a market capitalization of $418.79 billion, a price-to-earnings ratio of 45.26, a P/E/G 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 firm's 50-day moving average price is $799.63 and its two-hundred day moving average price is $696.43.

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, topping 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 company had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.53 billion. During the same period in the previous year, the firm posted $4.25 earnings per share. The company's revenue was up 22.2% on a year-over-year basis. On average, equities analysts predict that Caterpillar Inc. will post 24.67 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

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. The ex-dividend date of this dividend was Monday, April 20th. This represents a $6.04 dividend on an annualized basis and a dividend yield of 0.7%. Caterpillar's payout ratio is currently 30.06%.

Analyst Ratings Changes

A number of equities research analysts have weighed in on CAT shares. Barclays lifted their price objective on Caterpillar from $700.00 to $800.00 and gave the company an "equal weight" rating in a report on Friday, May 1st. Oppenheimer set a $980.00 price objective on Caterpillar and gave the company an "outperform" rating in a report on Friday, May 1st. Truist Financial set a $1,043.00 price objective on Caterpillar in a report on Friday, May 1st. Bank of America lifted their price objective on Caterpillar from $930.00 to $989.00 and gave the company a "buy" rating in a report on Friday, May 1st. Finally, Citigroup lifted their price objective on Caterpillar from $905.00 to $1,020.00 and gave the company a "buy" rating in a report on Friday, May 1st. Sixteen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $923.14.

More Caterpillar News

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

Insider Buying and Selling

In other Caterpillar news, insider Lange Bob De sold 24,222 shares of the business's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total value of $22,354,968.24. Following the completion of the transaction, the insider directly owned 86,029 shares of the company's stock, valued at approximately $79,397,884.68. The trade was a 21.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Jason Kaiser sold 5,642 shares of the business'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 directly owned 9,594 shares of the company's stock, valued at approximately $8,471,789.82. This 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 90 days, insiders sold 98,273 shares of company stock valued at $89,439,960. Insiders own 0.33% of the company's stock.

Caterpillar Company 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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