NewEdge Wealth LLC Makes New $6.68 Million Investment in Caterpillar Inc. $CAT

Key Points

• NewEdge Wealth LLC initiated a $6.68 million Caterpillar position by purchasing 6,274 shares in the second quarter. Institutional investors collectively own 70.98% of the company.
• Caterpillar significantly exceeded quarterly expectations, reporting $8.17 in EPS and $20.54 billion in revenue, with revenue up 23.7% year over year. The company also raised its quarterly dividend to $1.63, equivalent to a 0.8% annual yield.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $995.52, but Caterpillar’s elevated price-to-earnings ratio of 34.33 leaves the stock vulnerable if anticipated AI, power-generation, or earnings growth disappoints.

NewEdge Wealth LLC bought a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor bought 6,274 shares of the industrial products company's stock, valued at approximately $6,681,000.

Other institutional investors have also made changes to their positions in the company. Lam Group Inc. acquired a new stake in Caterpillar in the 1st quarter valued at about $26,000. Frazier Financial Advisors LLC lifted its position in shares of Caterpillar by 220.0% during the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock worth $28,000 after purchasing an additional 33 shares in the last quarter. Decker Retirement Planning Inc. grew its stake in shares of Caterpillar by 440.0% during the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 22 shares during the last quarter. Cornerstone Financial Management LLC acquired a new stake in shares of Caterpillar in the fourth quarter valued at approximately $32,000. Finally, Matrix Trust Co raised its position in Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock worth $33,000 after purchasing an additional 15 shares during the last quarter. 70.98% of the stock is owned by institutional investors.

Caterpillar Stock Performance

Shares of Caterpillar stock opened at $797.72 on Tuesday. The firm has a fifty day moving average of $889.47 and a two-hundred day moving average of $838.20. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The stock has a market capitalization of $366.69 billion, a price-to-earnings ratio of 34.33, a PEG ratio of 1.40 and a beta of 1.60. Caterpillar Inc. has a 52 week low of $410.52 and a 52 week high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.22 by $1.95. The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The firm's revenue was up 23.7% on a year-over-year basis. During the same period last year, the company earned $4.72 EPS. As a group, equities research analysts predict that Caterpillar Inc. will post 27.14 EPS for the current year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Monday, July 20th were given a $1.63 dividend. The ex-dividend date was Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's dividend payout ratio is 28.06%.

Trending Headlines about Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: July durable-goods orders rose 1.1%, suggesting a manufacturing rebound that could support demand for Caterpillar’s construction, mining and industrial equipment. CAT was identified as one of several industrial stocks positioned to benefit. 4 Industrial Stocks to Grab on Robust Jump in Durable Goods Orders
• Positive Sentiment: Erste Group Bank reportedly expects stronger earnings for Caterpillar, adding to the constructive analyst outlook surrounding the company. Erste Group Bank Predicts Stronger Earnings for Caterpillar
• Positive Sentiment: Caterpillar’s power-generation business is benefiting from rising electricity demand tied to data centers and artificial intelligence. Recent coverage points to a first-ever quarterly sales total above $20 billion and identifies power generation as an increasingly important growth engine. Forget the Industry Labels: Chevron and Caterpillar Are Both Betting on the AI Power Boom
• Positive Sentiment: The company is applying its autonomous-mining expertise to industrial AI deployment, including field-support tools such as the Cat AI Assistant. Caterpillar also committed $100 million to AI and robotics workforce training, which could improve productivity and strengthen its technology positioning. Caterpillar Commits $100 Million to AI and Robotics Training
• Neutral Sentiment: Wall Street’s average brokerage recommendation remains bullish, but the coverage notes that sell-side ratings are often overly optimistic and may have limited predictive value for CAT’s performance. Is Caterpillar a Buy as Wall Street Analysts Look Optimistic?
• Negative Sentiment: At a high earnings multiple, Caterpillar is increasingly being valued like a technology-growth company. That raises the risk of pressure on the stock if AI-related growth, power-equipment demand or earnings forecasts fail to exceed expectations. How AI Power Demand Transformed Caterpillar into a High-Multiple Tech Play

Analysts Set New Price Targets

CAT has been the topic of several research reports. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $1,002.00 price objective on shares of Caterpillar in a report on Wednesday, August 5th. JPMorgan Chase & Co. boosted their target price on Caterpillar from $1,125.00 to $1,165.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 17th. Barclays upped their price target on Caterpillar from $800.00 to $900.00 and gave the company an "equal weight" rating in a research note on Thursday, August 6th. Robert W. Baird set a $970.00 price objective on Caterpillar in a research report on Wednesday, August 5th. Finally, Rothschild & Co Redburn boosted their price objective on Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $995.52.

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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