Oxbow Advisors LLC Purchases New Holdings in Caterpillar Inc. $CAT

Key Points

• Oxbow Advisors purchased 5,587 Caterpillar shares worth approximately $5.95 million in the second quarter, while institutional investors collectively own 70.98% of CAT.
• Caterpillar reported a strong quarter, with EPS of $8.17 beating estimates by $1.95 and revenue rising 23.7% year over year to $20.54 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $995.52.
• The company increased its quarterly dividend to $1.63 per share, equivalent to an annualized $6.52 payout and a 0.8% yield; however, its elevated valuation leaves the stock vulnerable if AI- and power-demand growth disappoints.

Oxbow Advisors LLC acquired a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 5,587 shares of the industrial products company's stock, valued at approximately $5,949,000.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Decker Retirement Planning Inc. grew its holdings in shares of Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock worth $29,000 after purchasing an additional 22 shares in the last quarter. Matrix Trust Co lifted its position in Caterpillar by 93.8% during the second 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 period. Axiom Investment Management LLC bought a new stake in Caterpillar during the second quarter worth about $36,000. Lam Group Inc. acquired a new stake in Caterpillar during the first quarter worth about $26,000. Finally, Ramsey Quantitative Systems bought a new position in Caterpillar in the 2nd quarter valued at about $48,000. 70.98% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Robert W. Baird set a $970.00 price target on shares of Caterpillar in a report on Wednesday, August 5th. Sanford C. Bernstein reissued a "market perform" rating and issued a $1,002.00 price objective on shares of Caterpillar in a research note on Wednesday, August 5th. Royal Bank Of Canada boosted their price objective on shares of Caterpillar from $877.00 to $897.00 and gave the company a "sector perform" rating in a research report on Wednesday, August 5th. Argus upped their target price on Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Finally, DA Davidson lifted their price target on Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $995.52.

Key Caterpillar News

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

Caterpillar Stock Down 0.3%

NYSE:CAT opened at $797.72 on Tuesday. Caterpillar Inc. has a one year low of $410.52 and a one year high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. The company has a market cap of $366.69 billion, a PE ratio of 34.33, a P/E/G ratio of 1.40 and a beta of 1.60. The firm's 50 day simple moving average is $889.47 and its 200 day simple moving average is $838.20.

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

Caterpillar Increases Dividend

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

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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source