Palmer Knight Co Invests $13.24 Million in Caterpillar Inc. $CAT

Key Points

• Palmer Knight Co. purchased 12,433 Caterpillar shares worth approximately $13.24 million, making CAT its second-largest holding at 5.1% of the portfolio. Institutional investors and hedge funds collectively own 70.98% of the stock.
• Caterpillar reported strong quarterly results, with EPS of $8.17 versus the $6.22 consensus and revenue of $20.54 billion, up 23.7% year over year. The company also raised its quarterly dividend to $1.63, or $6.52 annually.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $995.52, although CAT’s elevated valuation and recent share-price decline pose risks if growth expectations weaken.

Palmer Knight Co bought a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) in the 2nd quarter, according to its most recent 13F filing with the SEC. The firm bought 12,433 shares of the industrial products company's stock, valued at approximately $13,240,000. Caterpillar accounts for 5.1% of Palmer Knight Co's holdings, making the stock its 2nd largest holding.

A number of other institutional investors have also added to or reduced their stakes in the company. Axxcess Wealth Management LLC grew its holdings in Caterpillar by 2.8% during the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock worth $12,844,000 after buying an additional 604 shares in the last quarter. DSG Capital Advisors LLC purchased a new position in Caterpillar during the 1st quarter worth $1,226,000. Cornerstone Planning LLC purchased a new position in Caterpillar during the 4th quarter worth $4,517,000. RiverFront Investment Group LLC grew its stake in shares of Caterpillar by 21.1% in the 4th quarter. RiverFront Investment Group LLC now owns 8,915 shares of the industrial products company's stock worth $5,107,000 after acquiring an additional 1,552 shares in the last quarter. Finally, Larson Financial Group LLC raised its holdings in shares of Caterpillar by 73.6% in the fourth quarter. Larson Financial Group LLC now owns 12,915 shares of the industrial products company's stock valued at $7,399,000 after purchasing an additional 5,476 shares during the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

CAT has been the topic of several analyst reports. UBS Group boosted their price target on shares of Caterpillar from $900.00 to $925.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Erste Group Bank cut shares of Caterpillar from a "buy" rating to a "hold" rating in a research report on Monday, July 27th. Truist Financial set a $980.00 target price on Caterpillar in a report on Wednesday, August 5th. JPMorgan Chase & Co. increased their price target on Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a research report on Wednesday, June 17th. Finally, Argus lifted their price target on Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a report on Tuesday, May 5th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Caterpillar presently has a consensus rating of "Moderate Buy" and a consensus target price of $995.52.

Caterpillar Stock Down 0.3%

Shares of NYSE CAT opened at $797.72 on Tuesday. 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 stock has a market capitalization of $366.69 billion, a PE ratio of 34.33, a P/E/G ratio of 1.40 and a beta of 1.60. Caterpillar Inc. has a one year low of $410.52 and a one year high of $1,073.46. The business's fifty day moving average price is $889.47 and its 200-day moving average price is $838.20.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion during 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 for the quarter was up 23.7% on a year-over-year basis. During the same quarter last year, the firm posted $4.72 EPS. On average, equities research analysts anticipate that Caterpillar Inc. will post 27.14 EPS for the current year.

Caterpillar Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th were paid a $1.63 dividend. The ex-dividend date was Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. 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

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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