Simmons Bank Reduces Holdings in Caterpillar Inc. $CAT

Key Points

• Simmons Bank trimmed its Caterpillar stake by 4.1% in the first quarter, selling 1,132 shares and leaving it with 26,265 shares valued at about $18.6 million. Caterpillar still ranked as the bank’s 15th-largest holding.
• Caterpillar reported strong quarterly results, with EPS of $5.54 beating estimates by $0.89 and revenue of $17.41 billion topping expectations. Revenue rose 22.2% from a year earlier, underscoring solid operating momentum.
• Analysts remain broadly positive on CAT, with several firms raising price targets and the consensus rating sitting at “Moderate Buy.” The company also increased its quarterly dividend to $1.63 per share, up from $1.51.

Simmons Bank decreased its stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 4.1% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 26,265 shares of the industrial products company's stock after selling 1,132 shares during the period. Caterpillar makes up 1.2% of Simmons Bank's investment portfolio, making the stock its 15th largest holding. Simmons Bank's holdings in Caterpillar were worth $18,608,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors also recently bought and sold shares of the stock. Advisory Resource Group boosted its position in Caterpillar by 0.8% during the 4th quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company's stock valued at $935,000 after acquiring an additional 13 shares in the last quarter. Sunbeam Capital Management LLC raised its position in shares of Caterpillar by 1.1% in the 1st quarter. Sunbeam Capital Management LLC now owns 1,164 shares of the industrial products company's stock worth $825,000 after acquiring an additional 13 shares in the last quarter. Brandywine Oak Private Wealth LLC lifted its stake in shares of Caterpillar by 2.6% in the 1st quarter. Brandywine Oak Private Wealth LLC now owns 506 shares of the industrial products company's stock valued at $358,000 after purchasing an additional 13 shares during the period. Sylvest Advisors LLC boosted its position in shares of Caterpillar by 3.6% during the first quarter. Sylvest Advisors LLC now owns 377 shares of the industrial products company's stock valued at $267,000 after purchasing an additional 13 shares in the last quarter. Finally, Invst LLC grew its stake in Caterpillar by 1.9% in the fourth quarter. Invst LLC now owns 753 shares of the industrial products company's stock worth $431,000 after purchasing an additional 14 shares during the period. 70.98% of the stock is owned by institutional investors.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research raised its Q3 EPS estimates for Caterpillar, reinforcing the view that earnings momentum may remain strong. Q3 EPS Estimates for Caterpillar Raised by Zacks Research
• Positive Sentiment: Coverage highlighting Caterpillar’s “unprecedented valuation” tied to the AI infrastructure buildout suggests investors are paying up for CAT’s exposure to data center, power, and heavy equipment demand. Caterpillar Hits Unprecedented Valuation Amid AI Infrastructure Surge
• Positive Sentiment: Analyst roundups continue to list Caterpillar among favored industrial names, implying the stock remains a preferred pick despite broader sector caution. Zacks Analyst Blog Highlights Caterpillar
• Neutral Sentiment: Industry commentary says the construction and mining equipment sector faces headwinds, but Caterpillar is still viewed as one of the names worth watching. 3 Construction & Mining Equipment Stocks Braving Industry Headwinds

Insider Buying and Selling

In related news, insider Lange Bob De sold 24,222 shares of the company's stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total value of $22,354,968.24. Following the transaction, the insider directly owned 86,029 shares of the company's stock, valued at approximately $79,397,884.68. This represents a 21.97% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Jason Kaiser sold 5,642 shares of Caterpillar stock in a transaction on Monday, May 4th. The stock was sold at an average price of $883.03, for a total value of $4,982,055.26. Following the completion of the sale, the insider directly owned 9,594 shares of the company's stock, valued at approximately $8,471,789.82. The trade was a 37.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 95,773 shares of company stock worth $87,642,635 over the last 90 days. 0.33% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

Several brokerages have commented on CAT. Daiwa Securities Group raised their price objective on Caterpillar from $790.00 to $900.00 and gave the company a "neutral" rating in a research report on Friday, May 1st. Oppenheimer set a $980.00 price target on shares of Caterpillar and gave the stock an "outperform" rating in a research note on Friday, May 1st. Citigroup lifted their price target on shares of Caterpillar from $905.00 to $1,020.00 and gave the company a "buy" rating in a research report on Friday, May 1st. HSBC boosted their price objective on shares of Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Finally, Evercore reaffirmed an "outperform" rating and set a $1,103.00 target price on shares of Caterpillar in a research note on Monday, May 11th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Caterpillar currently has a consensus rating of "Moderate Buy" and a consensus price target of $941.45.

Caterpillar Price Performance

CAT opened at $1,033.40 on Tuesday. Caterpillar Inc. has a 1 year low of $384.25 and a 1 year high of $1,057.07. The stock has a 50-day moving average price of $902.63 and a 200-day moving average price of $759.31. The firm has a market cap of $475.97 billion, a PE ratio of 51.44, a P/E/G ratio of 1.97 and a beta of 1.59. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81.

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 for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. The business had revenue of $17.41 billion during the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. Caterpillar's revenue was up 22.2% compared to the same quarter last year. During the same period last year, the business earned $4.25 EPS. Sell-side analysts predict that Caterpillar Inc. will post 24.66 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a dividend yield of 0.6%. This is an increase from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date of this dividend is Monday, July 20th. Caterpillar's payout ratio is 30.06%.

Caterpillar 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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