Smithbridge Asset Management Inc. DE Makes New Investment in Caterpillar Inc. $CAT

Key Points

• Smithbridge Asset Management disclosed a new fourth-quarter stake in Caterpillar, buying 1,847 shares worth about $1.06 million.
• Several analysts recently raised price targets on Caterpillar, with the stock now carrying a Moderate Buy consensus and an average target of $933.27.
• Caterpillar reported better-than-expected Q1 earnings and revenue, and it also announced an 8% dividend increase to $1.63 per share.

Smithbridge Asset Management Inc. DE acquired a new position in Caterpillar Inc. (NYSE:CAT - Free Report) in the fourth quarter, according to the company in its most recent filing with the SEC. The firm acquired 1,847 shares of the industrial products company's stock, valued at approximately $1,058,000.

A number of other hedge funds also recently modified their holdings of the company. Torren Management LLC bought a new position in shares of Caterpillar during the 4th quarter worth about $27,000. Frazier Financial Advisors LLC lifted its holdings 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 worth $28,000 after acquiring an additional 33 shares during the period. IFS Advisors LLC bought a new position in shares of Caterpillar during the 4th quarter worth about $31,000. Rialto Wealth Management LLC lifted its holdings 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 worth $32,000 after acquiring an additional 18 shares during the period. Finally, Noble Wealth Management PBC lifted its holdings in shares of Caterpillar by 140.0% during the 4th quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company's stock worth $34,000 after acquiring an additional 35 shares during the period. Institutional investors own 70.98% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on CAT shares. Sanford C. Bernstein raised their target price on Caterpillar from $769.00 to $879.00 and gave the stock a "market perform" rating in a research report on Friday, May 1st. Truist Financial set a $1,043.00 target price on Caterpillar in a research report on Friday, May 1st. HSBC raised their target price on Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. Bank of America raised their target price on Caterpillar from $930.00 to $989.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Finally, Argus lifted their price target on shares of Caterpillar from $820.00 to $990.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $933.27.

Insider Buying and Selling

In other Caterpillar news, insider Jason Kaiser sold 5,642 shares of the business's stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $883.03, for a total value 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. The trade was a 37.03% 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 Lange Bob De sold 24,222 shares of the business's stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total transaction 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. This represents a 21.97% 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 95,773 shares of company stock valued at $87,642,635. Insiders own 0.33% of the company's stock.

Caterpillar Trading Down 6.3%

Shares of CAT opened at $856.74 on Thursday. The stock has a fifty day moving average price of $844.44 and a two-hundred day moving average price of $722.90. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. Caterpillar Inc. has a 52-week low of $355.70 and a 52-week high of $946.83. The company has a market cap of $394.61 billion, a price-to-earnings ratio of 42.65, a PEG ratio of 1.80 and a beta of 1.59.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.53 billion. During the same quarter in the previous year, the company posted $4.25 EPS. The business's revenue for the quarter was up 22.2% compared to the same quarter last year. Analysts predict that Caterpillar Inc. will post 24.68 EPS for the current fiscal year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be paid a $1.63 dividend. This is a boost from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, July 20th. Caterpillar's payout ratio is presently 30.06%.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s board approved an 8% dividend increase to $1.63 per share, reinforcing management’s confidence in cash flow and its commitment to returning capital to shareholders. Caterpillar Inc. Increases Dividend
• Positive Sentiment: Several articles highlighted Caterpillar as a momentum and growth stock to watch, with Zacks upgrading it to “strong-buy” and noting earnings growth, price strength, and continued interest tied to AI data center infrastructure demand. Earnings Growth & Price Strength Make Caterpillar (CAT) a Stock to Watch
• Positive Sentiment: Recent coverage also pointed to strong Q1 2026 volume growth, with total sales up 22% and demand improving across Construction and Power & Energy, supporting the bull case for continued earnings momentum. CAT Volumes Gain Strength Across Segments in Q126: More Upside Ahead?
• Neutral Sentiment: Technical and market commentary said CAT remains above its 50-day moving average and is still near key levels after a powerful multi-month rally, suggesting the stock may be consolidating rather than breaking down on company-specific news. Caterpillar Holds Key Level After Plowing Into Data Center Market
• Negative Sentiment: One note said Caterpillar has surged sharply over the past year and may be stretched on valuation, raising the risk of near-term pullbacks if investors lock in gains. Is It Too Late To Consider Caterpillar (CAT) After Its 158% One-Year Surge?
• Negative Sentiment: The biggest near-term headwind is the broad market move: CAT was one of the Dow’s weak spots during a major selloff, which likely amplified today’s decline despite otherwise favorable company-specific news. Dow's 663-point drop led by losses for shares of Caterpillar, Honeywell

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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