Stephens Inc. AR Sells 1,937 Shares of Caterpillar Inc. $CAT

Key Points

• Stephens Inc. AR trimmed its Caterpillar stake by 3.3% in the first quarter, selling 1,937 shares and ending with 56,306 shares valued at about $39.9 million.
• Caterpillar reported strong quarterly results, with EPS of $5.54 and revenue of $17.41 billion, both ahead of analyst expectations, while revenue rose 22.2% year over year.
• The company also raised its quarterly dividend to $1.63 per share from $1.51, and recent analyst coverage remained broadly positive with several price-target increases, including Truist’s boost to $1,218.

Stephens Inc. AR reduced its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 3.3% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 56,306 shares of the industrial products company's stock after selling 1,937 shares during the period. Stephens Inc. AR's holdings in Caterpillar were worth $39,890,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. Lam Group Inc. bought a new position in shares of Caterpillar in the 1st quarter valued at $26,000. Torren Management LLC acquired a new stake in Caterpillar during the 4th quarter worth approximately $27,000. Frazier Financial Advisors LLC grew its holdings in 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 last quarter. IFS Advisors LLC bought a new position in shares of Caterpillar during the fourth quarter valued at $31,000. Finally, Cornerstone Financial Management LLC acquired a new position in shares of Caterpillar during the fourth quarter worth $32,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Stock Performance

Shares of CAT stock opened at $965.44 on Monday. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. The firm has a fifty day simple moving average of $918.32 and a two-hundred day simple moving average of $770.29. Caterpillar Inc. has a 12 month low of $388.09 and a 12 month high of $1,073.46. The firm has a market capitalization of $444.67 billion, a PE ratio of 48.06, a price-to-earnings-growth ratio of 1.90 and a beta of 1.57.

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 analysts' consensus estimates of $4.65 by $0.89. The firm had revenue of $17.41 billion during the quarter, compared to analysts' expectations of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business's revenue was up 22.2% on a year-over-year basis. During the same period last year, the company earned $4.25 earnings per share. Analysts forecast that Caterpillar Inc. will post 24.71 EPS for the current fiscal year.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be issued a dividend of $1.63 per share. The ex-dividend date of this dividend is Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. This is an increase from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's dividend payout ratio is presently 30.06%.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Truist raised its price target on Caterpillar to $1,218 from $1,043 and kept a buy rating, reinforcing bullish sentiment around the stock’s earnings and growth outlook. Article Link
• Positive Sentiment: Several reports highlighted Caterpillar as a momentum, long-term, and “trending” stock, suggesting investor interest remains strong and could help keep shares elevated. Article Link
• Positive Sentiment: Analysts and commentators pointed to Caterpillar’s role in powering data centers and other AI-related infrastructure, a theme that has helped explain the stock’s strong run. Article Link
• Positive Sentiment: Caterpillar also received fresh praise for strong backlog, earnings growth, and long-term expansion plans, which supports the case for continued upside. Article Link
• Neutral Sentiment: Caterpillar announced a $5 million investment in Texas workforce training and manufacturing education, a positive long-term initiative but not likely a major near-term stock driver. Article Link
• Neutral Sentiment: Wall Street analyst coverage remains broadly optimistic, with multiple articles noting favorable average brokerage recommendations, though these do not always translate into reliable signals. Article Link
• Negative Sentiment: Michael Burry disclosed a first-ever short position in Caterpillar, arguing the stock’s AI-linked rally may have stretched valuation too far; that news is likely the main source of pressure on shares today. Article Link

Insider Transactions at Caterpillar

In related news, insider Denise C. Johnson sold 12,605 shares of the company's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the sale, the insider owned 49,825 shares in the company, valued at approximately $45,236,615.75. This represents a 20.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the sale, the chief financial officer directly owned 52,935 shares of the company's stock, valued at $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 95,773 shares of company stock valued at $87,642,635. Corporate insiders own 0.33% of the company's stock.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the company. Barclays increased their price objective on Caterpillar from $700.00 to $800.00 and gave the company an "equal weight" rating in a report on Friday, May 1st. Evercore reiterated an "outperform" rating and issued a $1,103.00 target price on shares of Caterpillar in a report on Monday, May 11th. Truist Financial raised their target price on Caterpillar from $1,043.00 to $1,218.00 and gave the stock a "buy" rating in a research note on Thursday. Wells Fargo & Company lifted their price objective on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research note on Tuesday, June 23rd. Finally, Oppenheimer set a $980.00 target price on shares of Caterpillar and gave the stock an "outperform" rating in a research note on Friday, May 1st. One research 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 stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $949.41.

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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