Xcel Wealth Management LLC Sells 1,500 Shares of Caterpillar Inc. $CAT

Key Points

• Xcel Wealth Management reduced its Caterpillar stake by 22.8% in the first quarter, selling 1,500 shares and leaving it with 5,076 shares valued at about $3.6 million.
• Several analysts turned more bullish on Caterpillar, with multiple price-target increases and rating upgrades; MarketBeat shows a consensus Moderate Buy rating and average target of $939.86.
• Caterpillar reported better-than-expected Q1 results, with EPS of $5.54 on revenue of $17.41 billion, and also raised its quarterly dividend to $1.63 per share.

Xcel Wealth Management LLC cut its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 22.8% in the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 5,076 shares of the industrial products company's stock after selling 1,500 shares during the quarter. Caterpillar makes up 1.0% of Xcel Wealth Management LLC's investment portfolio, making the stock its 25th largest holding. Xcel Wealth Management LLC's holdings in Caterpillar were worth $3,596,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Torren Management LLC purchased a new stake in Caterpillar during the fourth quarter worth about $27,000. Frazier Financial Advisors LLC boosted its stake in Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $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 4th quarter valued at approximately $31,000. Rialto Wealth Management LLC grew its position 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 valued at $32,000 after acquiring an additional 18 shares during the period. Finally, Cornerstone Financial Management LLC purchased a new stake in shares of Caterpillar during the 4th quarter worth approximately $32,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts recently commented on CAT shares. HSBC upped their price objective on Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Wall Street Zen upgraded Caterpillar from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Wolfe Research upped their price target on Caterpillar from $670.00 to $750.00 and gave the company an "outperform" rating in a research report on Tuesday, March 31st. Bank of America increased their price target on Caterpillar from $930.00 to $989.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Finally, Zacks Research raised Caterpillar from a "hold" rating to a "strong-buy" rating in a report on Monday, June 8th. 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 stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $939.86.

Insider Buying and Selling at Caterpillar

In other news, insider Anthony D. Fassino sold 16,283 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $916.80, for a total value of $14,928,254.40. Following the completion of the transaction, the insider directly owned 46,041 shares in the company, valued at approximately $42,210,388.80. This trade represents a 26.13% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Jason Kaiser sold 5,642 shares of the business's stock in a transaction that occurred on Monday, May 4th. The shares were sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the transaction, the insider directly owned 9,594 shares of the company's stock, valued at approximately $8,471,789.82. This represents a 37.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is owned by corporate insiders.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is being boosted by a record backlog, AI-related power generation demand, and aggressive capital returns, which support the case for continued earnings strength. Caterpillar Soars But Analysts Remain Cautious
• Positive Sentiment: Wells Fargo reportedly raised its price recommendation on Caterpillar, reinforcing bullish sentiment around the stock’s dividend growth and long-term earnings power. Top 5 Blue Chip Stocks with Growing Dividends
• Positive Sentiment: Several writeups pointed to Caterpillar’s strong year-to-date and multi-year performance, suggesting investors are still re-rating the stock higher on expectations for continued growth. Caterpillar (CAT) Stock Near $984 After Big Rally Is There Still Upside Potential
• Neutral Sentiment: Articles comparing Caterpillar to other industrial and mining stocks are mostly informational and do not appear to add a fresh catalyst on their own. Unpacking Q1 Earnings: Caterpillar NYSE: CAT In The Context Of Other Heavy Machinery Stocks
• Neutral Sentiment: The Caterpillar Foundation’s $2.5 million initiative for America’s 250th anniversary is positive from a corporate social responsibility standpoint, but it is unlikely to materially affect near-term earnings. Caterpillar Foundation Announces $2.5 Million Initiative in Celebration of America's 250th Anniversary
• Negative Sentiment: Some coverage noted that analysts remain cautious after the stock’s big rally, implying valuation concerns and the possibility of upside slowing from here. Caterpillar Soars But Analysts Remain Cautious

Caterpillar Stock Up 5.9%

Caterpillar stock opened at $1,053.62 on Friday. The firm has a 50 day simple moving average of $892.87 and a 200 day simple moving average of $753.39. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. Caterpillar Inc. has a 1-year low of $373.04 and a 1-year high of $1,057.07. The firm has a market capitalization of $485.28 billion, a price-to-earnings ratio of 52.44, a P/E/G ratio of 1.96 and a beta of 1.59.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. The firm had revenue of $17.41 billion during the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The business's revenue for the quarter was up 22.2% on a year-over-year basis. During the same period last year, the company earned $4.25 earnings per share. On average, analysts predict that Caterpillar Inc. will post 24.64 earnings per share for the current 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. The ex-dividend date is Monday, July 20th. This represents a $6.52 annualized dividend and a yield of 0.6%. This is an increase from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's dividend payout ratio is 30.06%.

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.

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