Gerber Kawasaki Wealth & Investment Management purchased a new stake in Caterpillar Inc. (NYSE:CAT – Free Report) during the 3rd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 2,072 shares of the industrial products company’s stock, valued at approximately $1,680,000.
Several other hedge funds and other institutional investors also recently added to or reduced their stakes in CAT. BlackRock Inc. acquired a new position in shares of Caterpillar in the 2nd quarter valued at about $40,457,153,000. Bank of America Corp DE purchased a new stake in shares of Caterpillar in the second quarter worth about $5,818,150,000. Bank of New York Mellon Corp acquired a new stake in Caterpillar during the second quarter worth about $3,192,710,000. Legal & General Group Plc acquired a new stake in Caterpillar during the second quarter worth about $2,783,451,000. Finally, Ascentis Wealth Management LLC raised its position in Caterpillar by 110,539.0% during the second quarter. Ascentis Wealth Management LLC now owns 2,518,143 shares of the industrial products company’s stock valued at $2,711,772,000 after acquiring an additional 2,515,867 shares in the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.
Insider Buying and Selling
In related news, Director James C. Fish, Jr. purchased 1,000 shares of the business’s stock in a transaction that occurred on Monday, November 2nd. The stock was bought at an average price of $620.39 per share, with a total value of $620,390.00. Following the acquisition, the director owned 4,714 shares in the company, valued at $2,924,518.46. The trade was a 26.93% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Joseph Creed sold 32,401 shares of the company’s stock in a transaction on Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the transaction, the chief executive officer owned 34,555 shares of the company’s stock, valued at $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.33% of the company’s stock.
Caterpillar Price Performance
Shares of Caterpillar stock opened at $623.53 on Wednesday. The firm has a market cap of $286.62 billion, a PE ratio of 24.46, a P/E/G ratio of 1.05 and a beta of 1.65. Caterpillar Inc. has a twelve month low of $537.08 and a twelve month high of $1,073.46. The company has a quick ratio of 0.88, a current ratio of 1.42 and a debt-to-equity ratio of 1.50. The business has a 50-day moving average price of $775.16 and a 200 day moving average price of $807.33.
Caterpillar (NYSE:CAT – Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The industrial products company reported $7.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.06 by $0.14. Caterpillar had a return on equity of 59.87% and a net margin of 15.21%. The company had revenue of $20.68 billion for the quarter, compared to the consensus estimate of $20.76 billion. During the same quarter in the prior year, the business posted $4.95 earnings per share. Caterpillar’s revenue for the quarter was up 17.3% on a year-over-year basis. Sell-side analysts predict that Caterpillar Inc. will post 27.62 earnings per share for the current fiscal year.
Caterpillar Announces Dividend
The firm also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be given a dividend of $1.63 per share. The ex-dividend date is Monday, October 26th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 1.0%. Caterpillar’s dividend payout ratio (DPR) is 25.58%.
Key Caterpillar News
Here are the key news stories impacting Caterpillar this week:
- Positive Sentiment: Caterpillar is expanding engine and turbine production to meet data-center demand, a growth opportunity for its power-generation business. The company also reported a record $78 billion backlog and strong quarterly growth, although margin pressure remains a concern. Article: Caterpillar expands production of engines and turbines to meet data center demand
- Positive Sentiment: Director James Fish bought 1,000 shares for about $620,000, increasing his holdings by roughly 27%. The insider purchase may signal confidence in Caterpillar’s prospects. Article: Caterpillar director share purchase
- Positive Sentiment: Freedom Capital Markets maintained a Buy rating after lowering its price target to $800 from $980, still indicating substantial potential upside from the price cited in the report. Article: Freedom Capital Markets price target
- Neutral Sentiment: Caterpillar completed its acquisition of long-time dealer John Fabick Tractor Company, adding its Missouri, Illinois, Wisconsin and Michigan Upper Peninsula operations to the company’s dealer network. The deal may strengthen regional customer support, though its near-term financial impact is unclear. Article: Caterpillar acquires Fabick Cat dealership
- Negative Sentiment: DA Davidson cut its price target to $685 from $882 and kept a Neutral rating, citing valuation concerns despite improving demand. The debate over whether Caterpillar’s premium valuation and margin pressures are justified could weigh on sentiment. Article: Caterpillar target cut and margin concerns
Wall Street Analysts Forecast Growth
CAT has been the subject of a number of analyst reports. President Capital initiated coverage on Caterpillar in a report on Friday, September 18th. They issued a “buy” rating and a $999.00 price target for the company. UBS Group dropped their price objective on shares of Caterpillar from $925.00 to $750.00 and set a “neutral” rating on the stock in a research note on Monday, October 26th. Robert W. Baird set a $970.00 target price on shares of Caterpillar in a report on Wednesday, August 5th. Freedom Broker decreased their target price on shares of Caterpillar from $980.00 to $800.00 and set a “buy” rating for the company in a research note on Monday. Finally, JPMorgan Chase & Co. lowered their price target on shares of Caterpillar from $1,100.00 to $1,000.00 and set an “overweight” rating on the stock in a report on Friday, October 30th. Fifteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $898.25.
Check Out Our Latest Report on CAT
Caterpillar Profile
Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.
Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.
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