S&CO Inc. Takes Position in Caterpillar Inc. $CAT

S&CO Inc. bought a new position in shares of Caterpillar Inc. (NYSE:CAT) during the second quarter, according to its most recent filing with the SEC. The fund bought 94,076 shares of the industrial products company’s stock, valued at approximately $100,181,000. Caterpillar accounts for 5.8% of S&CO Inc.’s investment portfolio, making the stock its largest holding.

Other large investors have also added to or reduced their stakes in the company. Diamant Asset Management Inc. grew its position in shares of Caterpillar by 68,427.2% during the 1st quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company’s stock valued at $2,224,992,000 after acquiring an additional 3,136,020 shares during the period. Ascentis Wealth Management LLC raised its holdings in shares of Caterpillar by 110,539.0% in the 2nd quarter. Ascentis Wealth Management LLC now owns 2,518,143 shares of the industrial products company’s stock worth $2,711,772,000 after purchasing an additional 2,515,867 shares during the period. Capital International Investors purchased a new position in Caterpillar in the fourth quarter valued at approximately $1,225,317,000. Northwestern Mutual Wealth Management Co. grew its holdings in Caterpillar by 573.1% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company’s stock valued at $861,947,000 after purchasing an additional 1,281,087 shares during the period. Finally, Bank of America Corp DE grew its holdings in Caterpillar by 16.0% during the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock valued at $3,860,457,000 after purchasing an additional 928,974 shares during the period. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Analysts point to solid earnings-estimate revisions and price momentum as reasons Caterpillar could continue higher. The company’s latest quarter also featured sharply higher revenue and earnings that exceeded consensus estimates, supporting the bullish case. Why Caterpillar Might Be Well Poised for a Surge
• Positive Sentiment: Caterpillar received approval in principle for a MaK dual-fuel conversion, potentially supporting its marine business and longer-term demand for lower-emission power solutions. Caterpillar Receives Approval for MaK Dual-Fuel Conversion
• Positive Sentiment: New-product exposure, including the TUL100 mini skid steer, and planned investment in an Indiana plant indicate continued attention to product development and manufacturing capacity. The company is also expanding its global headquarters, with filings showing project costs exceeding $50 million. Caterpillar Planning Indiana Plant Investment
• Neutral Sentiment: CEO Joe Creed is scheduled to participate in a Wells Fargo investor discussion on September 10. Commentary on demand trends, margins and the company’s outlook could provide a future catalyst, but no new financial guidance was announced. Caterpillar CEO to Participate in Wells Fargo Investor Discussion
• Neutral Sentiment: A multi-year sponsorship agreement with the University of Illinois raises Caterpillar’s brand visibility but is unlikely to materially affect near-term earnings. Caterpillar Illinois Sponsorship Agreement
• Negative Sentiment: At roughly 35 times earnings, Caterpillar’s valuation leaves less room for disappointment. Commentary also highlights the risk of an industrial slowdown, while a covered-call strategy article underscores investor concern about waiting through weaker conditions. Two Reasons to Like CAT and One to Stay Skeptical
• Negative Sentiment: A reported worker injury at Caterpillar’s Mapleton facility is a localized operational and reputational risk, although the available report does not indicate a broader business disruption. Worker Injured at Caterpillar Mapleton Facility

Caterpillar Trading Down 0.5%

Shares of CAT opened at $817.99 on Friday. Caterpillar Inc. has a twelve month low of $410.52 and a twelve month high of $1,073.46. The stock has a market cap of $376.01 billion, a PE ratio of 35.20, a P/E/G ratio of 1.44 and a beta of 1.60. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The business’s 50-day moving average price is $897.67 and its 200-day moving average price is $837.40.

Caterpillar (NYSE:CAT) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The business had revenue of $20.54 billion during the quarter, compared to analysts’ expectations of $19.34 billion. During the same period in the previous year, the business earned $4.72 earnings per share. The firm’s revenue was up 23.7% on a year-over-year basis. On average, equities analysts forecast that Caterpillar Inc. will post 27.14 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Monday, July 20th were issued a dividend of $1.63 per share. The ex-dividend date was Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. This is an increase from Caterpillar’s previous quarterly dividend of $1.51. Caterpillar’s dividend payout ratio (DPR) is currently 28.06%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on CAT shares. Jefferies Financial Group increased their price target on Caterpillar from $900.00 to $1,045.00 and gave the stock a “buy” rating in a research note on Friday, May 1st. Evercore reaffirmed an “outperform” rating and set a $1,103.00 price objective on shares of Caterpillar in a report on Monday, May 11th. Barclays lifted their target price on shares of Caterpillar from $800.00 to $900.00 and gave the stock an “equal weight” rating in a research note on Thursday, August 6th. Oppenheimer restated an “outperform” rating and set a $1,118.00 price target on shares of Caterpillar in a research note on Tuesday, August 4th. Finally, 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. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $995.52.

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.