Moloney Securities Asset Management LLC has increased its stake in Caterpillar Inc. (NYSE: CAT) by 9.5% during the second quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). The institutional investor now holds 998 shares of the industrial products company following the acquisition of an additional 87 shares. At the end of this reporting period, Moloney’s holdings in Caterpillar were valued at approximately $387,000.
A number of other institutional investors have also adjusted their positions in Caterpillar. Notably, Catalyst Capital Advisors LLC increased its stake by an impressive 72.1%, now owning 907 shares valued at $352,000 after purchasing 380 shares. Similarly, Carnegie Investment Counsel raised its stake by 38.4%, resulting in ownership of 3,365 shares worth $1.3 million. Meanwhile, CAP Partners LLC and FSM Wealth Advisors LLC also boosted their stakes by 3.5% and 35.0%, respectively.
Overall, hedge funds and institutional investors now own approximately 70.98% of Caterpillar’s stock.
Analysts Project Growth for Caterpillar
Several analysts have recently provided optimistic forecasts for Caterpillar’s stock. On October 14, 2023, JPMorgan Chase & Co. raised its target price for Caterpillar shares from $505.00 to $650.00, assigning an “overweight” rating. Melius Research upgraded its assessment from a “hold” to a “strong buy,” setting a price target of $500.00. Further endorsements came from Jefferies Financial Group, which boosted its target from $500.00 to $570.00.
Caterpillar currently holds an average rating of “Moderate Buy” with a consensus target price of $518.19, according to data from MarketBeat.com.
Insider Trading Activity
In related news, insider trading has shown significant activity. Susan C. Schwab, a company director, sold 2,324 shares on August 15 at an average price of $410.00, totaling approximately $952,840.00. Following this transaction, Schwab’s ownership dropped to 6,917 shares, valued at about $2.8 million. Another insider, Jason Kaiser, sold 2,161 shares on August 11 for about $902,649.70. Overall, in the past ninety days, insiders have sold a total of 55,985 shares, worth around $25.6 million.
As of now, insiders own approximately 0.33% of Caterpillar’s total stock.
Caterpillar Stock Performance and Financial Overview
Shares of Caterpillar opened at $522.13 on October 13, 2023. The company has a market capitalization of $244.61 billion, with a price-to-earnings (P/E) ratio of 26.56. Over the past year, Caterpillar’s stock has fluctuated between a low of $267.30 and a high of $544.99.
In its most recent quarterly earnings report, released on August 5, Caterpillar reported earnings per share (EPS) of $4.72, falling short of analyst expectations of $4.88 by $0.16. The company reported revenue of $16.57 billion, surpassing estimates of $16.14 billion. Despite these figures, revenue declined by 0.7% compared to the same quarter in the previous year.
Analysts anticipate that Caterpillar will post an EPS of $19.86 for the current fiscal year.
Dividend Declaration
Caterpillar recently announced a quarterly dividend of $1.51 per share, scheduled for payment on November 20, 2023. This dividend, which has an annualized yield of 1.2%, will benefit investors on record as of October 20, 2023. The company’s current dividend payout ratio stands at approximately 30.72%.
Caterpillar Inc. continues to be a significant player in the manufacturing of construction and mining equipment, as well as industrial engines and gas turbines globally. The company’s diverse product offerings position it well in the competitive industrial sector.
