Indiana Trust & Investment Management Co has raised its holdings in Caterpillar Inc. (NYSE: CAT) by 11.7% during the third quarter of 2023. This increase, documented in the company’s recent Form 13F filing with the Securities and Exchange Commission, brings Indiana Trust’s total shares in the industrial products giant to 8,434. The additional 885 shares acquired during the period now make Caterpillar approximately 1.2% of Indiana Trust’s investment portfolio, positioning it as the firm’s 16th largest investment.
As of the latest SEC filing, Indiana Trust’s holdings in Caterpillar are valued at approximately $4.02 million. The company is not alone in its investment strategy, as several other institutional investors have also adjusted their stakes in Caterpillar.
Fisher Asset Management LLC increased its position by 2.3% in the second quarter, now owning 9,418,321 shares, valued at $3.66 billion after purchasing an additional 208,196 shares. Similarly, Valeo Financial Advisors LLC dramatically expanded its holdings by 36,842.1%, now owning 7,299,751 shares worth $2.83 billion after acquiring 7,279,991 additional shares. Norges Bank also entered the fray, acquiring a new stake valued at approximately $2.17 billion during the same quarter.
Meanwhile, UBS AM, a distinct business unit of UBS Asset Management Americas LLC, raised its holdings by 6.7% in the first quarter, now owning 4,204,445 shares worth $1.39 billion. Charles Schwab Investment Management Inc. similarly grew its stake by 1.0%, holding 3,337,915 shares valued at around $1.30 billion.
Currently, institutional investors and hedge funds collectively own 70.98% of Caterpillar’s stock.
Insider Transactions and Stock Performance
In related news, insider Anthony D. Fassino sold 8,184 shares of Caterpillar on November 10, 2023, at an average price of $570.18, resulting in a transaction valued at $4.67 million. Following this sale, Fassino’s remaining shares total 41,512, valued at $23.67 million. This sale reflects a 16.47% reduction in Fassino’s position.
Another insider, Bob De Lange, sold 14,638 shares on November 5, 2023, at an average price of $562.36, for a total of $8.23 million. De Lange now directly holds 80,209 shares valued at approximately $45.11 million after a 15.43% decrease in his ownership.
In the last quarter, insiders sold a total of 61,895 shares, valued at $34.01 million. Corporate insiders now own 0.33% of Caterpillar’s stock.
Despite these insider activities, Caterpillar’s stock experienced a slight decline of 0.1% following the release of its quarterly earnings data on November 3, 2023. The company reported earnings per share of $4.95, surpassing analysts’ expectations of $4.52 by $0.43. Revenue for the quarter reached $17.64 billion, significantly above the anticipated $16.72 billion. This represents a year-over-year revenue increase of 9.5%, though it is a decrease from the previous year’s earnings per share of $5.17.
Caterpillar’s Dividend and Analyst Ratings
Caterpillar has also announced a quarterly dividend of $1.51 per share, set to be paid on February 19, 2024, to investors of record as of January 20, 2024. This dividend represents an annualized total of $6.04, yielding approximately 1.0% based on the current share price. The company’s dividend payout ratio stands at 31.01%.
Analysts have been active in adjusting their ratings for Caterpillar shares. Truist Financial maintained a “buy” rating and increased its price target from $582.00 to $729.00. Morgan Stanley raised its target from $380.00 to $395.00, while Barclays increased its price objective from $485.00 to $555.00. UBS Group also raised its target price from $506.00 to $581.00. Bank of America’s target rose from $594.00 to $650.00.
Currently, three analysts rate Caterpillar with a “Strong Buy,” fifteen with a “Buy,” five with a “Hold,” and one with a “Sell,” leading to a consensus rating of “Moderate Buy” with an average target price of $616.00.
Caterpillar Inc. is a globally recognized manufacturer of construction and mining equipment, as well as diesel and natural gas engines. Its diverse product range includes earthmoving machines and power generation products. The company also provides extensive aftermarket services, including maintenance and repair, across various industrial sectors.
For further insights into Caterpillar’s performance and other institutional holdings, interested parties can explore the latest 13F filings and insider transactions through financial news platforms.
