SJS Investment Consulting Inc. has significantly increased its stake in Caterpillar Inc. during the third quarter, raising its holdings by 73.2%. This move brings SJS’s total ownership to 2,319 shares, valued at approximately $1,107,000 as of the latest reporting period. The shift underscores a growing confidence in Caterpillar, a leading manufacturer in the industrial products sector.
Other prominent investors have also made noteworthy adjustments to their positions in Caterpillar (NYSE: CAT). For instance, Fisher Asset Management LLC enhanced its stake by 2.3% in the second quarter, now holding 9,418,321 shares worth around $3.66 billion after acquiring an additional 208,196 shares. Valeo Financial Advisors LLC exhibited remarkable growth, increasing its holdings by an astounding 36,842.1%, bringing its total to 7,299,751 shares valued at roughly $2.83 billion.
Further institutional interest is reflected in Norges Bank’s new position, valued at approximately $2.17 billion, while UBS Asset Management Americas LLC grew its holdings by 6.7% to own 4,204,445 shares, worth about $1.39 billion. Charles Schwab Investment Management Inc. also increased its position by 1.0%, now holding 3,337,915 shares valued at around $1.30 billion. Collectively, institutional and hedge fund investors control 70.98% of Caterpillar’s stock.
In insider trading news, Jason Kaiser, an executive at Caterpillar, sold 10,707 shares on November 11 at an average price of $563.60, totaling $6,034,465.20. Following the sale, his ownership dropped by 55.32%, leaving him with 8,649 shares valued at approximately $4.87 million. Similarly, CFO Andrew R. J. Bonfield sold 10,000 shares on December 1 for about $5.71 million, reducing his stake by 15.28%.
Analysts have been monitoring Caterpillar’s stock closely. On October 22, the Royal Bank of Canada initiated coverage with a “sector perform” rating and a target price of $560.00. Morgan Stanley subsequently revised its price objective from $380.00 to $395.00, advising an “underweight” rating. Meanwhile, Bank of America raised its target from $594.00 to $650.00, recommending a “buy.” Oppenheimer and Evercore ISI also increased their price targets significantly.
As of now, the stock receives an average rating of “Moderate Buy,” with a consensus price target of $616.00. Market analysts emphasize that three research firms rated the stock as a Strong Buy, while the majority assigned it a Buy or Hold rating.
Caterpillar’s stock performance has been strong, opening at $573.03 on the most recent trading day. The company boasts a market capitalization of $268.17 billion, with a price-to-earnings ratio of 29.42 and a price-to-earnings-growth ratio of 2.69. Over the last twelve months, the stock has fluctuated between a low of $267.30 and a high of $627.50.
In its previous earnings report on November 3, Caterpillar announced earnings per share of $4.95, surpassing analyst expectations of $4.52. The firm reported revenue of $17.64 billion, exceeding estimates of $16.72 billion, with a net margin of 14.34% and a return on equity of 47.16%.
Looking ahead, Caterpillar has announced a quarterly dividend of $1.51 per share, payable on February 19, 2024, to shareholders of record as of January 20, 2024. This dividend represents an annualized yield of 1.1%, with a payout ratio of 31.01%.
Caterpillar Inc. is a global leader in manufacturing construction and mining equipment, along with diesel and natural gas engines. The company’s extensive product line serves diverse industries, including heavy construction, mining, energy, and transportation, and it offers comprehensive aftermarket support and services.
For more insights on Caterpillar’s financials and investment opportunities, investors can consult resources like Holdings Channel for the latest filings and insider trades.
