Cullinan Associates Inc. has reduced its holdings in Caterpillar Inc. (NYSE: CAT) by 6.0% during the third quarter of 2023, according to a recent filing with the Securities and Exchange Commission (SEC). Following the sale of 2,141 shares, the investment firm now owns 33,525 shares of the industrial products company, representing approximately 1.0% of its total portfolio. The value of these holdings stands at $15,997,000, making Caterpillar the 24th largest position in Cullinan Associates’ investment strategy.
Several other institutional investors have also adjusted their stakes in Caterpillar recently. Notably, Valeo Financial Advisors LLC significantly increased its stake by an astonishing 36,842.1% in the second quarter, now holding 7,299,751 shares valued at approximately $2.83 billion. Similarly, Norges Bank initiated a new position in Caterpillar worth $2.17 billion, while Assenagon Asset Management S.A. raised its holdings by 546.6%, acquiring an additional 712,711 shares for a total valuation of $327.3 million.
Marshall Wace LLP also expanded its position by 425.2%, while Voya Investment Management LLC boosted its stake by 36.9%, now owning 1,777,589 shares valued at about $848.2 million. Currently, institutional investors and hedge funds collectively own approximately 70.98% of Caterpillar’s stock.
Caterpillar Stock Performance and Dividends
As of Wednesday, shares of Caterpillar opened at $636.39, reflecting a market capitalization of $297.82 billion. The stock has a price-to-earnings (P/E) ratio of 32.67 and a price-to-earnings-growth (PEG) ratio of 2.44, alongside a beta of 1.57. Financial ratios indicate a debt-to-equity ratio of 1.34, a current ratio of 1.38, and a quick ratio of 0.86. Over the past year, Caterpillar’s stock has fluctuated between a low of $267.30 and a high of $644.59.
In addition to the stock performance, Caterpillar announced a quarterly dividend of $1.51 per share, scheduled for payment on February 19, 2024. Shareholders on record as of January 20, 2024 will qualify for this payout, representing an annualized dividend of $6.04 with a yield of 0.9%. The company’s current payout ratio stands at 31.01%.
Analyst Insights and Insider Transactions
Caterpillar has garnered attention from several research analysts recently. Wolfe Research raised its price target on the stock from $470.00 to $670.00 while maintaining an “outperform” rating. Erste Group Bank upgraded Caterpillar from a “hold” to a “buy” rating. Other analysts, including Argus and DA Davidson, have also increased their price targets, suggesting a consensus rating of “Moderate Buy” with an average price target of $619.70.
Insider trading activity recently revealed that Andrew R. J. Bonfield, Chief Financial Officer, sold 10,000 shares on December 31, 2023, at an average price of $575.06, totaling approximately $5.75 million. Following this transaction, Bonfield holds 45,460 shares valued at around $26.14 million. Conversely, Director David Maclennan purchased 300 shares at an average cost of $568.86 per share, increasing his ownership in the company.
In summary, while Cullinan Associates has made adjustments to its investment in Caterpillar, the company’s stock continues to attract significant institutional interest, reflected in both recent share purchases and positive analyst ratings. As Caterpillar prepares for its upcoming dividend payment and navigates market fluctuations, its solid financial foundation and growth potential remain evident.
