SJS Investment Consulting Inc. has significantly increased its holdings in Caterpillar Inc. by 73.2% during the third quarter, according to data from Holdings Channel. The investment firm now owns 2,319 shares of the industrial products company, having acquired an additional 980 shares in this period. At the close of this reporting cycle, SJS Investment’s stake in Caterpillar was valued at approximately $1,107,000.
Other institutional investors have also been active in reshaping their positions in Caterpillar. For example, Fisher Asset Management LLC raised its stake by 2.3% in the second quarter, now holding 9,418,321 shares worth $3.66 billion after purchasing an additional 208,196 shares. Valeo Financial Advisors LLC made a more dramatic move, increasing its shareholding by an astounding 36,842.1%, resulting in ownership of 7,299,751 shares valued at around $2.83 billion. Additionally, Norges Bank entered the scene with a new position valued at about $2.17 billion during the same quarter.
UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC also expanded its stake by 6.7% in the first quarter, now owning 4,204,445 shares worth approximately $1.39 billion. Charles Schwab Investment Management Inc. increased its position by 1.0%, holding 3,337,915 shares valued at $1.30 billion. Collectively, hedge funds and institutional investors own about 70.98% of Caterpillar’s stock.
Insider trading activity has also been notable. On November 11, insider Jason Kaiser sold 10,707 shares at an average price of $563.60, totaling $6,034,465.20. Following this sale, Kaiser retained ownership of 8,649 shares, valued at approximately $4.87 million, reflecting a 55.32% decrease in his holdings. Chief Financial Officer Andrew R. J. Bonfield also sold 10,000 shares on December 1, at an average price of $571.44, amounting to $5,714,400. Bonfield’s remaining 55,460 shares are valued at about $31.69 million, a 15.28% reduction in his ownership.
In total, insiders sold 61,895 shares worth $34 million in the last 90 days, with company insiders now owning only 0.33% of the stock.
Analysts have weighed in on Caterpillar’s performance. On October 22, the Royal Bank of Canada initiated coverage on Caterpillar shares with a “sector perform” rating and a price target of $560.00. Morgan Stanley adjusted its price target from $380.00 to $395.00, maintaining an “underweight” rating on December 10. Conversely, Bank of America upgraded its target from $594.00 to $650.00, giving Caterpillar a “buy” rating on October 30. Oppenheimer also raised its target to $645.00 with an “outperform” rating, while Evercore ISI increased its price objective to $630.00.
Overall, the consensus among analysts includes three “Strong Buy” ratings, fifteen “Buy” ratings, five “Hold” ratings, and one “Sell” rating, with an average rating of “Moderate Buy” and a consensus price target of $616.00.
Caterpillar’s stock performance has been robust, opening at $573.03 recently, with a market capitalization of $268.17 billion. The company has reported a price-to-earnings ratio of 29.42 and a price-to-earnings-growth ratio of 2.69. The stock has fluctuated between a 12-month low of $267.30 and a high of $627.50.
Caterpillar recently announced that it would pay a quarterly dividend of $1.51 per share on February 19, with stockholders of record on January 20 eligible for this payment. This represents an annualized dividend yield of 1.1%, with a payout ratio of 31.01%.
Founded as a global manufacturer of construction and mining equipment, Caterpillar Inc. has a diverse product portfolio that includes earthmoving machines, diesel engines, and industrial turbines. The company serves various industries, providing equipment and integrated technology solutions while also offering aftermarket parts and support services.
For comprehensive insights and updates on Caterpillar, interested parties can visit HoldingsChannel.com for the latest 13F filings and insider trades.
