Legato Capital Management LLC Buys Shares of 934 Caterpillar Inc. $CAT

Legato Capital Management LLC bought a new stake in Caterpillar Inc. (NYSE:CAT) during the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 934 shares of the industrial products company’s stock, valued at approximately $535,000.

A number of other hedge funds have also recently added to or reduced their stakes in the stock. Plancorp LLC increased its stake in Caterpillar by 0.5% in the fourth quarter. Plancorp LLC now owns 2,777 shares of the industrial products company’s stock valued at $1,591,000 after purchasing an additional 15 shares in the last quarter. BlueStem Wealth Partners LLC increased its stake in Caterpillar by 1.3% in the fourth quarter. BlueStem Wealth Partners LLC now owns 1,192 shares of the industrial products company’s stock valued at $683,000 after purchasing an additional 15 shares in the last quarter. KDT Advisors LLC increased its stake in Caterpillar by 2.3% in the fourth quarter. KDT Advisors LLC now owns 657 shares of the industrial products company’s stock valued at $376,000 after purchasing an additional 15 shares in the last quarter. Revolve Wealth Partners LLC increased its position in shares of Caterpillar by 2.4% during the fourth quarter. Revolve Wealth Partners LLC now owns 681 shares of the industrial products company’s stock worth $390,000 after acquiring an additional 16 shares in the last quarter. Finally, Security Financial Services INC. increased its position in shares of Caterpillar by 0.4% during the fourth quarter. Security Financial Services INC. now owns 3,609 shares of the industrial products company’s stock worth $2,068,000 after acquiring an additional 16 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Stock Up 3.3%

Caterpillar stock opened at $909.25 on Wednesday. Caterpillar Inc. has a fifty-two week low of $339.50 and a fifty-two week high of $931.35. The stock has a market cap of $418.79 billion, a PE ratio of 45.26, a price-to-earnings-growth ratio of 1.74 and a beta of 1.63. The firm’s 50-day simple moving average is $799.63 and its 200 day simple moving average is $696.43. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, topping the consensus estimate of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business had revenue of $17.42 billion for the quarter, compared to analysts’ expectations of $16.53 billion. During the same period in the previous year, the company earned $4.25 earnings per share. The firm’s revenue for the quarter was up 22.2% compared to the same quarter last year. Research analysts predict that Caterpillar Inc. will post 24.67 EPS for the current fiscal year.

Caterpillar Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, May 19th. Investors of record on Monday, April 20th were issued a dividend of $1.51 per share. The ex-dividend date was Monday, April 20th. This represents a $6.04 annualized dividend and a yield of 0.7%. Caterpillar’s payout ratio is 30.06%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the stock. Morgan Stanley set a $915.00 target price on shares of Caterpillar and gave the stock an “equal weight” rating in a research report on Friday, May 1st. Weiss Ratings reissued a “buy (b-)” rating on shares of Caterpillar in a research report on Friday, May 8th. HSBC boosted their target price on shares of Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. Oppenheimer set a $980.00 target price on shares of Caterpillar and gave the stock an “outperform” rating in a research report on Friday, May 1st. Finally, Wolfe Research boosted their target price on shares of Caterpillar from $670.00 to $750.00 and gave the stock an “outperform” rating in a research report on Tuesday, March 31st. Sixteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $923.14.

Insider Buying and Selling at Caterpillar

In related news, insider Lange Bob De sold 24,222 shares of the business’s stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the transaction, the insider directly owned 86,029 shares in the company, valued at approximately $79,397,884.68. The trade was a 21.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jason Kaiser sold 5,642 shares of the business’s stock in a transaction dated Monday, May 4th. The stock was sold at an average price of $883.03, for a total transaction of $4,982,055.26. Following the transaction, the insider owned 9,594 shares in the company, valued at approximately $8,471,789.82. This trade represents a 37.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 98,273 shares of company stock valued at $89,439,960 in the last quarter. 0.33% of the stock is owned by company insiders.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Market coverage noted that Caterpillar flashed a buy signal as the S&P 500, Nasdaq and Russell 2000 hit new highs, reflecting broad strength in industrial and AI-related names. Dow Jones Futures Rise After S&P 500, Nasdaq Hit Highs; 5 AI Stocks In Buy Areas
• Positive Sentiment: Investors are focusing on a “hidden AI revenue stream” in Caterpillar’s financials: about $10.2 billion in generator sales to data centers last year, which supports the idea that CAT benefits from AI buildout even though it is not a pure-play AI stock. A $10.2 Billion Hidden AI Revenue Stream Most Investors Are Missing
• Neutral Sentiment: Another article discussed Caterpillar in the context of the Iran war and whether it is a buy, sell or hold, but it did not add a clear new catalyst for the stock. Is Caterpillar a Buy, Sell, or Hold Amid the Iran War?
• Neutral Sentiment: Clinch Resources’ purchase of a Caterpillar highwall miner is a small equipment-order headline that may support sentiment around CAT’s mining product line, but it is not likely to move the stock on its own. Clinch Resources acquires first Caterpillar highwall miner for West Virginia met coal operation

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.