Caterpillar Inc. $CAT Stock: Fifth Third Bancorp Grows Position

Fifth Third Bancorp grew its stake in shares of Caterpillar Inc. (NYSE:CAT) by 0.6% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 599,504 shares of the industrial products company’s stock after buying an additional 3,558 shares during the period. Caterpillar accounts for 0.8% of Fifth Third Bancorp’s portfolio, making the stock its 23rd biggest holding. Fifth Third Bancorp owned 0.13% of Caterpillar worth $486,072,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Diversify Advisory Services LLC bought a new stake in Caterpillar in the 2nd quarter worth approximately $5,372,000. D.B. Root & Company LLC bought a new stake in shares of Caterpillar in the 2nd quarter worth about $850,000. Dearborn Partners LLC purchased a new stake in shares of Caterpillar during the 2nd quarter valued at about $20,293,000. B. Metzler seel. Sohn & Co. AG raised its position in Caterpillar by 4.3% during the second quarter. B. Metzler seel. Sohn & Co. AG now owns 62,731 shares of the industrial products company’s stock valued at $66,802,000 after purchasing an additional 2,590 shares during the period. Finally, Van Hulzen Asset Management LLC raised its holdings in Caterpillar by 85.3% during the 2nd quarter. Van Hulzen Asset Management LLC now owns 2,809 shares of the industrial products company’s stock valued at $2,991,000 after buying an additional 1,293 shares during the period. Institutional investors own 70.98% of the company’s stock.

Insider Transactions at Caterpillar

In related news, Director James C. Fish, Jr. purchased 1,000 shares of the firm’s stock in a transaction on Monday, November 2nd. The stock was acquired at an average price of $620.39 per share, with a total value of $620,390.00. Following the completion of the acquisition, the director owned 4,714 shares in the company, valued at approximately $2,924,518.46. This represents a 26.93% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Joseph Creed sold 32,401 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 0.33% of the company’s stock.

Caterpillar Price Performance

Shares of CAT stock opened at $601.75 on Thursday. The company has a market cap of $275.36 billion, a P/E ratio of 23.61, a PEG ratio of 1.01 and a beta of 1.65. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.42 and a quick ratio of 0.88. The stock’s 50-day moving average is $748.35 and its 200 day moving average is $805.55. Caterpillar Inc. has a 1-year low of $537.08 and a 1-year high of $1,073.46.

Caterpillar (NYSE:CAT) last released its quarterly earnings results on Thursday, October 29th. The industrial products company reported $7.20 earnings per share for the quarter, beating analysts’ consensus estimates of $7.06 by $0.14. Caterpillar had a net margin of 15.21% and a return on equity of 59.87%. The business had revenue of $20.68 billion for the quarter, compared to analysts’ expectations of $20.76 billion. During the same period last year, the business earned $4.95 EPS. The company’s revenue was up 17.3% compared to the same quarter last year. Research analysts predict that Caterpillar Inc. will post 27.38 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be issued a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Monday, October 26th. Caterpillar’s dividend payout ratio is currently 25.58%.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on CAT. Freedom Broker cut their price objective on shares of Caterpillar from $980.00 to $800.00 and set a “buy” rating on the stock in a research report on Monday, November 2nd. President Capital began coverage on Caterpillar in a research report on Friday, September 18th. They issued a “buy” rating and a $999.00 price objective on the stock. Morgan Stanley cut their price target on shares of Caterpillar from $915.00 to $675.00 and set an “equal weight” rating on the stock in a report on Friday, October 30th. Zacks Research downgraded shares of Caterpillar from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Finally, Royal Bank Of Canada dropped their price target on Caterpillar from $897.00 to $722.00 and set a “sector perform” rating on the stock in a research report on Friday, October 30th. Fifteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $898.25.

Caterpillar News Roundup

Investors following CAT have been watching these news items:

• Positive Sentiment: Evercore ISI kept its Outperform rating and sees about 40% upside, although it lowered its price target to $833 from $1,045. Read More.
• Neutral Sentiment: Bank of America maintained its Buy rating but warned Caterpillar’s valuation could face further pressure if uncertainty around data-center investment persists. The bank noted the earnings multiple had declined from about 30 to 17. Read More.
• Negative Sentiment: Valuation-focused commentary questions whether Caterpillar’s long-term share gains have outpaced the cash flows supporting them, which could limit upside if earnings expectations or investor appetite weaken. Read More.

Caterpillar Profile

Caterpillar Inc. is a global manufacturer of construction and mining equipment, engines, turbines, and related products and services. Its offerings include earthmoving and material-handling machines, diesel and natural gas engines, power-generation systems, and equipment and technologies used in mining and transportation. The company’s products are commonly sold under the Cat brand. Caterpillar serves customers in markets around the world through a network of independent dealers. Its businesses also provide parts, maintenance, equipment rental, and other support services, as well as financing and insurance through its financial services operations.