American National Bank has increased its holdings in Caterpillar Inc., a leading industrial products company, by 2.3% in the second quarter of this year, according to its filing with the Securities & Exchange Commission. The institutional investor now owns 29,436 shares of Caterpillar’s stock after purchasing an additional 653 shares during the quarter. This makes Caterpillar account for 1.2% of American National Bank’s portfolio, ranking it as the bank’s 27th largest position. Based on the most recent SEC filing, the value of American National Bank’s holdings in Caterpillar is $7,243,000.
Caterpillar recently announced its quarterly earnings results on August 1st. The company reported earnings per share of $5.55 for the quarter, surpassing analysts’ consensus estimates of $4.57 by $0.98. It generated revenue of $17.30 billion in the same period compared to analysts’ estimated revenue of $16.46 billion. This indicates a significant increase in revenue compared to the same quarter last year as well – up by 21.4%. Furthermore, Caterpillar reported a return on equity of 55.93% and a net margin of 12.91% for the quarter.
In terms of stock transactions by insiders, Lange Bob De sold 20,000 shares of Caterpillar stock at an average price of $275 per share on August 1st, resulting in a total transaction value of $5,500,000. After the sale was completed, De now holds 53,671 shares valued at approximately $14,759,525.
Another insider named Anthony D.Fassino sold 2,923 shares on August 29th at an average price of $279 per share for a total transaction value of $815,517.
Overall within the last quarter alone, insiders have sold a total of 54,918 shares valued at $15,299,870. Insiders currently hold 0.33% of the company’s stock.
Caterpillar Inc. is expected to post earnings per share of 19.82 for the current fiscal year, according to sell-side analysts.
These recent developments in American National Bank’s holdings and Caterpillar’s financial performance provide valuable insights into the company’s growth trajectory and its attractiveness as an investment option for institutional investors like American National Bank.
Updated on: 19/09/2023
Debt to equity ratio: Buy
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
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Caterpillar Inc.’s Growing Popularity Among Hedge Funds and Institutional Investors
Caterpillar Inc. continues to attract attention from hedge funds and institutional investors, as recent data shows a surge in their holdings of the industrial products company’s stock. According to reports, Horan Securities Inc. increased its stake in Caterpillar by an astonishing 678.6% during the first quarter, now owning 109 shares worth $25,000 after acquiring an additional 95 shares.
Furthermore, West Financial Advisors LLC also jumped on the opportunity and bought a new stake in Caterpillar during the second quarter. While the exact value of their investment remains undisclosed, it is estimated to be around $25,000. This move suggests that with its strong performance and potential growth prospects, many investors are looking to benefit from Caterpillar’s success.
Atlas Capital Advisors LLC also showed significant interest in Caterpillar during the first quarter. They witnessed a remarkable increase of 272.4% in their holdings and now own 108 shares valued at $25,000 after purchasing an additional 79 shares.
Kayne Anderson Rudnick Investment Management LLC is another substantial investor that significantly raised its stake in Caterpillar during the first quarter by a staggering 730.8%. Currently, they hold 108 shares valued at $25,000 after acquiring an additional 95 shares.
TFC Financial Management Inc., not wanting to miss out on this lucrative opportunity either, joined in and raised its stake in Caterpillar by a remarkable 470.8% during the first quarter. Today they own 137 shares valued at $31,000 after acquiring an additional 113 shares.
These impressive numbers highlight the growing popularity of investing in Caterpillar among institutional investors and hedge funds alike. They now collectively account for over two-thirds (69.20%) of the company’s outstanding stock.
Looking at CAT stock performance on Tuesday morning when it opened at $280.88 per share, it becomes apparent why these investors have taken such an interest in Caterpillar. The company’s stock has demonstrated a significant increase over the past year, with a 1-year low of $160.60 and a 1-year high of $293.88.
Caterpillar’s financial position also reveals positive numbers, with a current ratio of 1.33 and a quick ratio of 0.83, suggesting the company is well-equipped to meet its short-term obligations. Additionally, its debt-to-equity ratio stands at 1.26, indicating that Caterpillar relies moderately on borrowed funds for its operations.
With a market capitalization of $143.28 billion and a P/E ratio of 17.48, Caterpillar appears to be in a strong position in the market. Moreover, its price-to-earnings growth (P/E/G) ratio of 1.17 suggests that investors are optimistic about the company’s future growth potential.
Analysts have also weighed in on CAT shares, providing insight into their performance and prospects. Tigress Financial raised their target price from $266.00 to $282.00, while Barclays increased their price target from $225.00 to $250.00 and maintained an “equal weight” rating for the stock.
JPMorgan Chase & Co.’s analysts were even more optimistic, raising their price target from $275.00 to an impressive $315.00 and giving Caterpillar an “overweight” rating due to positive indicators from the company’s performance.
The Goldman Sachs Group also expressed confidence in Caterpillar’s future by raising their price target from $274.00 to match JPMorgan’s figure of $315.00 and issuing a “buy” rating for the stock.
However, not all analysts share this sanguinity toward Caterpillar’s prospects as some have issued sell ratings for the stock. Nevertheless, according to Bloomberg.com, on average, analysts rate CAT stock as a “Hold” with an average price target of $267.00.
In conclusion, Caterpillar Inc.’s recent surge in interest from hedge funds and institutional investors indicates a positive perception of the company’s growth potential and solid financial standing. With an impressive stock performance, robust financial ratios, and endorsements from analysts, it appears that Caterpillar is poised for continued success in the market. Investors would do well to keep an eye on this industry leader as it navigates its way forward.