Posted on May 29, 2023
Caterpillar Inc., a leading industrial products company, has been in the news lately, receiving attention from investors and the media. The company’s most recent disclosure with the Securities and Exchange Commission (SEC) reveals that it has acquired new positions under FDx Advisors Inc.
FDx Advisors Inc., a well-known player in the financial market, acquired 985 shares of Caterpillar’s stock worth $236,000 during Q4 of 2022. It is intriguing to note that such an acquisition comes amidst increased demand for construction and mining equipment, diesel engines, natural gas engines, and diesel-electric locomotives.
Caterpillar operates through five segments: Construction Industries, Resource Industries, Energy and Transportation, Financial Products, and All Other. The company’s diverse portfolio positions it as a top-performing industrial giant with substantial revenue streams throughout its various business platforms.
Caterpillar’s market cap stands at an impressive $108.07 billion on the New York Stock Exchange (NYSE) CAT where its shares opened at $209.70 on Thursday. The company’s Price-to-Earnings ratio sits at a promising 15.50 while its P/E/G ratio is below average at 1.01% — indicating strong profitability margins in recent years.
The financials paint an impressive picture for this industrious powerhouse considering its one-year high at $266.04 with a one-year low standing at $160.60 – representing significant fluctuations in stock prices over time.
One factor that could have warranted FDx Advisors’ stake on Caterpillar’s stocks is that the company boasts two of the world’s largest engines- namely MaK™ M 43 C engine platform by Caterpillar Marine Power Systems powering some of the most enormous ships globally and Cat® engines designed to power heavy-duty machines found in many industries worldwide.
Another crucial aspect propelling Caterpillar forward is their product design strategy geared towards reducing emissions and increasing fuel efficiency. Caterpillar has continually instituted environmentally-friendly techniques in its diesel-electric locomotives, gas turbines, and engines across all industries.
In conclusion, Caterpillar Inc. remains a desirable option for investors looking to leverage income in the industrial market. With a diversified portfolio and increased demand for its products globally, Caterpillar continues to drive growth while rewarding its stakeholders with consistent performances annually.
Stake Ownership and Rating Changes in Caterpillar Inc.
Caterpillar Inc. has seen changes in its stake ownership by various institutional investors and hedge funds, according to reports from May 25, 2023. State Street Corp increased its stake in the industrial products company’s shares by 0.7% during Q3 of the previous year. Meanwhile, Fisher Asset Management LLC increased its position in Caterpillar’s shares by 1.4% during Q4 of the same year followed by Charles Schwab Investment Management Inc., which lifted its position by 3.8% in Q1 of this year. Bank of New York Mellon Corp also made a purchase of 92,360 shares while Altshuler Shaham Ltd lifted its holdings by an impressive 46.8%, totalling an increase of approximately $3bn worth of shares between all four companies collectively.
Several brokerages have recently rated CAT stock with their opinions on whether it is worth purchasing or selling the stocks and have given differing views based on fundamental analysis that has been done on the market trends employed by Caterpillar Inc. William Blair has provided a “market perform” rating for the stock while UBS Group has reduced target price on CAT from $210 to $208 based on data from Bloomberg.com.
Caterpillar is well-known as a company that engages in the manufacturing sector for construction and mining equipment, diesel and natural gas engines as well as industrial gas turbines and diesel-electric locomotives. It operates through different segments including Energy & Transportation, Financial Products, Construction Industries, Resource Industries and All Other.
Last April 27th this major industrial manufacturer released information that impressed analysts when they announced their quarterly earnings with EPS (earnings per share) reaching an astonishing $4.91 compared to market consensus at $3.79, reporting higher-than-expected revenue numbers with figures totalling approximately $15 billion.
The announcement was made just before a dividend payout was released – which was paid out last May 19th – at a rate of $1.20 per share to stockholders, equivalent to an annualized dividend of $4.80 and a yield of 2.29%. The business recorded a dividend payout ratio of 35.48%, affirming the financial strength and stability the market sees in Caterpillar amidst volatility seen in the manufacturing industry in recent years.