Norges Bank Buys $2.17 Billion Caterpillar Stake as Jefferies Lifts Target to $700
Norges Bank initiated a new CAT position valued at $2.17 billion in Q2, while Generali Asset Management cut its stake by 3% to 42,889 shares worth $20.46 million in Q3. Jefferies boosted its price target from $570 to $700 and Robert W. Baird raised its target to $680 in November, reflecting elevated analyst optimism on earnings and infrastructure demand.
1. Institutional Holdings Adjusted
Generali Asset Management SPA SGR trimmed its position in Caterpillar by 3.0% during the third quarter, selling 1,306 shares and ending the period with 42,889 shares valued at $20.46 million. Norges Bank initiated a new stake in the second quarter valued at $2.17 billion. Groupe la Francaise expanded its stake by 82.0% in the second quarter, acquiring an additional 12,278 shares to hold 27,246 shares worth $10.82 million. Trivium Point Advisory LLC more than doubled its position in the same period, adding 1,099 shares to reach 1,926 shares valued at $0.75 million. In the third quarter, Union Bancaire Privee UBP SA boosted its holdings by 155.9%, purchasing 28,773 shares to total 47,231 shares valued at $21.01 million. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its first‐quarter position by 9.9%, acquiring 7,125 shares to reach 78,947 shares worth $26.04 million. Institutional investors and hedge funds now own 70.98% of the outstanding shares.
2. Insider Transactions Reflect Divergent Views
Insider selling has been significant over the past 90 days, with company insiders offloading 61,895 shares worth $34.01 million, representing 0.33% of total shares outstanding. On November 5, insider Lange Bob De sold 14,638 shares for proceeds of $8.23 million, reducing his holding by 15.43% to 80,209 shares valued at $45.11 million. The following day, Director David Maclennan purchased 300 shares for $170,658, increasing his stake by 3.92% to 7,947 shares valued at $4.52 million.
3. Analysts Lift Targets and Ratings
Jefferies Financial Group raised its target from $570 to $700 and maintained a buy rating. Weiss Ratings reconfirmed a buy. Argus upped its target from $460 to $625 with a buy recommendation. Oppenheimer increased its objective from $513 to $645 and assigned an outperform rating. Robert W. Baird raised its target from $612 to $680 with an outperform stance. Of the 24 analysts covering the stock, 3 rate it Strong Buy, 15 Buy, 5 Hold and 1 Sell, resulting in a consensus Moderate Buy and an average target of $616.
4. Q3 Results and Dividend Policy
In the third quarter, Caterpillar reported adjusted EPS of $4.95, beating consensus by $0.43, and revenue of $17.64 billion, exceeding expectations by $0.92 billion and marking a 9.5% year-over-year increase. The net margin was 14.34% and return on equity reached 47.16%. The board declared a quarterly dividend of $1.51 per share, payable February 19 to holders of record January 20, implying an annualized payout of $6.04 and a dividend payout ratio of 31.01%.