Understanding the Surge in CAT Stock Purchases

Caterpillar surged to $379.3 per share this morning, but it remains 19.27% above its mean target price of $318.02. There may still be room for more downwards movement — even after today's 2.6% drop. Analysts are giving the Large-Cap Heavy Machinery stock on average rating of hold, with target prices ranging from $175.0 to $395.0 per share.

The stock has an average amount of shares sold short at 2.9%, and a short ratio of 7.04. The company's insiders own 0.2% of its outstanding shares, which indicates a strong alignment between management and shareholder interests. Finally, we also note that an average number of institutional investors are invested in the stock, with 72.5% of Caterpillar's shares being owned by this investor type.

Institutions Invested in Caterpillar

Date Reported Holder Percentage Shares Value
2023-12-31 Vanguard Group Inc 10% 48,353,370 $18,340,432,650
2023-12-31 State Street Corporation 8% 37,722,884 $14,308,289,440
2023-12-31 Blackrock Inc. 7% 33,510,465 $12,710,518,965
2023-12-31 Capital World Investors 6% 29,029,953 $11,011,060,818
2023-12-31 State Farm Mutual Automobile Insurance Co 4% 17,761,276 $6,736,851,769
2023-12-31 Geode Capital Management, LLC 2% 9,872,982 $3,744,821,952
2023-12-31 Fisher Asset Management, LLC 2% 8,139,040 $3,087,137,772
2023-12-31 Bill & Melinda Gates Foundation Trust 1% 7,353,614 $2,789,225,700
2023-12-31 Morgan Stanley 1% 7,199,614 $2,730,813,502
2023-12-31 Northern Trust Corporation 1% 6,653,373 $2,523,624,297

Besides an analyst belief that shares are overpriced, other market factors point to there being negative market sentiment on Caterpillar.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.