Institutional investors may overlook Caterpillar Inc.'s (NYSE:CAT) recent US$6.0b market cap drop as long-term gains remain positive

Simply Wall St.11-18 20:00

Key Insights Given the large stake in the stock by institutions, Caterpillar's stock price might be vulnerable to their trading decisions A total of 25 investors have a majority stake in the ...

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A total of 25 investors have a majority stake in the company with 50% ownership. A look at the shareholders of Caterpillar Inc.  can tell us which group is most powerful. With 73% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most  from their investment into the company.Institutional investors endured the highest losses after the company's market cap fell by US$6.0b last week. However, the 56% one-year returns may have helped alleviate their overall losses. They should, however, be mindful of further losses in the future.Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Caterpillar. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 9.6% of shares outstanding","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"NYSE":"纽交所","LU1974910355.USD":"Allianz Thematica Cl AMg DIS USD","LU1917777945.USD":"安联专题基金Cl AT Acc","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","LU0942090050.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD)  INC","BK4516":"特朗普概念","BK4532":"文艺复兴科技持仓","LU2106854487.HKD":"ALLIANZ THEMATICA \"AMG\" (HKD) INC","BK4520":"美国基建股","LU2023250504.SGD":"Allianz Thematica Cl AMg DIS H2-SGD","BK4585":"ETF&股票定投概念","IE00BSNM7G36.USD":"NEUBERGER BERMAN SYSTEMATIC GLOBAL SUSTAINABLE VALUE \"A\" (USD) ACC","BK4149":"建筑机械与重型卡车","LU2237438978.USD":"Amundi Funds US Pioneer A2 (C) USD","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","BK4588":"碎股","LU0868494708.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) INC","CAT":"卡特彼勒","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD"},"translate_title":"机构投资者可能会忽视卡特彼勒公司(NYSE：CAT)最近市值下跌6.0 B美元，因为长期收益仍然为正","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NYSE":1,"CAT":1},"content_text":"Key Insights\n\n Given the large stake in the stock by institutions, Caterpillar's stock price might be vulnerable to their trading decisions \n A total of 25 investors have a majority stake in the company with 50% ownership \n  Recent sales by insiders  \n\n A look at the shareholders of Caterpillar Inc. (NYSE:CAT) can tell us which group is most powerful. With 73% stake, institutions possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company. \n Institutional investors endured the highest losses after the company's market cap fell by US$6.0b last week. However, the 56% one-year returns may have helped alleviate their overall losses. They should, however, be mindful of further losses in the future. \n Let's take a closer look to see what the different types of shareholders can tell us about Caterpillar. \n View our latest analysis for Caterpillar \n\n\n\n  NYSE:CAT Ownership Breakdown November 18th 2024\n \n\nWhat Does The Institutional Ownership Tell Us About Caterpillar?\n Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. \n We can see that Caterpillar does have institutional investors; and they hold a good portion of the company's stock. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Caterpillar, (below). Of course, keep in mind that there are other factors to consider, too. \n\n\n\n  NYSE:CAT Earnings and Revenue Growth November 18th 2024\n \n\n Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. Hedge funds don't have many shares in Caterpillar. Our data shows that The Vanguard Group, Inc. is the largest shareholder with 9.6% of shares outstanding. The second and third largest shareholders are State Street Global Advisors, Inc. and BlackRock, Inc., with an equal amount of shares to their name at 7.5%. \n After doing some more digging, we found that the top 25 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company. \n While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. \nInsider Ownership Of Caterpillar\n The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. \n I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. \n Our information suggests that Caterpillar Inc. insiders own under 1% of the company. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$359m of stock. It is good to see board members owning shares, but it might be worth checking if those insiders have been buying.  \nGeneral Public Ownership\n The general public-- including retail investors -- own 27% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. \nNext Steps:\n It's always worth thinking about the different groups who own shares in a company. But to understand Caterpillar better, we need to consider many other factors. For instance, we've identified   3 warning signs for Caterpillar (1 is a bit concerning)  that you should be aware of. \n If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. \nNB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484762618"}