Entropy Technologies LP Takes Position in Caterpillar Inc. (NYSE:CAT)

Key Points

• Entropy Technologies LP has acquired a new stake in Caterpillar Inc. by purchasing 22,173 shares valued at approximately $7,313,000, making it the fund's 23rd largest holding.
• Several analysts have upgraded Caterpillar's rating, with Melius Research and Citigroup both setting a target price of $500, indicating strong confidence in the stock.
• Caterpillar recently increased its quarterly dividend from $1.41 to $1.51 per share, demonstrating a solid commitment to returning value to shareholders.

Entropy Technologies LP acquired a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 22,173 shares of the industrial products company's stock, valued at approximately $7,313,000. Caterpillar accounts for approximately 0.7% of Entropy Technologies LP's holdings, making the stock its 23rd largest position.

Several other large investors also recently added to or reduced their stakes in the stock. Investment Management Corp VA ADV acquired a new position in Caterpillar during the 4th quarter valued at approximately $33,000. Quarry LP acquired a new position in Caterpillar during the 4th quarter valued at approximately $35,000. Mpwm Advisory Solutions LLC acquired a new position in Caterpillar during the 4th quarter valued at approximately $36,000. Mattson Financial Services LLC acquired a new position in Caterpillar during the 4th quarter valued at approximately $39,000. Finally, Curat Global LLC acquired a new position in Caterpillar during the 1st quarter valued at approximately $33,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Trading Up 0.5%

Shares of Caterpillar stock traded up $2.23 on Wednesday, reaching $414.94. The company had a trading volume of 489,570 shares, compared to its average volume of 2,727,003. The firm's 50 day moving average price is $395.90 and its two-hundred day moving average price is $355.51. The firm has a market cap of $194.39 billion, a PE ratio of 21.09, a PEG ratio of 2.42 and a beta of 1.40. Caterpillar Inc. has a 52-week low of $267.30 and a 52-week high of $441.15. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.81 and a current ratio of 1.34.

Caterpillar (NYSE:CAT - Get Free Report) last announced its earnings results on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share for the quarter, missing the consensus estimate of $4.88 by ($0.16). Caterpillar had a return on equity of 48.95% and a net margin of 14.95%. The business had revenue of $16.57 billion for the quarter, compared to analysts' expectations of $16.14 billion. During the same period in the previous year, the company earned $5.99 earnings per share. Caterpillar's quarterly revenue was down .7% on a year-over-year basis. Sell-side analysts predict that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 20th. Shareholders of record on Monday, July 21st will be issued a dividend of $1.51 per share. This is a boost from Caterpillar's previous quarterly dividend of $1.41. The ex-dividend date is Monday, July 21st. This represents a $6.04 annualized dividend and a yield of 1.5%. Caterpillar's dividend payout ratio (DPR) is presently 30.72%.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on CAT shares. Melius upgraded shares of Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 price objective on the stock in a research note on Wednesday, July 9th. Citigroup increased their price objective on shares of Caterpillar from $460.00 to $500.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Barclays raised their price target on shares of Caterpillar from $383.00 to $425.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 6th. Baird R W upgraded shares of Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 13th. Finally, UBS Group raised shares of Caterpillar from a "sell" rating to a "neutral" rating and increased their price objective for the company from $272.00 to $357.00 in a report on Friday, May 16th. Seven research analysts have rated the stock with a hold rating, ten have issued a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $444.00.

About Caterpillar

Caterpillar Inc manufactures and sells construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives in worldwide. Its Construction Industries segment offers asphalt pavers, compactors, road reclaimers, forestry machines, cold planers, material handlers, track-type tractors, excavators, telehandlers, motor graders, and pipelayers; compact track, wheel, track-type, backhoe, and skid steer loaders; and related parts and tools.