ABC Arbitrage SA Grows Position in Caterpillar Inc. (NYSE:CAT)

Key Points

• ABC Arbitrage SA increased its stake in Caterpillar Inc. by 63.7% during the first quarter, owning a total of 4,498 shares valued at approximately $1.48 million.
• Caterpillar announced a quarterly dividend increase to $1.51 per share, up from the previous $1.41, with a dividend yield of 1.4%.
• Investment analysts have generally upgraded Caterpillar's stock rating, with the latest target price set at $475.00 by JPMorgan Chase, reflecting strong confidence in the company's performance.

ABC Arbitrage SA boosted its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 63.7% in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 4,498 shares of the industrial products company's stock after buying an additional 1,751 shares during the quarter. ABC Arbitrage SA's holdings in Caterpillar were worth $1,483,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Investment Management Corp VA ADV purchased a new position in shares of Caterpillar during the 4th quarter valued at about $33,000. Curat Global LLC acquired a new stake in Caterpillar during the first quarter worth about $33,000. Redmont Wealth Advisors LLC purchased a new position in Caterpillar during the first quarter valued at approximately $33,000. Quarry LP acquired a new position in Caterpillar in the fourth quarter valued at approximately $35,000. Finally, Mpwm Advisory Solutions LLC purchased a new stake in Caterpillar in the 4th quarter worth approximately $36,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on CAT. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Caterpillar in a report on Monday, July 14th. Barclays lifted their price objective on shares of Caterpillar from $383.00 to $425.00 and gave the company an "equal weight" rating in a report on Wednesday. Bank of America increased their target price on shares of Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a research note on Wednesday. UBS Group upgraded Caterpillar from a "sell" rating to a "neutral" rating and lifted their price target for the company from $272.00 to $357.00 in a research note on Friday, May 16th. Finally, Evercore ISI lowered their price target on Caterpillar from $375.00 to $373.00 and set an "in-line" rating on the stock in a research report on Monday, May 19th. Seven research analysts have rated the stock with a hold rating, ten have issued a buy rating and two have issued a strong buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $444.00.

Caterpillar Price Performance

Shares of Caterpillar stock traded down $6.19 on Wednesday, hitting $428.04. 2,630,330 shares of the company were exchanged, compared to its average volume of 2,904,048. The company has a quick ratio of 0.77, a current ratio of 1.34 and a debt-to-equity ratio of 1.50. The company has a 50-day moving average price of $389.11 and a 200 day moving average price of $354.92. The stock has a market capitalization of $201.62 billion, a price-to-earnings ratio of 21.77, a price-to-earnings-growth ratio of 2.72 and a beta of 1.40. Caterpillar Inc. has a 1-year low of $267.30 and a 1-year high of $441.15.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.88 by ($0.16). The company had revenue of $16.57 billion during the quarter, compared to analysts' expectations of $16.14 billion. Caterpillar had a net margin of 14.95% and a return on equity of 48.95%. The firm's quarterly revenue was down .7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $5.99 earnings per share. As a group, 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. Stockholders of record on Monday, July 21st will be given a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend is Monday, July 21st. This is a boost from Caterpillar's previous quarterly dividend of $1.41. Caterpillar's dividend payout ratio is presently 29.43%.

Caterpillar Company Profile

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.