Aberdeen Group plc Increases Stock Position in Caterpillar Inc. $CAT

Key Points

• Aberdeen Group plc increased its stake in Caterpillar Inc. by 41.5%, owning 416,760 shares worth approximately $136.7 million after acquiring an additional 122,185 shares in the first quarter.
• Several analysts upgraded Caterpillar's stock, with target prices ranging from $425.00 to $500.00, reflecting a positive outlook following recent earnings reports.
• Caterpillar announced a quarterly dividend increase from $1.41 to $1.51 per share, representing an annual yield of 1.4% and a payout ratio of 30.72%.

Aberdeen Group plc boosted its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 41.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 416,760 shares of the industrial products company's stock after purchasing an additional 122,185 shares during the period. Aberdeen Group plc owned about 0.09% of Caterpillar worth $136,689,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds also recently added to or reduced their stakes in the stock. Investment Management Corp VA ADV bought a new stake in Caterpillar during the fourth quarter valued at $33,000. Curat Global LLC bought a new stake in shares of Caterpillar during the 1st quarter worth $33,000. Redmont Wealth Advisors LLC bought a new stake in shares of Caterpillar in the first quarter valued at approximately $33,000. Quarry LP bought a new stake in shares of Caterpillar in the 4th quarter worth approximately $35,000. Finally, Mpwm Advisory Solutions LLC bought a new stake in Caterpillar in the fourth quarter valued at about $36,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Bank of America boosted their target price on Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Barclays increased their price objective on shares of Caterpillar from $383.00 to $425.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 6th. JPMorgan Chase & Co. raised their price objective on Caterpillar from $475.00 to $520.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. Oppenheimer raised their price target on Caterpillar from $395.00 to $483.00 and gave the company an "outperform" rating in a report on Thursday, July 17th. Finally, Baird R W raised Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 13th. Seven analysts have rated the stock with a hold rating, ten have given a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, Caterpillar currently has an average rating of "Moderate Buy" and an average price target of $444.00.

Caterpillar Trading Down 2.4%

CAT traded down $10.09 on Friday, hitting $407.41. 3,105,803 shares of the company were exchanged, compared to its average volume of 3,193,540. The stock has a market capitalization of $190.86 billion, a PE ratio of 20.72, a price-to-earnings-growth ratio of 2.43 and a beta of 1.40. Caterpillar Inc. has a 12 month low of $267.30 and a 12 month 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. The firm has a fifty day simple moving average of $399.63 and a two-hundred day simple moving average of $355.78.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings data 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 net margin of 14.95% and a return on equity of 48.95%. The firm had revenue of $16.57 billion for the quarter, compared to the consensus estimate of $16.14 billion. During the same period in the previous year, the firm posted $5.99 earnings per share. The business's revenue was down .7% compared to the same quarter last year. Sell-side analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Caterpillar Increases Dividend

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

Insiders Place Their Bets

In related news, insider Jason Kaiser sold 2,161 shares of the stock in a transaction on Monday, August 11th. The stock was sold at an average price of $417.70, for a total transaction of $902,649.70. Following the sale, the insider directly owned 8,632 shares of the company's stock, valued at $3,605,586.40. This trade represents a 20.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.33% of the stock is currently owned by insiders.

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.