AE Wealth Management LLC Decreases Position in Caterpillar Inc. (NYSE:CAT)

Key Points

• AE Wealth Management LLC has reduced its stake in Caterpillar Inc. by 25.3%, selling 6,372 shares, and now holds shares worth approximately $6.2 million.
• Multiple brokerages have raised their price targets for Caterpillar, with JPMorgan Chase increasing its target from $395 to $475, and the average price target now sits at $419.33.
• Caterpillar has announced a quarterly dividend increase to $1.51 per share, up from its previous $1.41, reflecting a healthy 1.39% yield on its stock.

AE Wealth Management LLC reduced its stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 25.3% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 18,801 shares of the industrial products company's stock after selling 6,372 shares during the quarter. AE Wealth Management LLC's holdings in Caterpillar were worth $6,201,000 as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. Victrix Investment Advisors bought a new stake in Caterpillar during the fourth quarter worth approximately $2,090,000. Pacific Point Advisors LLC bought a new stake in Caterpillar during the fourth quarter worth approximately $579,000. Wealth Enhancement Advisory Services LLC grew its stake in shares of Caterpillar by 18.6% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 191,640 shares of the industrial products company's stock valued at $63,202,000 after buying an additional 30,070 shares during the last quarter. Crestwood Advisors Group LLC grew its stake in shares of Caterpillar by 3.4% during the first quarter. Crestwood Advisors Group LLC now owns 22,689 shares of the industrial products company's stock valued at $7,483,000 after buying an additional 743 shares during the last quarter. Finally, Liberty Square Wealth Partners LLC grew its stake in shares of Caterpillar by 5.8% during the first quarter. Liberty Square Wealth Partners LLC now owns 1,636 shares of the industrial products company's stock valued at $540,000 after buying an additional 90 shares during the last quarter. 70.98% of the stock is owned by institutional investors.

Insider Activity at Caterpillar

In other Caterpillar news, Director David Maclennan acquired 375 shares of the firm's stock in a transaction dated Wednesday, May 7th. The stock was purchased at an average price of $320.70 per share, for a total transaction of $120,262.50. Following the acquisition, the director owned 6,653 shares in the company, valued at approximately $2,133,617.10. This trade represents a 5.97% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Corporate insiders own 0.33% of the company's stock.

Caterpillar Stock Up 0.4%

Caterpillar stock traded up $1.77 during mid-day trading on Monday, reaching $435.52. 687,817 shares of the company were exchanged, compared to its average volume of 2,672,452. The business has a fifty day moving average of $377.02 and a 200 day moving average of $351.76. The company has a debt-to-equity ratio of 1.43, a quick ratio of 0.77 and a current ratio of 1.32. The firm has a market cap of $205.15 billion, a P/E ratio of 21.21, a PEG ratio of 2.71 and a beta of 1.38. Caterpillar Inc. has a 12-month low of $267.30 and a 12-month high of $435.83.

Caterpillar (NYSE:CAT - Get Free Report) last posted its earnings results on Wednesday, April 30th. The industrial products company reported $4.25 earnings per share for the quarter, missing analysts' consensus estimates of $4.35 by ($0.10). The company had revenue of $14.25 billion for the quarter, compared to analysts' expectations of $14.64 billion. Caterpillar had a return on equity of 53.77% and a net margin of 15.71%. The firm's quarterly revenue was down 9.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $5.60 EPS. Research analysts anticipate that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 20th. Stockholders of record on Monday, July 21st will be issued a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a dividend yield of 1.39%. The ex-dividend date of this dividend is Monday, July 21st. This is a positive change from Caterpillar's previous quarterly dividend of $1.41. Caterpillar's dividend payout ratio is currently 29.43%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. DA Davidson upped their target price on Caterpillar from $331.00 to $388.00 and gave the company a "neutral" rating in a research note on Tuesday, July 22nd. Oppenheimer upped their target price on Caterpillar from $395.00 to $483.00 and gave the company an "outperform" rating in a research note on Thursday, July 17th. Citigroup reaffirmed a "buy" rating and set a $420.00 target price (up previously from $370.00) on shares of Caterpillar in a research note on Tuesday, June 24th. Evercore ISI cut their target price on Caterpillar from $375.00 to $373.00 and set an "in-line" rating on the stock in a research note on Monday, May 19th. Finally, Barclays upped their target price on Caterpillar from $335.00 to $383.00 and gave the company an "equal weight" rating in a research note on Monday, July 21st. Seven investment analysts have rated the stock with a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $419.33.

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.