Alliancebernstein L.P. Trims Stake in Caterpillar Inc. $CAT

Key Points

• Alliancebernstein L.P. reduced its stake in Caterpillar Inc. by 2.0% in Q1, holding 537,319 shares valued at approximately $177.2 million after selling 10,932 shares.
• Several hedge funds, such as GAMMA Investing LLC and Pacer Advisors Inc., made significant increases in their stakes in Caterpillar, with GAMMA acquiring over 3.7 million new shares.
• Caterpillar recently declared a quarterly dividend of $1.51, up from $1.41, yielding 1.4% with a payout ratio of 30.72%.

Alliancebernstein L.P. trimmed its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 2.0% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 537,319 shares of the industrial products company's stock after selling 10,932 shares during the period. Alliancebernstein L.P. owned 0.11% of Caterpillar worth $177,208,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the stock. GAMMA Investing LLC increased its stake in Caterpillar by 43,447.3% in the 1st quarter. GAMMA Investing LLC now owns 3,730,259 shares of the industrial products company's stock worth $1,230,239,000 after buying an additional 3,721,693 shares in the last quarter. Pacer Advisors Inc. increased its stake in Caterpillar by 2,723.1% in the 1st quarter. Pacer Advisors Inc. now owns 1,414,280 shares of the industrial products company's stock worth $466,430,000 after buying an additional 1,364,183 shares in the last quarter. Nuveen LLC purchased a new stake in Caterpillar in the 1st quarter worth $391,788,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Caterpillar by 8.6% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,940,391 shares of the industrial products company's stock worth $1,429,416,000 after buying an additional 312,878 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in Caterpillar in the 4th quarter worth $108,958,000. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Caterpillar Stock Up 1.3%

Shares of NYSE:CAT opened at $420.48 on Friday. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 1.50. Caterpillar Inc. has a 12 month low of $267.30 and a 12 month high of $441.15. The company has a 50-day moving average price of $416.29 and a 200 day moving average price of $361.91. The company has a market cap of $196.99 billion, a price-to-earnings ratio of 21.39, a PEG ratio of 2.52 and a beta of 1.41.

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

Caterpillar Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 20th. Investors of record on Monday, July 21st were issued a $1.51 dividend. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.4%. The ex-dividend date of this dividend was Monday, July 21st. This is a positive change from Caterpillar's previous quarterly dividend of $1.41. Caterpillar's payout ratio is 30.72%.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on CAT shares. JPMorgan Chase & Co. increased their price target on Caterpillar from $475.00 to $520.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 6th. Jefferies Financial Group restated a "buy" rating and set a $500.00 price objective on shares of Caterpillar in a research report on Friday, August 29th. Baird R W upgraded Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, May 13th. Evercore ISI upgraded Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 price objective for the company in a research report on Tuesday, August 19th. Finally, Melius Research upgraded Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 price objective for the company in a research report on Wednesday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $457.20.

Insider Activity at Caterpillar

In related news, Director Susan C. Schwab sold 2,324 shares of the stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $410.00, for a total value of $952,840.00. Following the completion of the transaction, the director owned 6,917 shares of the company's stock, valued at approximately $2,835,970. This trade represents a 25.15% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman Donald J. Umpleby III sold 17,168 shares of the firm's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $412.87, for a total transaction of $7,088,152.16. Following the completion of the sale, the chairman directly owned 482,505 shares of the company's stock, valued at approximately $199,211,839.35. The trade was a 3.44% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 21,653 shares of company stock valued at $8,943,642. Insiders own 0.33% of the company's stock.

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.

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