Allied Investment Advisors LLC Sells 2,439 Shares of Caterpillar Inc. $CAT

Key Points

• Allied Investment Advisors LLC reduced its Caterpillar stake by 5.6% in the fourth quarter, selling 2,439 shares and leaving it with 41,070 shares valued at about $23.5 million.
• Insider selling picked up at Caterpillar, with CFO Andrew R. J. Bonfield and insider Lange Bob De both selling shares; insiders have sold 98,273 shares worth about $89.4 million over the last 90 days.
• Analysts remain constructive on Caterpillar after strong quarterly results, including EPS of $5.54 versus $4.65 expected and revenue of $17.42 billion, while the stock has received a “Moderate Buy” consensus and an average price target of $923.14.

Allied Investment Advisors LLC decreased its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 5.6% in the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 41,070 shares of the industrial products company's stock after selling 2,439 shares during the period. Caterpillar accounts for 3.6% of Allied Investment Advisors LLC's investment portfolio, making the stock its 4th largest holding. Allied Investment Advisors LLC's holdings in Caterpillar were worth $23,528,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of CAT. Torren Management LLC acquired a new position in Caterpillar in the fourth quarter valued at $27,000. Frazier Financial Advisors LLC boosted its holdings in shares of Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $28,000 after acquiring an additional 33 shares in the last quarter. IFS Advisors LLC purchased a new stake in shares of Caterpillar in the fourth quarter valued at about $31,000. Rialto Wealth Management LLC increased its stake in shares of Caterpillar by 47.4% during the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company's stock worth $32,000 after acquiring an additional 18 shares during the period. Finally, Noble Wealth Management PBC raised its holdings in Caterpillar by 140.0% during the fourth quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company's stock worth $34,000 after purchasing an additional 35 shares in the last quarter. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Caterpillar

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the company's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total value of $14,399,860.54. Following the transaction, the chief financial officer directly owned 52,935 shares in the company, valued at approximately $48,631,913.85. This represents a 22.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Lange Bob De sold 24,222 shares of the stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the transaction, the insider owned 86,029 shares in the company, valued at approximately $79,397,884.68. The trade was a 21.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 98,273 shares of company stock worth $89,439,960 in the last ninety days. Company insiders own 0.33% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have issued reports on CAT shares. Citigroup boosted their target price on Caterpillar from $905.00 to $1,020.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. JPMorgan Chase & Co. raised their price target on Caterpillar from $860.00 to $1,125.00 and gave the company an "overweight" rating in a report on Friday, May 1st. Royal Bank Of Canada lifted their price target on Caterpillar from $587.00 to $658.00 and gave the company a "sector perform" rating in a research note on Friday, January 30th. Jefferies Financial Group boosted their target price on shares of Caterpillar from $900.00 to $1,045.00 and gave the stock a "buy" rating in a research report on Friday, May 1st. Finally, Truist Financial set a $1,043.00 price objective on shares of Caterpillar in a research note on Friday, May 1st. Sixteen equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat, Caterpillar currently has an average rating of "Moderate Buy" and an average price target of $923.14.

Caterpillar Stock Performance

Shares of CAT opened at $880.23 on Tuesday. Caterpillar Inc. has a 12-month low of $336.24 and a 12-month high of $931.35. The stock has a market cap of $405.42 billion, a P/E ratio of 43.81, a PEG ratio of 1.74 and a beta of 1.63. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. The company has a 50-day moving average of $795.32 and a two-hundred day moving average of $694.03.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating the consensus estimate of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business had revenue of $17.42 billion for the quarter, compared to analyst estimates of $16.53 billion. During the same period in the prior year, the business earned $4.25 earnings per share. The company's quarterly revenue was up 22.2% on a year-over-year basis. As a group, research analysts predict that Caterpillar Inc. will post 24.67 EPS for the current fiscal year.

Caterpillar Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, May 19th. Investors of record on Monday, April 20th were given a dividend of $1.51 per share. This represents a $6.04 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Monday, April 20th. Caterpillar's dividend payout ratio (DPR) is currently 30.06%.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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