Caterpillar Inc. $CAT Shares Sold by Ameriprise Financial Inc.

Key Points

• Ameriprise Financial Inc. reduced its ownership in Caterpillar Inc. by 28.6% during the first quarter, owning approximately $536.33 million worth of the company's stock after selling over 650,000 shares.
• Caterpillar announced a quarterly dividend of $1.51, an increase from the previous $1.41, reflecting a 30.72% dividend payout ratio and a yield of 1.4%.
• Research analysts have raised price targets for Caterpillar, with JPMorgan Chase increasing theirs from $475.00 to $520.00, reflecting optimism in Caterpillar's market position.

Ameriprise Financial Inc. trimmed its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 28.6% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 1,626,204 shares of the industrial products company's stock after selling 650,325 shares during the quarter. Ameriprise Financial Inc. owned about 0.35% of Caterpillar worth $536,333,000 at the end of the most recent quarter.

Several other hedge funds have also recently bought and sold shares of CAT. Pacific Point Advisors LLC acquired a new position in Caterpillar during the fourth quarter worth $579,000. Brighton Jones LLC lifted its position in Caterpillar by 51.5% during the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock worth $2,688,000 after acquiring an additional 2,519 shares during the last quarter. Adage Capital Partners GP L.L.C. acquired a new position in Caterpillar during the 4th quarter worth $26,129,000. Evercore Wealth Management LLC lifted its position in Caterpillar by 1.9% during the 4th quarter. Evercore Wealth Management LLC now owns 10,167 shares of the industrial products company's stock worth $3,688,000 after acquiring an additional 194 shares during the last quarter. Finally, Burling Wealth Partners LLC acquired a new position in Caterpillar during the 4th quarter worth $352,000. 70.98% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on CAT shares. Bank of America boosted their target price on shares of Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Sanford C. Bernstein reissued a "market perform" rating on shares of Caterpillar in a research report on Monday, July 14th. Melius raised shares of Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a research report on Wednesday, July 9th. Barclays boosted their target price 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. Finally, JPMorgan Chase & Co. upped their price objective on shares of Caterpillar from $475.00 to $520.00 and gave the company an "overweight" rating in a research report on Wednesday, August 6th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $450.87.

Caterpillar Price Performance

Shares of NYSE:CAT traded up $2.17 during trading on Wednesday, reaching $433.43. 830,332 shares of the company's stock traded hands, compared to its average volume of 2,764,423. The firm has a market cap of $203.05 billion, a PE ratio of 22.04, a P/E/G ratio of 2.58 and a beta of 1.40. Caterpillar Inc. has a fifty-two week low of $267.30 and a fifty-two week high of $441.15. The company has a 50-day simple moving average of $408.58 and a 200-day simple moving average of $358.73. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 1.50.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share for the quarter, missing analysts' consensus estimates 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 company's quarterly revenue was down .7% compared to the same quarter last year. During the same period in the prior year, the business posted $5.99 earnings per share. As a group, analysts predict that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Caterpillar Increases Dividend

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

Insider Buying and Selling

In other news, Director Susan C. Schwab sold 2,324 shares of Caterpillar stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $410.00, for a total transaction of $952,840.00. Following the sale, the director owned 6,917 shares of the company's stock, valued at approximately $2,835,970. The trade was a 25.15% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jason Kaiser sold 2,161 shares of Caterpillar stock in a transaction that occurred on Monday, August 11th. The shares were 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 in the company, valued at approximately $3,605,586.40. The trade was a 20.02% decrease in their position. The disclosure for this sale can be found here. Company insiders own 0.33% of the company's stock.

Caterpillar 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.