ARK Investment Management LLC Increases Stock Position in Caterpillar Inc. $CAT

Key Points

• ARK Investment Management LLC increased its stake in Caterpillar Inc. by 33.7% during the second quarter, bringing its total to 27,876 shares valued at approximately $10.8 million.
• Caterpillar reported $4.72 EPS for its latest quarter, missing estimates of $4.88, and experienced a 0.7% decline in revenue year-over-year.
• The company announced a quarterly dividend of $1.51, equating to an annualized yield of 1.2%, set to be paid on November 20th.

ARK Investment Management LLC boosted its stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 33.7% in the second quarter, according to its most recent disclosure with the SEC. The firm owned 27,876 shares of the industrial products company's stock after acquiring an additional 7,019 shares during the period. ARK Investment Management LLC's holdings in Caterpillar were worth $10,822,000 at the end of the most recent quarter.

Other large investors also recently added to or reduced their stakes in the company. Mid American Wealth Advisory Group Inc. acquired a new position in Caterpillar during the second quarter worth $28,000. Family Legacy Financial Solutions LLC acquired a new position in Caterpillar during the second quarter worth $32,000. Harbor Asset Planning Inc. acquired a new position in Caterpillar during the second quarter worth $34,000. Compass Financial Services Inc raised its position in Caterpillar by 49.2% during the first quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company's stock worth $31,000 after acquiring an additional 31 shares during the period. Finally, Redmont Wealth Advisors LLC acquired a new position in Caterpillar during the first quarter worth $33,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Trading Down 1.2%

Shares of CAT opened at $524.95 on Wednesday. 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 $544.99. The firm has a 50-day moving average price of $458.10 and a 200 day moving average price of $394.14. The firm has a market capitalization of $245.93 billion, a P/E ratio of 26.70, a P/E/G ratio of 3.02 and a beta of 1.46.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share (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 firm had revenue of $16.57 billion during the quarter, compared to analysts' expectations of $16.14 billion. During the same period in the prior year, the company posted $5.99 EPS. The company's revenue for the quarter was down .7% compared to the same quarter last year. Sell-side analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 20th. Investors of record on Monday, October 20th will be issued a $1.51 dividend. The ex-dividend date of this dividend is Monday, October 20th. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.2%. Caterpillar's dividend payout ratio is currently 30.72%.

Analysts Set New Price Targets

A number of brokerages have recently commented on CAT. Oppenheimer increased their target price on shares of Caterpillar from $480.00 to $513.00 and gave the company an "outperform" rating in a research report on Monday, September 29th. Jefferies Financial Group increased their target price on shares of Caterpillar from $500.00 to $570.00 and gave the company a "buy" rating in a research report on Wednesday, October 8th. Truist Financial increased their target price on shares of Caterpillar from $507.00 to $582.00 and gave the company a "buy" rating in a research report on Wednesday, October 8th. JPMorgan Chase & Co. increased their target price on shares of Caterpillar from $505.00 to $650.00 and gave the company an "overweight" rating in a research report on Tuesday, October 14th. Finally, Sanford C. Bernstein increased their target price on shares of Caterpillar from $447.00 to $502.00 and gave the company a "market perform" rating in a research report on Tuesday, October 14th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $518.19.

Insider Activity at Caterpillar

In related news, Director Susan C. Schwab sold 2,324 shares of the company's 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 sale, the director owned 6,917 shares of the company's stock, valued at approximately $2,835,970. This represents a 25.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Chairman Donald J. Umpleby III sold 17,166 shares of the company's stock in a transaction dated Friday, October 10th. The shares were sold at an average price of $505.29, for a total transaction of $8,673,808.14. Following the completion of the sale, the chairman directly owned 448,173 shares of the company's stock, valued at $226,457,335.17. This represents a 3.69% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 55,985 shares of company stock valued at $25,559,300. 0.33% of the stock is owned by company insiders.

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.

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