Blue Edge Capital LLC Invests $14.03 Million in Caterpillar Inc. $CAT

Key Points

• Blue Edge Capital initiated a $14.03 million Caterpillar position in the second quarter, purchasing 13,179 shares; institutional investors collectively own 70.98% of CAT.
• Caterpillar reported strong quarterly results, with earnings of $8.17 per share and revenue of $20.54 billion, surpassing estimates and increasing revenue 23.7% year over year.
• The company raised its quarterly dividend to $1.63 per share, while analysts maintain a consensus “Moderate Buy” rating with an average price target of $995.52; CEO Joseph Creed separately sold shares worth $26.2 million.

Blue Edge Capital LLC purchased a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm purchased 13,179 shares of the industrial products company's stock, valued at approximately $14,034,000. Caterpillar makes up 1.7% of Blue Edge Capital LLC's investment portfolio, making the stock its 17th largest holding.

Several other large investors have also recently bought and sold shares of the company. Decker Retirement Planning Inc. grew its holdings in Caterpillar by 440.0% during the second quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 22 shares during the period. Matrix Trust Co boosted its position in shares of Caterpillar by 93.8% during the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock worth $33,000 after purchasing an additional 15 shares in the last quarter. Axiom Investment Management LLC bought a new position in shares of Caterpillar during the second quarter worth $36,000. Lam Group Inc. acquired a new position in shares of Caterpillar in the 1st quarter valued at $26,000. Finally, Tacita Capital Inc bought a new stake in shares of Caterpillar in the 2nd quarter valued at $47,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Insider Buying and Selling

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of the firm's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the transaction, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Company insiders own 0.33% of the company's stock.

Caterpillar Price Performance

Shares of CAT opened at $813.51 on Tuesday. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. Caterpillar Inc. has a twelve month low of $416.44 and a twelve month high of $1,073.46. The stock has a market capitalization of $373.95 billion, a P/E ratio of 35.00, a P/E/G ratio of 1.41 and a beta of 1.60. The company has a 50 day moving average of $868.12 and a 200-day moving average of $839.26.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same quarter in the previous year, the firm posted $4.72 earnings per share. The firm's revenue for the quarter was up 23.7% on a year-over-year basis. As a group, equities research analysts forecast that Caterpillar Inc. will post 27.34 EPS for the current fiscal year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Monday, July 20th were issued a dividend of $1.63 per share. The ex-dividend date was Monday, July 20th. This is a boost from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a yield of 0.8%. Caterpillar's dividend payout ratio is currently 28.06%.

Analyst Upgrades and Downgrades

Several research firms have weighed in on CAT. Rothschild & Co Redburn lifted their target price on Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. Citigroup lifted their price objective on Caterpillar from $1,020.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Zacks Research upgraded Caterpillar from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 12th. Weiss Ratings raised Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 19th. Finally, Royal Bank Of Canada lifted their price target on shares of Caterpillar from $877.00 to $897.00 and gave the company a "sector perform" rating in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eleven have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $995.52.

Caterpillar 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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