Brookwood Investment Group LLC Invests $860,000 in Caterpillar Inc. (NYSE:CAT)

Key Points

• Brookwood Investment Group LLC has acquired a new stake in Caterpillar Inc., investing approximately $860,000 for 2,608 shares during the first quarter.
• Caterpillar plans to increase its quarterly dividend to $1.51 per share, up from the previous $1.41, with an annualized yield of 1.39%.
• Despite missing earnings expectations with a reported $4.25 EPS, analysts maintain a consensus rating of "Moderate Buy" with a target price averaging $419.33 per share.

Brookwood Investment Group LLC acquired a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The firm acquired 2,608 shares of the industrial products company's stock, valued at approximately $860,000.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Investment Management Corp VA ADV acquired a new position in Caterpillar during the fourth quarter worth approximately $33,000. Curat Global LLC acquired a new position in shares of Caterpillar during the 1st quarter worth approximately $33,000. Redmont Wealth Advisors LLC acquired a new position in shares of Caterpillar during the 1st quarter worth approximately $33,000. Quarry LP acquired a new position in shares of Caterpillar during the 4th quarter worth approximately $35,000. Finally, Mpwm Advisory Solutions LLC acquired a new position in shares of Caterpillar in the fourth quarter valued at $36,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Stock Performance

CAT traded up $4.55 on Friday, hitting $434.07. The company's stock had a trading volume of 2,207,764 shares, compared to its average volume of 2,516,496. Caterpillar Inc. has a 12 month low of $267.30 and a 12 month high of $434.87. The company's 50 day simple moving average is $377.02 and its 200-day simple moving average is $351.88. The company has a quick ratio of 0.77, a current ratio of 1.32 and a debt-to-equity ratio of 1.43. The firm has a market cap of $204.47 billion, a P/E ratio of 21.15, a price-to-earnings-growth ratio of 2.69 and a beta of 1.38.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Wednesday, April 30th. The industrial products company reported $4.25 EPS for the quarter, missing the consensus estimate of $4.35 by ($0.10). Caterpillar had a return on equity of 53.77% and a net margin of 15.71%. The company had revenue of $14.25 billion during the quarter, compared to the consensus estimate of $14.64 billion. During the same quarter in the prior year, the business earned $5.60 EPS. The firm's revenue for the quarter was down 9.8% compared to the same quarter last year. Analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 20th. Stockholders of record on Monday, July 21st will be issued a dividend of $1.51 per share. This is an increase from Caterpillar's previous quarterly dividend of $1.41. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.39%. The ex-dividend date is Monday, July 21st. Caterpillar's payout ratio is currently 29.43%.

Insider Activity

In related news, Director David Maclennan acquired 375 shares of the company's stock in a transaction dated Wednesday, May 7th. The stock was bought at an average cost of $320.70 per share, with a total value of $120,262.50. Following the acquisition, the director owned 6,653 shares of the company's stock, valued at approximately $2,133,617.10. The trade was a 5.97% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.33% of the company's stock.

Wall Street Analyst Weigh In

Several research firms have recently commented on CAT. Morgan Stanley raised Caterpillar from an "underweight" rating to an "equal weight" rating and decreased their target price for the company from $300.00 to $283.00 in a research report on Wednesday, April 16th. Evercore ISI cut their price objective on Caterpillar from $375.00 to $373.00 and set an "in-line" rating on the stock in a report on Monday, May 19th. Robert W. Baird lifted their price target on shares of Caterpillar from $395.00 to $422.00 and gave the stock an "outperform" rating in a report on Friday, June 20th. Melius Research raised Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 price objective on the stock in a research note on Wednesday, July 9th. Finally, JPMorgan Chase & Co. upped their price target on Caterpillar from $395.00 to $475.00 and gave the stock an "overweight" rating in a research note on Thursday, July 10th. Seven analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $419.33.

Caterpillar Company 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.