Brown Advisory Inc. Cuts Holdings in Caterpillar Inc. $CAT

Key Points

• Brown Advisory trimmed its Caterpillar stake by 6.0% in the fourth quarter, leaving it with 81,479 shares valued at about $46.7 million.
• Caterpillar insiders have also been selling shares recently, including CFO Andrew R. J. Bonfield and insider Anthony D. Fassino; insiders sold 95,773 shares worth about $87.6 million over the last 90 days.
• The stock has been strong: Caterpillar beat quarterly earnings and revenue estimates, raised its dividend to $1.63 per share, and analysts now have a consensus rating of Moderate Buy with an average price target of $933.27.

Brown Advisory Inc. reduced its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 6.0% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 81,479 shares of the industrial products company's stock after selling 5,192 shares during the quarter. Brown Advisory Inc.'s holdings in Caterpillar were worth $46,677,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also made changes to their positions in the company. Torren Management LLC acquired a new stake in Caterpillar in the 4th quarter valued at $27,000. Frazier Financial Advisors LLC increased its holdings in Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 33 shares in the last quarter. IFS Advisors LLC acquired a new stake in Caterpillar in the 4th quarter valued at $31,000. Rialto Wealth Management LLC increased its holdings in Caterpillar by 47.4% in the 4th quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company's stock valued at $32,000 after purchasing an additional 18 shares in the last quarter. Finally, Noble Wealth Management PBC increased its holdings in Caterpillar by 140.0% in the 4th quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company's stock valued at $34,000 after purchasing an additional 35 shares in the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Caterpillar

In other news, CFO Andrew R. J. Bonfield sold 15,674 shares of Caterpillar stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the sale, the chief financial officer owned 52,935 shares of the company's stock, valued at approximately $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Anthony D. Fassino sold 16,283 shares of Caterpillar stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $916.80, for a total value of $14,928,254.40. Following the sale, the insider directly owned 46,041 shares in the company, valued at approximately $42,210,388.80. This trade represents a 26.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 95,773 shares of company stock valued at $87,642,635. Company insiders own 0.33% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently issued reports on CAT. Citigroup increased their price target on Caterpillar from $905.00 to $1,020.00 and gave the company a "buy" rating in a report on Friday, May 1st. HSBC increased their price target on Caterpillar from $850.00 to $1,100.00 in a report on Tuesday, May 5th. Oppenheimer set a $980.00 target price on Caterpillar and gave the company an "outperform" rating in a research note on Friday, May 1st. Truist Financial set a $1,043.00 target price on Caterpillar in a research note on Friday, May 1st. Finally, Morgan Stanley set a $915.00 target price on Caterpillar and gave the company an "equal weight" rating in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, Caterpillar presently has an average rating of "Moderate Buy" and a consensus price target of $933.27.

Caterpillar Trading Up 2.5%

Shares of NYSE CAT opened at $933.46 on Tuesday. The stock's 50 day moving average price is $856.17 and its two-hundred day moving average price is $730.40. Caterpillar Inc. has a 52-week low of $356.96 and a 52-week high of $946.83. The stock has a market capitalization of $429.94 billion, a P/E ratio of 46.46, a PEG ratio of 1.80 and a beta of 1.59. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.53 billion. During the same period in the previous year, the firm posted $4.25 earnings per share. Caterpillar's quarterly revenue was up 22.2% compared to the same quarter last year. On average, analysts anticipate that Caterpillar Inc. will post 24.62 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be paid a $1.63 dividend. The ex-dividend date is Monday, July 20th. This is an increase from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. Caterpillar's payout ratio is presently 30.06%.

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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