Caterpillar Inc. $CAT Holdings Lifted by Sound Income Strategies LLC

Key Points

• Sound Income Strategies LLC increased its holdings in Caterpillar Inc. by 38.4% in the second quarter, now owning 2,226 shares worth $864,000.
• Caterpillar's latest quarter showed earnings per share of $4.72, below analyst expectations, despite revenues surpassing estimates at $16.57 billion.
• Analysts have recently updated their ratings on Caterpillar, with Oppenheimer raising its price target from $480 to $513 and Melius upgrading from "hold" to "buy."

Sound Income Strategies LLC grew its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 38.4% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,226 shares of the industrial products company's stock after buying an additional 618 shares during the period. Sound Income Strategies LLC's holdings in Caterpillar were worth $864,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in CAT. Compass Financial Services Inc boosted its position in Caterpillar by 49.2% during the 1st 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. Family Legacy Financial Solutions LLC bought a new stake in shares of Caterpillar during the second quarter valued at about $32,000. Curat Global LLC acquired a new stake in Caterpillar in the first quarter worth about $33,000. Redmont Wealth Advisors LLC bought a new position in Caterpillar in the 1st quarter valued at about $33,000. Finally, Fiduciary Wealth Partners LLC acquired a new position in Caterpillar during the 1st quarter valued at about $45,000. 70.98% of the stock is owned by institutional investors.

Caterpillar Stock Performance

NYSE:CAT opened at $471.68 on Tuesday. The firm's 50-day moving average is $432.21 and its 200-day moving average is $374.91. The company has a market cap of $220.97 billion, a price-to-earnings ratio of 23.99, a PEG ratio of 2.83 and a beta of 1.41. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.81 and a current ratio of 1.34. Caterpillar Inc. has a 52-week low of $267.30 and a 52-week high of $485.34.

Caterpillar (NYSE:CAT - Get Free Report) last released its 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 firm had revenue of $16.57 billion for the quarter, compared to analyst estimates of $16.14 billion. Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.The firm's quarterly revenue was down .7% compared to the same quarter last year. During the same period last year, the business earned $5.99 earnings per share. Equities research analysts anticipate that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Analyst Upgrades and Downgrades

CAT has been the subject of several recent analyst reports. Oppenheimer increased their price objective on shares of Caterpillar from $480.00 to $513.00 and gave the company an "outperform" rating in a report on Monday. Melius raised Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 price target for the company in a research note on Wednesday, July 9th. Citigroup reissued a "buy" rating on shares of Caterpillar in a research note on Tuesday, September 23rd. Evercore ISI upgraded Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 price objective for the company in a report on Tuesday, August 19th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and set a $500.00 target price on shares of Caterpillar in a report on Friday, August 29th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, Caterpillar has a consensus rating of "Moderate Buy" and an average price target of $466.53.

Insider Activity at Caterpillar

In other news, Director Susan C. Schwab sold 2,324 shares of the stock in a transaction on 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 transaction, the director owned 6,917 shares in the company, valued at approximately $2,835,970. This represents a 25.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Jason Kaiser sold 2,161 shares of Caterpillar stock in a transaction dated 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 owned 8,632 shares in the company, valued at approximately $3,605,586.40. This trade represents a 20.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 38,819 shares of company stock worth $16,885,492. 0.33% of the stock is owned by corporate 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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