Caterpillar Inc. $CAT Shares Purchased by Callahan Advisors LLC

Key Points

• Callahan Advisors LLC increased its stake in Caterpillar Inc. by 0.9% during Q2, owning a total of 55,162 shares valued at approximately $21.4 million.
• Several Wall Street analysts raised their price targets for Caterpillar, with Jefferies Financial Group setting a target of $570 and the consensus target price currently at $506.60.
• Caterpillar announced a quarterly dividend of $1.51 per share, resulting in an annualized rate of $6.04 and a yield of 1.1%.

Callahan Advisors LLC boosted its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 0.9% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 55,162 shares of the industrial products company's stock after acquiring an additional 505 shares during the period. Caterpillar accounts for about 1.9% of Callahan Advisors LLC's investment portfolio, making the stock its 12th largest position. Callahan Advisors LLC's holdings in Caterpillar were worth $21,415,000 as of its most recent SEC filing.

A number of other large investors have also recently added to or reduced their stakes in CAT. Pacific Point Advisors LLC acquired a new stake in Caterpillar in the 4th quarter valued at about $579,000. Brighton Jones LLC boosted its stake in shares of Caterpillar by 51.5% during the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock worth $2,688,000 after purchasing an additional 2,519 shares during the last quarter. GAMMA Investing LLC boosted its stake in shares of Caterpillar by 32.0% during the 1st quarter. GAMMA Investing LLC now owns 11,311 shares of the industrial products company's stock worth $3,730,000 after purchasing an additional 2,745 shares during the last quarter. Wealth Enhancement Advisory Services LLC boosted its stake in shares of Caterpillar by 18.6% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 191,640 shares of the industrial products company's stock worth $63,202,000 after purchasing an additional 30,070 shares during the last quarter. Finally, Grove Bank & Trust boosted its stake in shares of Caterpillar by 28.9% during the 1st quarter. Grove Bank & Trust now owns 1,786 shares of the industrial products company's stock worth $589,000 after purchasing an additional 400 shares during the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on CAT shares. Sanford C. Bernstein raised their price target on shares of Caterpillar from $447.00 to $502.00 and gave the stock a "market perform" rating in a research note on Tuesday. Jefferies Financial Group raised their price target on shares of Caterpillar from $500.00 to $570.00 and gave the stock a "buy" rating in a research note on Wednesday, October 8th. Melius raised shares of Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 price target on the stock in a research note on Wednesday, July 9th. Citigroup raised their price target on shares of Caterpillar from $540.00 to $570.00 and gave the stock a "buy" rating in a research note on Tuesday, October 7th. Finally, Robert W. Baird raised their target price on shares of Caterpillar from $495.00 to $540.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 17th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Caterpillar has an average rating of "Moderate Buy" and a consensus target price of $506.60.

Insider Activity at Caterpillar

In related news, insider Jason Kaiser sold 2,161 shares of the firm's stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $417.70, for a total value of $902,649.70. Following the transaction, 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 transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Chairman Donald J. Umpleby III sold 17,168 shares of the firm's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $412.87, for a total transaction of $7,088,152.16. Following the completion of the transaction, the chairman owned 482,505 shares in the company, valued at $199,211,839.35. The trade was a 3.44% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 55,985 shares of company stock worth $25,559,300. Company insiders own 0.33% of the company's stock.

Caterpillar Price Performance

CAT opened at $534.40 on Thursday. The company's 50 day simple moving average is $448.68 and its 200 day simple moving average is $387.73. 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 1 year low of $267.30 and a 1 year high of $538.45. The stock has a market capitalization of $250.35 billion, a PE ratio of 27.18, a P/E/G ratio of 3.23 and a beta of 1.46.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 5th. The industrial products company reported $4.72 EPS for the quarter, missing the consensus estimate of $4.88 by ($0.16). Caterpillar had a net margin of 14.95% and a return on equity of 48.95%. The business had revenue of $16.57 billion during the quarter, compared to analysts' expectations of $16.14 billion. During the same quarter in the previous year, the business posted $5.99 EPS. The company's quarterly revenue was down .7% on a year-over-year basis. As a group, sell-side analysts expect that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Dividend Announcement

The firm also recently declared 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 is Monday, October 20th. This represents a $6.04 annualized dividend and a yield of 1.1%. Caterpillar's dividend payout ratio (DPR) is presently 30.72%.

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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