Advisors Asset Management Inc. Lowers Stake in Caterpillar Inc. $CAT

Key Points

• Advisors Asset Management Inc. decreased its holdings in Caterpillar by 36.7%, selling 6,124 shares, and now owns 10,584 shares valued at approximately $3.49 million.
• Analysts have set new price targets on CAT, with JPMorgan Chase & Co. raising its target from $475 to $520 and maintaining an "overweight" rating.
• Caterpillar announced a quarterly dividend increase from $1.41 to $1.51 per share, reflecting a yield of 1.4% and a dividend payout ratio of 30.72%.

Advisors Asset Management Inc. reduced its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 36.7% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 10,584 shares of the industrial products company's stock after selling 6,124 shares during the quarter. Advisors Asset Management Inc.'s holdings in Caterpillar were worth $3,491,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Victrix Investment Advisors bought a new stake in shares of Caterpillar during the fourth quarter worth $2,090,000. Charles Schwab Investment Management Inc. increased its stake in Caterpillar by 0.5% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 3,304,448 shares of the industrial products company's stock worth $1,089,798,000 after buying an additional 15,347 shares during the period. Pacific Point Advisors LLC purchased a new stake in Caterpillar in the 4th quarter valued at about $579,000. Wealth Enhancement Advisory Services LLC grew its stake in Caterpillar by 18.6% in 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 acquiring an additional 30,070 shares in the last quarter. Finally, Crestwood Advisors Group LLC increased its position in shares of Caterpillar by 3.4% during the first quarter. Crestwood Advisors Group LLC now owns 22,689 shares of the industrial products company's stock worth $7,483,000 after acquiring an additional 743 shares during the period. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Caterpillar Stock Performance

Caterpillar stock traded up $8.71 during trading hours on Thursday, hitting $431.62. 2,737,694 shares of the stock traded hands, compared to its average volume of 2,446,142. The firm's 50 day moving average price is $419.41 and its 200-day moving average price is $364.55. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.34 and a quick ratio of 0.81. The stock has a market capitalization of $202.21 billion, a price-to-earnings ratio of 21.95, a P/E/G ratio of 2.57 and a beta of 1.41. Caterpillar Inc. has a 1 year low of $267.30 and a 1 year high of $441.15.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Tuesday, August 5th. The industrial products company reported $4.72 EPS for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16). Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.The firm had revenue of $16.57 billion for the quarter, compared to analyst estimates of $16.14 billion. During the same period last year, the firm earned $5.99 EPS. The company's revenue for the quarter was down .7% compared to the same quarter last year. As a group, equities analysts expect that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on CAT shares. Sanford C. Bernstein reissued a "market perform" rating on shares of Caterpillar in a research note on Monday, July 14th. Bank of America raised their price target on Caterpillar from $460.00 to $495.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Robert W. Baird lowered their price objective on shares of Caterpillar from $500.00 to $495.00 and set an "outperform" rating for the company in a research note on Friday, August 29th. Truist Financial raised their target price on shares of Caterpillar from $414.00 to $507.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Finally, UBS Group upgraded Caterpillar from a "sell" rating to a "neutral" rating and lifted their target price for the company from $272.00 to $357.00 in a research note on Friday, May 16th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $457.20.

Insider Activity at Caterpillar

In related news, insider Jason Kaiser sold 2,161 shares of the business's stock in a transaction on Monday, August 11th. The shares were sold at an average price of $417.70, for a total transaction of $902,649.70. Following the completion of the transaction, the insider directly owned 8,632 shares in the company, valued at $3,605,586.40. The trade was a 20.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Chairman Donald J. Umpleby III sold 17,168 shares of the stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $412.87, for a total value of $7,088,152.16. Following the sale, the chairman directly owned 482,505 shares in the company, valued at $199,211,839.35. This represents a 3.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 21,653 shares of company stock worth $8,943,642 over the last three months. Company insiders own 0.33% of the company's stock.

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.