Caterpillar Inc. $CAT Shares Sold by Alliance Private Wealth LLC

Key Points

• Alliance Private Wealth LLC cut its Caterpillar position by 55.5% in the second quarter, selling 2,880 shares and retaining 2,313 shares valued at approximately $2.46 million. Institutional investors collectively own 70.98% of the company.
• Caterpillar reported a strong quarter, with earnings of $8.17 per share versus the $6.22 consensus estimate and revenue of $20.54 billion, up 23.7% year over year.
• The company raised its quarterly dividend to $1.63 per share, or $6.52 annualized, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $995.52.

Alliance Private Wealth LLC decreased its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 55.5% during the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 2,313 shares of the industrial products company's stock after selling 2,880 shares during the period. Caterpillar comprises approximately 0.9% of Alliance Private Wealth LLC's portfolio, making the stock its 28th biggest holding. Alliance Private Wealth LLC's holdings in Caterpillar were worth $2,463,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Lam Group Inc. purchased a new stake in Caterpillar in the 1st quarter valued at approximately $26,000. Torren Management LLC acquired a new stake in shares of Caterpillar during the fourth quarter valued at $27,000. Frazier Financial Advisors LLC increased its position in Caterpillar by 220.0% during the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock worth $28,000 after purchasing an additional 33 shares in the last quarter. Cornerstone Financial Management LLC purchased a new stake in Caterpillar during the 4th quarter worth about $32,000. Finally, Matrix Trust Co raised its stake in Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock valued at $33,000 after purchasing an additional 15 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Caterpillar Stock Performance

Shares of CAT stock opened at $836.29 on Tuesday. Caterpillar Inc. has a one year low of $405.46 and a one year high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37. The company has a 50 day moving average price of $920.45 and a 200 day moving average price of $821.82. The firm has a market capitalization of $384.42 billion, a price-to-earnings ratio of 35.98, a price-to-earnings-growth ratio of 1.52 and a beta of 1.60.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, beating analysts' consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. Caterpillar's revenue for the quarter was up 23.7% on a year-over-year basis. During the same quarter last year, the business earned $4.72 EPS. Sell-side analysts anticipate that Caterpillar Inc. will post 26.3 EPS for the current year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date of this dividend is Monday, July 20th. Caterpillar's dividend payout ratio (DPR) is presently 28.06%.

Insider Activity

In related news, insider Denise C. Johnson sold 12,605 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $907.91, for a total value of $11,444,205.55. Following the transaction, the insider owned 49,825 shares in the company, valued at approximately $45,236,615.75. This trade represents a 20.19% 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, CAO William E. Schaupp sold 360 shares of Caterpillar stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $906.00, for a total transaction of $326,160.00. Following the transaction, the chief accounting officer directly owned 530 shares in the company, valued at approximately $480,180. This trade represents a 40.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 19,161 shares of company stock valued at $17,407,424 over the last 90 days. 0.33% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several equities research analysts have issued reports on the stock. HSBC raised their price target on shares of Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. DA Davidson boosted their price objective on shares of Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a research report on Thursday. Weiss Ratings reissued a "buy (b-)" rating on shares of Caterpillar in a research note on Wednesday, August 5th. Truist Financial set a $980.00 target price on shares of Caterpillar in a research note on Wednesday, August 5th. Finally, Barclays boosted their price target on Caterpillar from $800.00 to $900.00 and gave the company an "equal weight" rating in a report on Thursday. Thirteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $995.52.

Caterpillar Company 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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