Caterpillar Inc. $CAT Stock Position Cut by Rafferty Asset Management LLC

Key Points

• Rafferty Asset Management LLC reduced its stake in Caterpillar Inc. by 20.2%, selling 9,205 shares, leaving them with 36,342 shares valued at approximately $11.99 million.
• Several analysts have recently upgraded their ratings and boosted price targets for Caterpillar, with Melius Research setting a target of $500.00 and Baird R W raising their rating to a "strong-buy".
• Caterpillar has announced a quarterly dividend of $1.51 per share, an increase from the previous $1.41, reflecting a commitment to returning value to shareholders.

Rafferty Asset Management LLC reduced its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 20.2% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 36,342 shares of the industrial products company's stock after selling 9,205 shares during the period. Rafferty Asset Management LLC's holdings in Caterpillar were worth $11,986,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in CAT. GAMMA Investing LLC raised its holdings in Caterpillar by 43,447.3% in the first quarter. GAMMA Investing LLC now owns 3,730,259 shares of the industrial products company's stock valued at $1,230,239,000 after acquiring an additional 3,721,693 shares in the last quarter. Pacer Advisors Inc. raised its holdings in Caterpillar by 2,723.1% in the first quarter. Pacer Advisors Inc. now owns 1,414,280 shares of the industrial products company's stock valued at $466,430,000 after acquiring an additional 1,364,183 shares in the last quarter. Nuveen LLC acquired a new stake in Caterpillar in the first quarter valued at $391,788,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Caterpillar by 8.6% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,940,391 shares of the industrial products company's stock valued at $1,429,416,000 after acquiring an additional 312,878 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in Caterpillar in the fourth quarter valued at $108,958,000. 70.98% of the stock is owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Melius Research raised shares of Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 price target on the stock in a report on Wednesday, July 9th. Truist Financial upped their price target on shares of Caterpillar from $414.00 to $507.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Melius raised shares of Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a report on Wednesday, July 9th. Jefferies Financial Group reaffirmed a "buy" rating on shares of Caterpillar in a report on Friday. Finally, Bank of America increased their price objective on shares of Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $455.53.

Caterpillar Stock Performance

Shares of Caterpillar stock traded down $4.24 during trading on Tuesday, hitting $414.80. 709,281 shares of the stock were exchanged, compared to its average volume of 2,757,161. The stock's fifty day moving average is $413.80 and its 200 day moving average is $360.70. The stock has a market cap of $194.32 billion, a PE ratio of 21.07, a P/E/G ratio of 2.53 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 12 month low of $267.30 and a 12 month high of $441.15.

Caterpillar (NYSE:CAT - Get Free Report) last released 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). The firm had revenue of $16.57 billion for the quarter, compared to the consensus estimate of $16.14 billion. Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.The firm's revenue was down .7% on a year-over-year basis. During the same quarter in the prior year, the company posted $5.99 EPS. As a group, sell-side analysts anticipate that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 20th. Stockholders of record on Monday, July 21st were given a dividend of $1.51 per share. This is an increase from Caterpillar's previous quarterly dividend of $1.41. This represents a $6.04 annualized dividend and a dividend yield of 1.5%. The ex-dividend date was Monday, July 21st. Caterpillar's payout ratio is currently 30.72%.

Insider Activity

In other news, insider Jason Kaiser sold 2,161 shares of the company's 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 completion of the transaction, the insider owned 8,632 shares in the company, valued at approximately $3,605,586.40. This represents a 20.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Susan C. Schwab sold 2,324 shares of the stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $410.00, for a total transaction of $952,840.00. Following the completion of the transaction, the director owned 6,917 shares of the company's stock, valued at $2,835,970. This represents a 25.15% decrease in their position. The disclosure for this sale can be found here. 0.33% of the stock is currently 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.