USS Investment Management Ltd Sells 21,900 Shares of Caterpillar Inc. $CAT

Key Points

• USS Investment Management Ltd reduced its position in Caterpillar Inc. by 27.5% in Q1, selling 21,900 shares, and now holds shares worth $19,072,000.
• Caterpillar reported quarterly earnings of $4.72 per share, missing estimates, with revenue of $16.57 billion, a 0.7% decline from the previous year.
• The company recently increased its quarterly dividend from $1.41 to $1.51 per share, resulting in an annual yield of 1.4% and a payout ratio of 30.72%.

USS Investment Management Ltd cut its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 27.5% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 57,808 shares of the industrial products company's stock after selling 21,900 shares during the quarter. USS Investment Management Ltd's holdings in Caterpillar were worth $19,072,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the business. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in Caterpillar by 8.6% in the 4th 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. GAMMA Investing LLC raised its stake in Caterpillar by 43,447.3% during the 1st quarter. GAMMA Investing LLC now owns 3,730,259 shares of the industrial products company's stock valued at $1,230,239,000 after buying an additional 3,721,693 shares during the last quarter. Charles Schwab Investment Management Inc. raised its stake in Caterpillar by 0.5% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 3,304,448 shares of the industrial products company's stock valued at $1,089,798,000 after buying an additional 15,347 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in Caterpillar by 9.1% during the 1st quarter. Goldman Sachs Group Inc. now owns 3,229,080 shares of the industrial products company's stock valued at $1,064,951,000 after buying an additional 268,300 shares during the last quarter. Finally, Invesco Ltd. raised its stake in Caterpillar by 5.0% during the 1st quarter. Invesco Ltd. now owns 3,141,936 shares of the industrial products company's stock valued at $1,036,211,000 after buying an additional 150,533 shares during the last quarter. 70.98% of the stock is owned by institutional investors.

Caterpillar Price Performance

CAT stock traded up $8.71 during trading on Thursday, reaching $431.62. The company's stock had a trading volume of 2,680,550 shares, compared to its average volume of 2,729,024. The company's fifty day moving average is $418.76 and its 200-day moving average is $363.91. Caterpillar Inc. has a 1 year low of $267.30 and a 1 year high of $441.15. The company has a market capitalization of $202.21 billion, a P/E ratio of 21.95, a price-to-earnings-growth ratio of 2.54 and a beta of 1.41. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 1.50.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data 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 company had revenue of $16.57 billion for the quarter, compared to the consensus estimate of $16.14 billion. During the same period last year, the company earned $5.99 EPS. The firm's revenue for the quarter was down .7% on a year-over-year basis. On average, research analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Insider Activity at Caterpillar

In related news, Chairman Donald J. Umpleby III sold 17,168 shares of the stock in a transaction dated Tuesday, September 2nd. The shares were 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 of the company's stock, valued at $199,211,839.35. This represents a 3.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Susan C. Schwab sold 2,324 shares of the stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $410.00, for a total transaction of $952,840.00. Following the completion of the sale, the director directly owned 6,917 shares in the company, valued at $2,835,970. This trade represents a 25.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 21,653 shares of company stock valued at $8,943,642. Insiders own 0.33% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on CAT. UBS Group upgraded shares of Caterpillar from a "sell" rating to a "neutral" rating and boosted their target price for the company from $272.00 to $357.00 in a research note on Friday, May 16th. DA Davidson boosted their target price on shares of Caterpillar from $331.00 to $388.00 and gave the company a "neutral" rating in a research note on Tuesday, July 22nd. Bank of America upped their price objective on Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Robert W. Baird reduced their price objective on Caterpillar from $500.00 to $495.00 and set an "outperform" rating for the company in a research note on Friday, August 29th. Finally, Melius upgraded Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 price objective for the company in a research note on Wednesday, July 9th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $457.20.

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.