Caterpillar Inc. $CAT Shares Sold by Western Financial Corp CA

Key Points

• Western Financial Corp CA reduced its Caterpillar stake by 74.9% in the third quarter, selling 5,285 shares and retaining 1,770 shares valued at approximately $1.44 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported strong quarterly results, with EPS of $8.17 versus the $6.22 consensus estimate and revenue of $20.54 billion, up 23.7% year over year.
• The company maintained its $1.63 quarterly dividend, equivalent to $6.52 annually and a 0.9% yield. Analysts remain moderately bullish, with a consensus “Moderate Buy” rating and a $967.83 price target.

Western Financial Corp CA cut its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 74.9% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,770 shares of the industrial products company's stock after selling 5,285 shares during the period. Western Financial Corp CA's holdings in Caterpillar were worth $1,435,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of Caterpillar in the second quarter worth about $40,457,153,000. Bank of America Corp DE acquired a new stake in shares of Caterpillar during the second quarter worth about $5,818,150,000. Diamant Asset Management Inc. lifted its holdings in shares of Caterpillar by 68,427.2% during the 1st quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock valued at $2,224,992,000 after purchasing an additional 3,136,020 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Caterpillar during the 2nd quarter valued at about $3,192,710,000. Finally, Legal & General Group Plc acquired a new position in shares of Caterpillar in the 2nd quarter valued at approximately $2,783,451,000. 70.98% of the stock is currently owned by institutional investors.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Oppenheimer maintained an “outperform” rating and still sees substantial upside, although it lowered its price target to $1,009 from $1,118. Oppenheimer Caterpillar price-target update
• Positive Sentiment: Caterpillar maintained its quarterly dividend at $1.63 per share, payable November 19 to shareholders of record October 19. The company has paid annual cash dividends since its founding and quarterly dividends since 1933. Caterpillar Inc. Maintains Dividend

Caterpillar Stock Performance

CAT opened at $747.18 on Thursday. The company has a market capitalization of $343.46 billion, a price-to-earnings ratio of 32.15, a P/E/G ratio of 1.33 and a beta of 1.58. The business's 50-day moving average price is $816.99 and its two-hundred day moving average price is $855.96. Caterpillar Inc. has a 1 year low of $510.21 and a 1 year high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS 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 return on equity of 55.53% and a net margin of 14.51%. The company's quarterly revenue was up 23.7% compared to the same quarter last year. During the same period in the previous year, the company posted $4.72 earnings per share. Equities analysts expect that Caterpillar Inc. will post 27.49 EPS for the current fiscal year.

Caterpillar Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 19th will be given a $1.63 dividend. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Monday, October 19th. Caterpillar's payout ratio is currently 28.06%.

Insider Activity at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction on Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the transaction, the chief executive officer owned 34,555 shares in the company, valued at approximately $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.33% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on CAT shares. Royal Bank Of Canada increased their target price on Caterpillar from $877.00 to $897.00 and gave the stock a "sector perform" rating in a research note on Wednesday, August 5th. Needham & Company LLC set a $980.00 price target on shares of Caterpillar in a research note on Thursday, September 10th. Zacks Research lowered shares of Caterpillar from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Freedom Broker upgraded shares of Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 price target for the company in a report on Thursday, September 10th. Finally, Wall Street Zen raised shares of Caterpillar from a "hold" rating to a "buy" rating in a research report on Saturday, October 10th. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $967.83.

Caterpillar Company Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives. Its products are used in infrastructure development, construction, mining, energy production, transportation, agriculture, forestry, and other industrial applications.

The company markets equipment and related services through a worldwide network of independent dealers. Its operations are generally organized around Construction Industries, Resource Industries, and Energy & Transportation.

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