Caterpillar Inc. $CAT Stock: Godsey & Gibb Inc. Raises Stake

Key Points

• Godsey & Gibb increased its Caterpillar stake by 3,405% in the third quarter, ending with 7,781 shares valued at approximately $6.3 million. Institutional investors collectively own 70.98% of CAT.
• Analysts maintain a generally positive outlook, with 15 Buy ratings and 12 Holds producing a consensus “Moderate Buy” rating and an average price target of $967.83, despite several recent target reductions.
• Caterpillar reported a strong quarter, with earnings of $8.17 per share and revenue of $20.54 billion, up 23.7% year over year. The company maintained its $1.63 quarterly dividend, while CEO Joseph Creed sold shares worth about $26.2 million.

Godsey & Gibb Inc. increased its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 3,405.0% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 7,781 shares of the industrial products company's stock after acquiring an additional 7,559 shares during the quarter. Godsey & Gibb Inc.'s holdings in Caterpillar were worth $6,309,000 as of its most recent SEC filing.

A number of other large investors have also added to or reduced their stakes in the business. BlackRock Inc. bought a new position in Caterpillar during the second quarter worth $40,457,153,000. State Street Corp increased its holdings in shares of Caterpillar by 4.0% in the second quarter. State Street Corp now owns 36,276,960 shares of the industrial products company's stock valued at $37,120,529,000 after purchasing an additional 1,396,356 shares during the last quarter. Bank of America Corp DE bought a new position in shares of Caterpillar in the second quarter valued at about $5,818,150,000. Bank of New York Mellon Corp bought a new position in shares of Caterpillar in the second quarter valued at about $3,192,710,000. Finally, Legal & General Group Plc acquired a new stake in shares of Caterpillar during the 2nd quarter worth about $2,783,451,000. Institutional investors own 70.98% of the company's stock.

Analysts Set New Price Targets

CAT has been the subject of several research analyst reports. Wells Fargo & Company lifted their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a report on Tuesday, June 23rd. Erste Group Bank cut shares of Caterpillar from a "buy" rating to a "hold" rating in a report on Monday, July 27th. Citigroup lowered their price target on shares of Caterpillar from $1,100.00 to $950.00 and set a "buy" rating on the stock in a report on Monday. UBS Group boosted their price objective on Caterpillar from $900.00 to $925.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Finally, Truist Financial decreased their target price on Caterpillar from $1,225.00 to $1,100.00 and set a "buy" rating on the stock in a research report on Monday, October 5th. Fifteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat, Caterpillar presently has an average rating of "Moderate Buy" and a consensus target price of $967.83.

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

Insider Activity at Caterpillar

In other news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the sale, the chief executive officer directly owned 34,555 shares in the company, valued at approximately $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.33% of the company's stock.

Caterpillar Trading Down 3.3%

CAT stock opened at $747.18 on Thursday. 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's 50-day simple moving average is $816.99 and its 200 day simple moving average is $855.96. Caterpillar Inc. has a 52 week low of $510.21 and a 52 week high of $1,073.46. The company has a market capitalization of $343.46 billion, a PE ratio of 32.15, a price-to-earnings-growth ratio of 1.33 and a beta of 1.58.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 EPS for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same period last year, the firm earned $4.72 earnings per share. Caterpillar's revenue for the quarter was up 23.7% compared to the same quarter last year. As a group, sell-side analysts anticipate that Caterpillar Inc. will post 27.49 earnings per share for the current year.

Caterpillar Announces Dividend

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

Caterpillar 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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