Caterpillar Inc. $CAT Stock: Kercheville Advisors LLC Reduces Holdings

Key Points

• Kercheville Advisors cut its Caterpillar stake by 45.1% in the third quarter, selling 2,340 shares and retaining 2,850 shares valued at approximately $2.31 million. Institutional investors collectively own nearly 71% of Caterpillar.
• Caterpillar’s shares fell 0.8% to $724.96, well below their 50-day and 200-day moving averages. Despite the decline, the company reported quarterly EPS and revenue above analyst expectations, with revenue up 23.7% year over year.
• The company declared a quarterly dividend of $1.63 per share, equivalent to an annualized $6.52 dividend and a 0.9% yield. Analysts maintain a “Moderate Buy” consensus, though several recently lowered their price targets.

Kercheville Advisors LLC lowered its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 45.1% during the third quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 2,850 shares of the industrial products company's stock after selling 2,340 shares during the quarter. Kercheville Advisors LLC's holdings in Caterpillar were worth $2,311,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Caterpillar during the 2nd quarter worth about $40,457,153,000. Bank of America Corp DE purchased a new position in Caterpillar in the second quarter valued at approximately $5,818,150,000. Diamant Asset Management Inc. lifted its position in Caterpillar by 68,427.2% during the first 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 buying an additional 3,136,020 shares in the last quarter. Bank of New York Mellon Corp acquired a new position in Caterpillar during the second quarter valued at approximately $3,192,710,000. Finally, Legal & General Group Plc purchased a new stake in Caterpillar during the second quarter worth approximately $2,783,451,000. Hedge funds and other institutional investors own 70.98% of the company's stock.

Caterpillar Stock Down 0.8%

Shares of CAT traded down $5.80 during trading on Monday, reaching $724.96. The company's stock had a trading volume of 2,640,740 shares, compared to its average volume of 2,825,382. The company has a market cap of $333.25 billion, a price-to-earnings ratio of 31.19, a P/E/G ratio of 1.26 and a beta of 1.58. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The company has a fifty day moving average of $812.24 and a two-hundred day moving average of $856.69. Caterpillar Inc. has a twelve month low of $510.21 and a twelve month high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. The business had revenue of $20.54 billion during 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%. The business's revenue was up 23.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $4.72 earnings per share. On average, sell-side analysts predict that Caterpillar Inc. will post 27.49 EPS for the current fiscal year.

Caterpillar Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 19th. Stockholders of record on Monday, October 26th will be given a $1.63 dividend. The ex-dividend date of this dividend is Monday, October 26th. This represents a $6.52 annualized dividend and a dividend yield of 0.9%. Caterpillar's payout ratio is presently 28.06%.

Insider Activity

In other news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction dated 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 transaction, the chief executive officer owned 34,555 shares of the company's stock, valued at approximately $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 0.33% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Citigroup lowered their price target on Caterpillar from $1,100.00 to $950.00 and set a "buy" rating for the company in a report on Monday, October 12th. Oppenheimer reduced their price objective on Caterpillar from $1,118.00 to $1,009.00 and set an "outperform" rating on the stock in a research note on Wednesday, October 14th. Erste Group Bank downgraded Caterpillar from a "buy" rating to a "hold" rating in a research report on Monday, July 27th. Zacks Research lowered Caterpillar from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 5th. Finally, Sanford C. Bernstein reiterated a "market perform" rating and set a $749.00 target price on shares of Caterpillar in a report on Wednesday, October 14th. Fifteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $967.83.

Caterpillar Company Profile

Caterpillar Inc is a manufacturer of construction, mining, and industrial equipment. Its product portfolio includes excavators, bulldozers, wheel loaders, motor graders, articulated trucks, and other machinery used in construction, infrastructure development, mining, quarrying, forestry, and related industries. The company also produces diesel and natural gas engines, industrial gas turbines, generator sets, and other power-generation and transportation equipment.

Caterpillar operates through businesses focused on construction industries, resource industries, and energy and transportation.

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