Caterpillar Inc. $CAT Stock Position Raised by Ritholtz Wealth Management

Key Points

• Ritholtz Wealth Management increased its position in Caterpillar Inc. by 35.2% in Q2, bringing its holdings to 12,959 shares valued at over $5 million.
• Major analysts have raised their target prices for Caterpillar, with JPMorgan Chase lifting theirs from $505 to $650, reflecting heightened confidence in the company's stock.
• Caterpillar recently announced a quarterly dividend of $1.51 per share, which equates to an annualized dividend yield of 1.1% and illustrates the company's commitment to returning value to shareholders.

Ritholtz Wealth Management grew its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 35.2% in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 12,959 shares of the industrial products company's stock after buying an additional 3,372 shares during the quarter. Ritholtz Wealth Management's holdings in Caterpillar were worth $5,031,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. GSB Wealth Management LLC lifted its stake in shares of Caterpillar by 1.2% in the 2nd quarter. GSB Wealth Management LLC now owns 2,143 shares of the industrial products company's stock valued at $832,000 after purchasing an additional 26 shares during the last quarter. Verum Partners LLC raised its holdings in Caterpillar by 2.5% during the second quarter. Verum Partners LLC now owns 1,059 shares of the industrial products company's stock valued at $411,000 after buying an additional 26 shares in the last quarter. Vanguard Capital Wealth Advisors lifted its position in shares of Caterpillar by 0.8% in the second quarter. Vanguard Capital Wealth Advisors now owns 3,575 shares of the industrial products company's stock worth $1,388,000 after buying an additional 27 shares during the last quarter. InTrack Investment Management Inc boosted its stake in shares of Caterpillar by 0.6% during the 2nd quarter. InTrack Investment Management Inc now owns 4,683 shares of the industrial products company's stock worth $1,818,000 after acquiring an additional 27 shares in the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. increased its holdings in shares of Caterpillar by 2.4% during the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,216 shares of the industrial products company's stock valued at $472,000 after acquiring an additional 29 shares during the last quarter. Institutional investors own 70.98% of the company's stock.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on CAT shares. JPMorgan Chase & Co. upped their target price on Caterpillar from $505.00 to $650.00 and gave the stock an "overweight" rating in a research report on Tuesday. DA Davidson upped their price objective on shares of Caterpillar from $331.00 to $388.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. Sanford C. Bernstein raised their target price on shares of Caterpillar from $447.00 to $502.00 and gave the company a "market perform" rating in a research note on Tuesday. Bank of America boosted their target price on shares of Caterpillar from $495.00 to $517.00 and gave the stock a "buy" rating in a research report on Monday, September 22nd. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Caterpillar in a research report on Tuesday. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $501.47.

Caterpillar Stock Performance

NYSE CAT opened at $528.75 on Wednesday. The company's fifty day moving average is $446.55 and its two-hundred day moving average is $386.71. Caterpillar Inc. has a 52-week low of $267.30 and a 52-week high of $531.56. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.34 and a quick ratio of 0.81. The firm has a market capitalization of $247.71 billion, a price-to-earnings ratio of 26.89, a P/E/G ratio of 3.09 and a beta of 1.46.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share 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 during the quarter, compared to the consensus estimate of $16.14 billion. During the same quarter in the previous year, the business posted $5.99 EPS. The firm's quarterly revenue was down .7% on a year-over-year basis. Equities research analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, November 20th. Stockholders of record on Monday, October 20th will be given a dividend of $1.51 per share. The ex-dividend date is Monday, October 20th. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.1%. Caterpillar's payout ratio is currently 30.72%.

Insider Activity at Caterpillar

In related news, insider Jason Kaiser sold 2,161 shares of the firm's stock in a transaction on Monday, August 11th. The stock was sold at an average price of $417.70, for a total value of $902,649.70. Following the completion of the transaction, the insider directly owned 8,632 shares of the company's stock, valued at $3,605,586.40. This trade represents a 20.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Susan C. Schwab sold 2,324 shares of the business's stock in a transaction on 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 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 position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 55,985 shares of company stock worth $25,559,300. 0.33% of the stock is owned by corporate insiders.

Caterpillar Company 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.

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