Fayez Sarofim & Co Boosts Stock Position in Caterpillar Inc. (NYSE:CAT)

Key Points

• Fayez Sarofim & Co has increased its stake in Caterpillar Inc. by 2.1%, now holding 61,764 shares valued at approximately $20.37 million.
• Recent earnings showed Caterpillar missed the consensus EPS estimate by $0.16 with reported earnings of $4.72, while revenue was $16.57 billion, exceeding expectations.
• Caterpillar announced a dividend increase to $1.51 per share, marking a 7.1% rise from its previous dividend of $1.41.

Fayez Sarofim & Co lifted its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 2.1% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 61,764 shares of the industrial products company's stock after acquiring an additional 1,265 shares during the quarter. Fayez Sarofim & Co's holdings in Caterpillar were worth $20,370,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently modified their holdings of the business. Investment Management Corp VA ADV bought a new stake in shares of Caterpillar during the 4th quarter valued at $33,000. Quarry LP purchased a new position in shares of Caterpillar in the fourth quarter worth about $35,000. Mpwm Advisory Solutions LLC purchased a new position in shares of Caterpillar in the fourth quarter worth about $36,000. Mattson Financial Services LLC purchased a new position in Caterpillar during the 4th quarter valued at about $39,000. Finally, Curat Global LLC bought a new position in Caterpillar in the 1st quarter worth $33,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Stock Down 0.2%

CAT stock traded down $0.69 during trading on Friday, hitting $416.43. 2,965,068 shares of the company's stock traded hands, compared to its average volume of 2,924,406. The firm has a market capitalization of $195.09 billion, a P/E ratio of 21.18, a PEG ratio of 2.46 and a beta of 1.40. The business has a fifty day simple moving average of $393.37 and a two-hundred day simple moving average of $355.47. The company has a quick ratio of 0.77, a current ratio of 1.34 and a debt-to-equity ratio of 1.50. Caterpillar Inc. has a 1 year low of $267.30 and a 1 year high of $441.15.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly 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). The business had revenue of $16.57 billion during the quarter, compared to analyst estimates of $16.14 billion. Caterpillar had a return on equity of 48.95% and a net margin of 14.95%. Caterpillar's quarterly revenue was down .7% compared to the same quarter last year. During the same quarter last year, the company posted $5.99 EPS. Sell-side analysts anticipate that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 20th. Investors of record on Monday, July 21st will be given a dividend of $1.51 per share. This is a boost from Caterpillar's previous quarterly dividend of $1.41. The ex-dividend date is Monday, July 21st. This represents a $6.04 annualized dividend and a dividend yield of 1.5%. Caterpillar's payout ratio is currently 30.72%.

Analyst Ratings Changes

A number of analysts have recently commented on the company. DA Davidson boosted their price target on Caterpillar from $331.00 to $388.00 and gave the stock a "neutral" rating in a research report on Tuesday, July 22nd. Bank of America upped their target price on shares of Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a report on Wednesday. Melius Research raised shares of Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 price objective for the company in a report on Wednesday, July 9th. Citigroup increased their price objective on shares of Caterpillar from $460.00 to $500.00 and gave the company a "buy" rating in a report on Wednesday. Finally, Morgan Stanley raised shares of Caterpillar from an "underweight" rating to an "equal weight" rating and lowered their price target for the company from $300.00 to $283.00 in a report on Wednesday, April 16th. Seven analysts have rated the stock with a hold rating, ten have given a buy rating and two have given a strong buy rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $444.00.

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.