AIA Group Ltd Sells 11,750 Shares of Caterpillar Inc. (NYSE:CAT)

Key Points

• AIA Group Ltd has reduced its stake in Caterpillar Inc. by 31.5% during the first quarter, now owning 25,562 shares valued at approximately $8.43 million.
• Caterpillar recently reported earnings of $4.72 per share, missing expectations of $4.88, despite revenue exceeding analyst estimates at $16.57 billion for the quarter.
• The company announced an increased quarterly dividend of $1.51 per share, up from $1.41, reflecting a 1.5% dividend yield.

AIA Group Ltd cut its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 31.5% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 25,562 shares of the industrial products company's stock after selling 11,750 shares during the period. AIA Group Ltd's holdings in Caterpillar were worth $8,430,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Investment Management Corp VA ADV acquired a new position in shares of Caterpillar in the 4th quarter worth approximately $33,000. Curat Global LLC acquired a new position in shares of Caterpillar in the 1st quarter worth approximately $33,000. Redmont Wealth Advisors LLC acquired a new position in shares of Caterpillar during the 1st quarter valued at $33,000. Quarry LP acquired a new position in shares of Caterpillar during the 4th quarter valued at $35,000. Finally, Mpwm Advisory Solutions LLC acquired a new position in shares of Caterpillar during the 4th quarter valued at $36,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on CAT. Evercore ISI dropped their target price on shares of Caterpillar from $375.00 to $373.00 and set an "in-line" rating on the stock in a research report on Monday, May 19th. DA Davidson boosted their target price on shares of Caterpillar from $331.00 to $388.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. Melius upgraded shares of Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a research report on Wednesday, July 9th. Truist Financial boosted their target price on shares of Caterpillar from $414.00 to $507.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Finally, Barclays boosted their target price on shares of Caterpillar from $383.00 to $425.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 6th. Seven investment analysts have rated the stock with a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $444.00.

Caterpillar Stock Up 0.9%

Shares of NYSE CAT traded up $3.70 during trading on Thursday, hitting $417.40. The stock had a trading volume of 3,672,937 shares, compared to its average volume of 2,759,336. Caterpillar Inc. has a 12 month low of $267.30 and a 12 month high of $441.15. 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 company has a market capitalization of $195.54 billion, a PE ratio of 21.23, a PEG ratio of 2.46 and a beta of 1.40. The firm has a fifty day moving average of $397.18 and a two-hundred day moving average of $355.91.

Caterpillar (NYSE:CAT - Get Free Report) last posted its earnings results on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.88 by ($0.16). Caterpillar had a return on equity of 48.95% and a net margin of 14.95%. The firm 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 company earned $5.99 EPS. The business's revenue was down .7% compared to the same quarter last year. As a group, equities research analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 20th. Stockholders of record on Monday, July 21st will be paid a $1.51 dividend. This represents a $6.04 annualized dividend and a dividend yield of 1.4%. The ex-dividend date is Monday, July 21st. This is a positive change from Caterpillar's previous quarterly dividend of $1.41. Caterpillar's dividend payout ratio (DPR) is currently 30.72%.

Insider Activity

In other news, insider Jason Kaiser sold 2,161 shares of the company's stock in a transaction on Monday, August 11th. The shares were sold at an average price of $417.70, for a total value of $902,649.70. Following the completion of the sale, the insider owned 8,632 shares in the company, valued at $3,605,586.40. This represents a 20.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.33% of the stock is currently owned by 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.