Caterpillar Inc. (NYSE:CAT) Stake Boosted by Fairfield Financial Advisors LTD

Key Points

• Fairfield Financial Advisors LTD increased its stake in Caterpillar Inc. by 23.2% in Q1, now holding 8,959 shares valued at approximately $2.95 million.
• Caterpillar recently declared a quarterly dividend of $1.51 per share, up from the previous $1.41, with a dividend yield of 1.4%.
• Caterpillar's Q1 earnings missed analyst expectations, reporting $4.25 EPS against a consensus of $4.35 EPS, alongside a 9.8% decline in revenue year-over-year.

Fairfield Financial Advisors LTD grew its stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 23.2% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 8,959 shares of the industrial products company's stock after purchasing an additional 1,686 shares during the quarter. Caterpillar makes up 1.1% of Fairfield Financial Advisors LTD's portfolio, making the stock its 20th largest holding. Fairfield Financial Advisors LTD's holdings in Caterpillar were worth $2,955,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently made changes to their positions in the stock. Investment Management Corp VA ADV bought a new position in Caterpillar in the 4th quarter worth approximately $33,000. Curat Global LLC bought a new position in Caterpillar in the 1st quarter worth approximately $33,000. Redmont Wealth Advisors LLC bought a new position in Caterpillar in the 1st quarter worth approximately $33,000. Quarry LP bought a new position in Caterpillar in the 4th quarter worth approximately $35,000. Finally, Mpwm Advisory Solutions LLC bought a new position in Caterpillar in the 4th quarter worth approximately $36,000. 70.98% of the stock is owned by institutional investors.

Caterpillar Price Performance

CAT opened at $428.85 on Friday. The stock has a fifty day moving average of $385.66 and a 200-day moving average of $354.22. The firm has a market capitalization of $202.01 billion, a P/E ratio of 20.90, a PEG ratio of 2.68 and a beta of 1.40. Caterpillar Inc. has a 12-month low of $267.30 and a 12-month high of $441.15. The company has a quick ratio of 0.77, a current ratio of 1.32 and a debt-to-equity ratio of 1.43.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Wednesday, April 30th. The industrial products company reported $4.25 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.35 by ($0.10). The business had revenue of $14.25 billion during the quarter, compared to analysts' expectations of $14.64 billion. Caterpillar had a net margin of 15.71% and a return on equity of 53.77%. Caterpillar's revenue for the quarter was down 9.8% on a year-over-year basis. During the same quarter in the previous year, the company earned $5.60 EPS. Equities analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Caterpillar Increases Dividend

The business also recently declared 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 dividend on an annualized basis and a dividend yield of 1.4%. This is a boost from Caterpillar's previous quarterly dividend of $1.41. The ex-dividend date of this dividend is Monday, July 21st. Caterpillar's dividend payout ratio (DPR) is currently 29.43%.

Analyst Ratings Changes

A number of brokerages have issued reports on CAT. JPMorgan Chase & Co. increased their price target on Caterpillar from $395.00 to $475.00 and gave the company an "overweight" rating in a research note on Thursday, July 10th. Bank of America increased their price target on Caterpillar from $335.00 to $385.00 and gave the company a "buy" rating in a research note on Friday, May 30th. Evercore ISI decreased their price target on Caterpillar from $375.00 to $373.00 and set an "in-line" rating for the company in a research note on Monday, May 19th. DA Davidson increased their price target on Caterpillar from $331.00 to $388.00 and gave the company a "neutral" rating in a research note on Tuesday, July 22nd. Finally, Morgan Stanley raised Caterpillar from an "underweight" rating to an "equal weight" rating and decreased their price target for the company from $300.00 to $283.00 in a research note on Wednesday, April 16th. Seven analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $419.33.

Insider Buying and Selling at Caterpillar

In related news, Director David Maclennan purchased 375 shares of the company's stock in a transaction dated Wednesday, May 7th. The shares were acquired at an average cost of $320.70 per share, with a total value of $120,262.50. Following the completion of the purchase, the director owned 6,653 shares of the company's stock, valued at $2,133,617.10. The trade was a 5.97% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.33% of the company's stock.

Caterpillar 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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