Clare Market Investments LLC Invests $1.92 Million in Caterpillar Inc. $CAT

Key Points

• Clare Market Investments LLC disclosed a new stake in Caterpillar, buying 2,705 shares valued at about $1.92 million in the first quarter.
• Caterpillar reported strong quarterly results, with EPS of $5.54 beating estimates and revenue of $17.41 billion topping expectations; revenue also rose 22.2% from a year ago.
• The company raised its quarterly dividend to $1.63 per share from $1.51, while analysts currently rate the stock a consensus Moderate Buy with a target price of $949.41.

Clare Market Investments LLC acquired a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm acquired 2,705 shares of the industrial products company's stock, valued at approximately $1,916,000.

Several other large investors have also recently bought and sold shares of the company. Montz Harcus Wealth Management LLC raised its holdings in Caterpillar by 0.9% during the 1st quarter. Montz Harcus Wealth Management LLC now owns 1,848 shares of the industrial products company's stock worth $1,309,000 after buying an additional 17 shares during the period. Signet Private Wealth LLC boosted its stake in shares of Caterpillar by 60.7% in the first quarter. Signet Private Wealth LLC now owns 911 shares of the industrial products company's stock valued at $645,000 after buying an additional 344 shares during the period. Collaborative Fund Advisors LLC bought a new stake in Caterpillar in the 1st quarter worth about $439,000. Nvest Financial LLC lifted its holdings in Caterpillar by 17.1% during the first quarter. Nvest Financial LLC now owns 507 shares of the industrial products company's stock worth $359,000 after acquiring an additional 74 shares during the period. Finally, Planning Center Inc. boosted its position in Caterpillar by 22.3% in the first quarter. Planning Center Inc. now owns 1,618 shares of the industrial products company's stock worth $1,146,000 after purchasing an additional 295 shares during the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Caterpillar Stock Down 3.7%

CAT stock opened at $933.86 on Tuesday. Caterpillar Inc. has a 1-year low of $391.52 and a 1-year high of $1,073.46. The stock has a market cap of $430.13 billion, a price-to-earnings ratio of 46.22, a price-to-earnings-growth ratio of 1.90 and a beta of 1.57. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. The company's 50 day moving average is $921.01 and its 200 day moving average is $772.97.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. The business had revenue of $17.41 billion during the quarter, compared to analysts' expectations of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The business's quarterly revenue was up 22.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $4.25 EPS. Sell-side analysts predict that Caterpillar Inc. will post 24.71 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a dividend of $1.63 per share. The ex-dividend date is Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. Caterpillar's dividend payout ratio (DPR) is 32.45%.

Insider Activity

In other Caterpillar news, insider Anthony D. Fassino sold 16,283 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the transaction, the insider directly owned 46,041 shares in the company, valued at $42,210,388.80. This trade represents a 26.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO William E. Schaupp sold 360 shares of Caterpillar stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $906.00, for a total transaction of $326,160.00. Following the completion of the transaction, the chief accounting officer owned 530 shares in the company, valued at approximately $480,180. The trade was a 40.45% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 95,773 shares of company stock valued at $87,642,635. 0.33% of the stock is owned by insiders.

Analysts Set New Price Targets

A number of equities analysts recently weighed in on CAT shares. Zacks Research raised shares of Caterpillar from a "hold" rating to a "strong-buy" rating in a report on Monday, June 8th. Wolfe Research upped their price objective on shares of Caterpillar from $670.00 to $750.00 and gave the company an "outperform" rating in a report on Tuesday, March 31st. Sanford C. Bernstein boosted their price target on shares of Caterpillar from $769.00 to $879.00 and gave the company a "market perform" rating in a research report on Friday, May 1st. HSBC lifted their price objective on shares of Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of Caterpillar in a research note on Friday, May 8th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $949.41.

Caterpillar Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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