Connor Clark & Lunn Investment Management Ltd. Buys 200,458 Shares of Caterpillar Inc. (NYSE:CAT)

Key Points

• Connor Clark & Lunn Investment Management Ltd. increased its stake in Caterpillar Inc. by 356.7% during the first quarter, owning over 256,000 shares valued at approximately $84.6 million.
• Caterpillar recently disclosed a quarterly dividend increase to $1.51 per share, from the previous $1.41, reflecting a 1.5% dividend yield.
• Despite missing quarterly earnings expectations, Caterpillar's revenue for the quarter was $16.57 billion, surpassing analyst estimates of $16.14 billion.

Connor Clark & Lunn Investment Management Ltd. lifted its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 356.7% during the 1st quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 256,656 shares of the industrial products company's stock after buying an additional 200,458 shares during the period. Connor Clark & Lunn Investment Management Ltd. owned about 0.05% of Caterpillar worth $84,645,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently made changes to their positions in CAT. Investment Management Corp VA ADV bought a new stake in Caterpillar in the 4th quarter worth approximately $33,000. Curat Global LLC bought a new stake in Caterpillar in the 1st quarter worth approximately $33,000. Redmont Wealth Advisors LLC bought a new stake in Caterpillar in the 1st quarter worth approximately $33,000. Quarry LP bought a new stake in Caterpillar in the 4th quarter worth approximately $35,000. Finally, Mpwm Advisory Solutions LLC bought a new stake in Caterpillar in the 4th quarter worth approximately $36,000. Institutional investors own 70.98% of the company's stock.

Caterpillar Price Performance

Shares of NYSE:CAT traded up $1.05 on Wednesday, reaching $413.76. The company's stock had a trading volume of 2,151,092 shares, compared to its average volume of 2,738,181. Caterpillar Inc. has a 52-week low of $267.30 and a 52-week high of $441.15. The company has a market cap of $193.84 billion, a P/E ratio of 21.03, a PEG ratio of 2.42 and a beta of 1.40. The company has a 50-day simple moving average of $395.90 and a 200 day simple moving average of $355.51. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.81 and a current ratio of 1.34.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $4.72 EPS for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16). Caterpillar had a return on equity of 48.95% and a net margin of 14.95%. The business had revenue of $16.57 billion during the quarter, compared to analysts' expectations of $16.14 billion. During the same period in the previous year, the business earned $5.99 earnings per share. The business's quarterly revenue was down .7% on a year-over-year basis. As a group, equities research analysts anticipate that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Caterpillar Increases Dividend

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

Wall Street Analyst Weigh In

A number of equities research analysts have commented on CAT shares. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Caterpillar in a research report on Monday, July 14th. Melius raised shares of Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a research report on Wednesday, July 9th. Bank of America upped their price objective on Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Morgan Stanley upgraded Caterpillar from an "underweight" rating to an "equal weight" rating and reduced their price objective for the stock from $300.00 to $283.00 in a research note on Wednesday, April 16th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Caterpillar from $475.00 to $520.00 and gave the company an "overweight" rating in a research report on Wednesday, August 6th. Seven research analysts have rated the stock with a hold rating, ten have issued a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $444.00.

About Caterpillar

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.