Consolidated Capital Management LLC Acquires 5,152 Shares of Caterpillar Inc. $CAT

Key Points

• Consolidated Capital Management LLC increased its Caterpillar stake by 57.5% in the fourth quarter, buying 5,152 more shares and bringing its total to 14,108 shares worth about $8.1 million.
• Several other large institutional investors also boosted their CAT positions, and 70.98% of Caterpillar shares are held by hedge funds and other institutions.
• Caterpillar reported strong quarterly results, with EPS of $5.54 and revenue of $17.42 billion, both above analyst expectations, while analysts maintained a generally bullish view with a consensus rating of Moderate Buy.

Consolidated Capital Management LLC grew its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 57.5% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 14,108 shares of the industrial products company's stock after purchasing an additional 5,152 shares during the period. Caterpillar comprises about 2.4% of Consolidated Capital Management LLC's investment portfolio, making the stock its 15th biggest holding. Consolidated Capital Management LLC's holdings in Caterpillar were worth $8,082,000 at the end of the most recent quarter.

A number of other hedge funds have also added to or reduced their stakes in CAT. Wellington Management Group LLP raised its stake in Caterpillar by 3,949.8% during the 3rd quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company's stock valued at $2,494,568,000 after buying an additional 5,098,964 shares during the last quarter. Northwestern Mutual Wealth Management Co. raised its stake in Caterpillar by 573.1% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company's stock valued at $861,947,000 after buying an additional 1,281,087 shares during the last quarter. Amundi raised its stake in Caterpillar by 24.3% during the 3rd quarter. Amundi now owns 2,375,710 shares of the industrial products company's stock valued at $1,176,870,000 after buying an additional 464,036 shares during the last quarter. Vanguard Group Inc. raised its stake in Caterpillar by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock valued at $26,572,681,000 after buying an additional 442,164 shares during the last quarter. Finally, Alphinity Investment Management Pty Ltd purchased a new stake in Caterpillar during the 4th quarter valued at $252,204,000. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total value of $14,399,860.54. Following the completion of the sale, the chief financial officer owned 52,935 shares in the company, valued at approximately $48,631,913.85. This represents a 22.85% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Denise C. Johnson sold 12,605 shares of the stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the transaction, the insider directly owned 49,825 shares of the company's stock, valued at $45,236,615.75. This trade represents a 20.19% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 98,273 shares of company stock worth $89,439,960 in the last three months. 0.33% of the stock is owned by company insiders.

Analyst Ratings Changes

A number of equities research analysts have weighed in on CAT shares. Jefferies Financial Group boosted their target price on shares of Caterpillar from $900.00 to $1,045.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Wall Street Zen upgraded Caterpillar from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Wolfe Research upped their price objective on Caterpillar from $670.00 to $750.00 and gave the stock an "outperform" rating in a research note on Tuesday, March 31st. JPMorgan Chase & Co. upped their price objective on Caterpillar from $860.00 to $1,125.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. Finally, Citigroup upped their price objective on Caterpillar from $905.00 to $1,020.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Sixteen analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $923.14.

Caterpillar Trading Down 1.7%

Shares of CAT stock opened at $872.61 on Friday. Caterpillar Inc. has a 52-week low of $339.50 and a 52-week high of $931.35. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The firm has a market capitalization of $401.91 billion, a PE ratio of 43.43, a PEG ratio of 1.73 and a beta of 1.63. The stock has a fifty day simple moving average of $811.10 and a two-hundred day simple moving average of $702.31.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The business had revenue of $17.42 billion during the quarter, compared to analyst estimates of $16.53 billion. During the same quarter in the prior year, the business posted $4.25 EPS. Caterpillar's revenue for the quarter was up 22.2% compared to the same quarter last year. On average, analysts predict that Caterpillar Inc. will post 24.67 EPS for the current fiscal year.

Caterpillar Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, May 19th. Shareholders of record on Monday, April 20th were paid a $1.51 dividend. This represents a $6.04 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date was Monday, April 20th. Caterpillar's dividend payout ratio is presently 30.06%.

About Caterpillar

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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