DMKC Advisory Services LLC Raises Position in Caterpillar Inc. $CAT

Key Points

• DMKC Advisory Services LLC increased its stake in Caterpillar Inc. by 58.1%, owning a total of 10,774 shares valued at approximately $4.5 million.
• Insider selling is notable, with Chairman Donald J. Umpleby III selling 17,168 shares for over $7 million, resulting in a 3.44% decrease in his ownership.
• Caterpillar's stock recently opened at $480.99, and analysts have raised target prices, with Bank of America setting a new target of $517.00.

DMKC Advisory Services LLC boosted its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 58.1% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 10,774 shares of the industrial products company's stock after buying an additional 3,960 shares during the period. Caterpillar makes up 2.4% of DMKC Advisory Services LLC's holdings, making the stock its 13th largest position. DMKC Advisory Services LLC's holdings in Caterpillar were worth $4,504,000 as of its most recent SEC filing.

Several other hedge funds also recently added to or reduced their stakes in CAT. GSB Wealth Management LLC lifted its holdings in shares of Caterpillar by 1.2% in the 2nd quarter. GSB Wealth Management LLC now owns 2,143 shares of the industrial products company's stock worth $832,000 after acquiring an additional 26 shares during the last quarter. Verum Partners LLC raised its position in Caterpillar by 2.5% in the second quarter. Verum Partners LLC now owns 1,059 shares of the industrial products company's stock valued at $411,000 after purchasing an additional 26 shares during the period. Vanguard Capital Wealth Advisors grew its stake in shares of Caterpillar by 0.8% in the second quarter. Vanguard Capital Wealth Advisors now owns 3,575 shares of the industrial products company's stock valued at $1,388,000 after buying an additional 27 shares in the last quarter. Thurston Springer Miller Herd & Titak Inc. grew its stake in shares of Caterpillar by 2.4% in the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,216 shares of the industrial products company's stock valued at $472,000 after buying an additional 29 shares in the last quarter. Finally, McAdam LLC grew its stake in shares of Caterpillar by 1.6% in the second quarter. McAdam LLC now owns 1,872 shares of the industrial products company's stock valued at $727,000 after buying an additional 29 shares in the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, Chairman Donald J. Umpleby III sold 17,168 shares of the stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $412.87, for a total value of $7,088,152.16. Following the transaction, the chairman owned 482,505 shares in the company, valued at approximately $199,211,839.35. This represents a 3.44% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Susan C. Schwab sold 2,324 shares of the company's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $410.00, for a total value of $952,840.00. Following the completion of the transaction, the director directly owned 6,917 shares of the company's stock, valued at $2,835,970. This trade represents a 25.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 38,819 shares of company stock worth $16,885,492. 0.33% of the stock is currently owned by insiders.

Caterpillar Price Performance

Caterpillar stock opened at $480.99 on Thursday. The stock has a market cap of $225.33 billion, a P/E ratio of 24.47, a price-to-earnings-growth ratio of 2.90 and a beta of 1.46. The company has a fifty day simple moving average of $434.48 and a 200-day simple moving average of $376.35. Caterpillar Inc. has a 12-month low of $267.30 and a 12-month high of $485.34. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 1.50.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data 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 for the quarter, compared to analysts' expectations of $16.14 billion. During the same period last year, the firm posted $5.99 earnings per share. Caterpillar's revenue for the quarter was down .7% on a year-over-year basis. Equities analysts expect that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Bank of America raised their target price on Caterpillar from $495.00 to $517.00 and gave the company a "buy" rating in a report on Monday, September 22nd. Robert W. Baird upped their target price on shares of Caterpillar from $495.00 to $540.00 and gave the stock an "outperform" rating in a research note on Wednesday, September 17th. Evercore ISI raised shares of Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 target price on the stock in a research note on Tuesday, August 19th. Melius Research upgraded shares of Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 price target for the company in a research note on Wednesday, July 9th. Finally, Jefferies Financial Group restated a "buy" rating and issued a $500.00 price target on shares of Caterpillar in a research note on Friday, August 29th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $466.53.

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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