FARMERS & MERCHANTS TRUST Co OF LONG BEACH Makes New Investment in Caterpillar Inc. $CAT

Key Points

• Farmers & Merchants Trust Co of Long Beach made a new investment in Caterpillar Inc. by purchasing 1,897 shares valued at approximately $736,000 during the second quarter.
• Wall Street analysts have increased their price targets for Caterpillar, with Bank of America raising its target from $495.00 to $517.00 and Melius Research upgrading the stock to a "strong-buy" rating.
• Insider activity includes Chairman Donald J. Umpleby III selling 17,166 shares for nearly $7.94 million, which has reduced his ownership by 3.56%.

FARMERS & MERCHANTS TRUST Co OF LONG BEACH purchased a new stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm purchased 1,897 shares of the industrial products company's stock, valued at approximately $736,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Family Legacy Financial Solutions LLC bought a new stake in Caterpillar during the second quarter valued at about $32,000. Compass Financial Services Inc boosted its stake in Caterpillar by 49.2% during the 1st quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company's stock valued at $31,000 after purchasing an additional 31 shares during the period. Curat Global LLC acquired a new stake in Caterpillar in the 1st quarter valued at approximately $33,000. Redmont Wealth Advisors LLC bought a new position in Caterpillar in the 1st quarter worth approximately $33,000. Finally, Maseco LLP acquired a new position in shares of Caterpillar during the second quarter worth approximately $45,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CAT. Bank of America boosted their target price on shares of Caterpillar from $495.00 to $517.00 and gave the stock a "buy" rating in a research report on Monday, September 22nd. Melius Research upgraded shares of Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 price target on the stock in a research report on Wednesday, July 9th. Barclays upped their price objective on shares of Caterpillar from $383.00 to $425.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 6th. Sanford C. Bernstein reissued a "market perform" rating on shares of Caterpillar in a research report on Monday, July 14th. Finally, Oppenheimer lowered their price target on Caterpillar from $493.00 to $480.00 and set an "outperform" rating on the stock in a research note on Friday, August 29th. Two investment analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $464.33.

Insider Activity

In other news, Chairman Donald J. Umpleby III sold 17,166 shares of the company's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $462.65, for a total value of $7,941,849.90. Following the sale, the chairman owned 465,339 shares of the company's stock, valued at approximately $215,289,088.35. This represents a 3.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Susan C. Schwab sold 2,324 shares of Caterpillar stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $410.00, for a total transaction of $952,840.00. Following the transaction, the director directly owned 6,917 shares of the company's stock, valued at $2,835,970. This represents a 25.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 38,819 shares of company stock worth $16,885,492. Corporate insiders own 0.33% of the company's stock.

Caterpillar Stock Up 0.5%

NYSE CAT opened at $466.06 on Monday. Caterpillar Inc. has a 1-year low of $267.30 and a 1-year high of $485.34. The company has a market capitalization of $218.34 billion, a price-to-earnings ratio of 23.71, a PEG ratio of 2.83 and a beta of 1.41. The stock's 50 day moving average is $430.98 and its two-hundred day moving average is $373.99. 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 posted its earnings results on Tuesday, August 5th. The industrial products company reported $4.72 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 company had revenue of $16.57 billion for the quarter, compared to the consensus estimate of $16.14 billion. During the same quarter last year, the business earned $5.99 EPS. Caterpillar's quarterly revenue was down .7% compared to the same quarter last year. Equities analysts forecast that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Company 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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