Goldenstone Wealth Management LLC Takes $963,000 Position in Caterpillar Inc. $CAT

Key Points

• Goldenstone Wealth Management initiated a new stake in Caterpillar, buying 1,681 shares valued at about $963,000. The position represents roughly 0.7% of the firm’s portfolio.
• Caterpillar reported strong quarterly results, with EPS of $5.54 and revenue of $17.42 billion, both ahead of analyst expectations. Revenue also rose 22.2% year over year.
• Despite the upbeat results, insider selling has been notable, with executives Anthony D. Fassino and Denise C. Johnson selling shares in May. Analysts remain generally constructive, with a Moderate Buy consensus and an average price target of $923.14.

Goldenstone Wealth Management LLC acquired a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 1,681 shares of the industrial products company's stock, valued at approximately $963,000. Caterpillar comprises approximately 0.7% of Goldenstone Wealth Management LLC's portfolio, making the stock its 28th biggest holding.

A number of other hedge funds also recently made changes to their positions in CAT. Pacific Point Advisors LLC bought a new position in shares of Caterpillar during the fourth quarter worth about $579,000. Brighton Jones LLC raised its position in shares of Caterpillar by 51.5% during the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock worth $2,688,000 after acquiring an additional 2,519 shares during the last quarter. United Bank raised its position in shares of Caterpillar by 108.5% during the second quarter. United Bank now owns 4,083 shares of the industrial products company's stock worth $1,585,000 after acquiring an additional 2,125 shares during the last quarter. Schnieders Capital Management LLC. increased its holdings in Caterpillar by 3.9% in the second quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock worth $3,551,000 after purchasing an additional 347 shares in the last quarter. Finally, Alliancebernstein L.P. lifted its stake in Caterpillar by 6.5% in the second quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company's stock valued at $222,120,000 after buying an additional 34,846 shares during the period. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Price Performance

Shares of NYSE:CAT opened at $873.91 on Thursday. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. Caterpillar Inc. has a twelve month low of $336.24 and a twelve month high of $931.35. The stock's 50 day moving average is $785.30 and its 200-day moving average is $687.48. The firm has a market capitalization of $402.52 billion, a price-to-earnings ratio of 43.50, a PEG ratio of 1.70 and a beta of 1.63.

Caterpillar (NYSE:CAT - Get Free Report) last announced its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.65 by $0.89. The company had revenue of $17.42 billion for the quarter, compared to analysts' expectations of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.Caterpillar's quarterly revenue was up 22.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $4.25 earnings per share. Sell-side analysts forecast that Caterpillar Inc. will post 24.67 EPS for the current fiscal year.

Caterpillar Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, May 19th. Investors of record on Monday, April 20th were given a dividend of $1.51 per share. The ex-dividend date of this dividend was Monday, April 20th. This represents a $6.04 annualized dividend and a dividend yield of 0.7%. Caterpillar's payout ratio is presently 30.06%.

Insider Activity at Caterpillar

In other Caterpillar news, insider Anthony D. Fassino sold 16,283 shares of the business's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $916.80, for a total value of $14,928,254.40. Following the transaction, the insider owned 46,041 shares of the company's stock, valued at approximately $42,210,388.80. The trade was a 26.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Denise C. Johnson sold 12,605 shares of the business's stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the transaction, the insider directly owned 49,825 shares in the company, valued at approximately $45,236,615.75. This represents a 20.19% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 100,551 shares of company stock valued at $91,170,351 over the last 90 days. Corporate insiders own 0.33% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Wells Fargo & Company raised their price objective on shares of Caterpillar from $960.00 to $1,050.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. JPMorgan Chase & Co. raised their price objective on shares of Caterpillar from $860.00 to $1,125.00 and gave the stock an "overweight" rating in a research report on Friday, May 1st. UBS Group reaffirmed a "neutral" rating and set a $677.00 price objective on shares of Caterpillar in a research report on Monday, February 2nd. Rothschild & Co Redburn raised their price objective on shares of Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a research report on Thursday, May 14th. Finally, Jefferies Financial Group raised their price objective on shares of Caterpillar from $900.00 to $1,045.00 and gave the stock a "buy" rating in a research report 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 MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $923.14.

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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