Handelsbanken Fonder AB Buys 76,641 Shares of Caterpillar Inc. $CAT

Key Points

• Handelsbanken Fonder increased its Caterpillar position by 59.6% in the second quarter, buying 76,641 shares to reach 205,152 shares valued at approximately $218.5 million.
• Caterpillar reported a strong quarter, with earnings of $8.17 per share and revenue of $20.54 billion, beating analyst expectations and posting 23.7% year-over-year revenue growth.
• The company raised its quarterly dividend from $1.51 to $1.63 per share, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $995.52.

Handelsbanken Fonder AB increased its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 59.6% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 205,152 shares of the industrial products company's stock after purchasing an additional 76,641 shares during the quarter. Caterpillar makes up about 0.6% of Handelsbanken Fonder AB's portfolio, making the stock its 29th biggest position. Handelsbanken Fonder AB's holdings in Caterpillar were worth $218,466,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of CAT. Diamant Asset Management Inc. lifted its holdings in shares of Caterpillar by 68,427.2% in the 1st quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after buying an additional 3,136,020 shares during the period. Capital International Investors purchased a new position in shares of Caterpillar during the fourth quarter valued at $1,225,317,000. Northwestern Mutual Wealth Management Co. increased its stake in shares of Caterpillar by 573.1% during the fourth 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 period. Bank of America Corp DE raised its holdings in shares of Caterpillar by 16.0% in the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock valued at $3,860,457,000 after acquiring an additional 928,974 shares in the last quarter. Finally, Cynosure Group LLC lifted its stake in Caterpillar by 8,359.6% in the fourth quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company's stock worth $294,314,000 after acquiring an additional 507,681 shares during the period. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Caterpillar Trading Down 0.7%

NYSE:CAT opened at $836.29 on Tuesday. The company has a market capitalization of $384.42 billion, a P/E ratio of 35.98, a PEG ratio of 1.52 and a beta of 1.60. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65. Caterpillar Inc. has a 12 month low of $405.46 and a 12 month high of $1,073.46. The firm has a fifty day simple moving average of $920.45 and a 200-day simple moving average of $821.82.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The company had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. During the same quarter last year, the business posted $4.72 EPS. The firm's quarterly revenue was up 23.7% on a year-over-year basis. On average, equities research analysts anticipate that Caterpillar Inc. will post 26.3 earnings per share for the current year.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be paid a $1.63 dividend. The ex-dividend date is Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. Caterpillar's dividend payout ratio (DPR) is 28.06%.

Insider Transactions at Caterpillar

In other Caterpillar news, insider Denise C. Johnson sold 12,605 shares of the firm's stock in a transaction that occurred on 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 completion of the transaction, the insider directly owned 49,825 shares of the company's stock, valued at approximately $45,236,615.75. This trade represents a 20.19% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CAO William E. Schaupp sold 360 shares of Caterpillar stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $906.00, for a total transaction of $326,160.00. Following the sale, the chief accounting officer owned 530 shares of the company's stock, valued at approximately $480,180. The trade was a 40.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 19,161 shares of company stock valued at $17,407,424 in the last ninety days. Corporate insiders own 0.33% of the company's stock.

Wall Street Analyst Weigh In

CAT has been the topic of a number of research reports. Citigroup raised their target price on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the company a "buy" rating in a research report on Tuesday, July 14th. Wall Street Zen raised shares of Caterpillar from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Weiss Ratings reiterated a "buy (b-)" rating on shares of Caterpillar in a research note on Wednesday, August 5th. Oppenheimer reissued an "outperform" rating and set a $1,118.00 price objective on shares of Caterpillar in a report on Tuesday, August 4th. Finally, Wells Fargo & Company boosted their price objective on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 23rd. Thirteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, Caterpillar currently has an average rating of "Moderate Buy" and an average price target of $995.52.

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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