HB Wealth Management LLC Purchases 6,311 Shares of Caterpillar Inc. (NYSE:CAT)

Key Points

• HB Wealth Management LLC increased its holdings in Caterpillar Inc. by 16.7%, acquiring a total of 44,115 shares valued at approximately $14.5 million.
• Caterpillar recently declared a quarterly dividend of $1.51 per share, up from $1.41, reflecting a healthy annual yield of 1.39%.
• Despite missing earnings expectations in its latest quarterly results, analysts remain optimistic, with many upgrading their target prices for the stock.

HB Wealth Management LLC lifted its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 16.7% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 44,115 shares of the industrial products company's stock after purchasing an additional 6,311 shares during the period. HB Wealth Management LLC's holdings in Caterpillar were worth $14,549,000 at the end of the most recent reporting period.

Other hedge funds also recently made changes to their positions in the company. Investment Management Corp VA ADV bought a new stake in shares of Caterpillar during the fourth quarter valued at about $33,000. Curat Global LLC bought a new stake in shares of Caterpillar during the first quarter valued at about $33,000. Redmont Wealth Advisors LLC bought a new stake in shares of Caterpillar during the first quarter valued at about $33,000. Quarry LP bought a new stake in shares of Caterpillar during the fourth quarter valued at about $35,000. Finally, Mpwm Advisory Solutions LLC purchased a new position in shares of Caterpillar during the fourth quarter worth about $36,000. 70.98% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Evercore ISI cut their price objective on Caterpillar from $375.00 to $373.00 and set an "in-line" rating for the company in a report on Monday, May 19th. DA Davidson boosted their price objective on Caterpillar from $331.00 to $388.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. JPMorgan Chase & Co. boosted their price objective on Caterpillar from $395.00 to $475.00 and gave the stock an "overweight" rating in a report on Thursday, July 10th. Oppenheimer boosted their price objective on Caterpillar from $395.00 to $483.00 and gave the stock an "outperform" rating in a report on Thursday, July 17th. Finally, Robert W. Baird upped their price objective on Caterpillar from $395.00 to $422.00 and gave the stock an "outperform" rating in a report on Friday, June 20th. Seven equities research analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $419.33.

Insider Buying and Selling at Caterpillar

In related news, Director David Maclennan purchased 375 shares of the business's stock in a transaction that occurred on Wednesday, May 7th. The shares were bought at an average price of $320.70 per share, for a total transaction of $120,262.50. Following the purchase, the director directly owned 6,653 shares of the company's stock, valued at approximately $2,133,617.10. This represents a 5.97% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. 0.33% of the stock is owned by insiders.

Caterpillar Trading Up 1.4%

Shares of Caterpillar stock traded up $5.87 on Wednesday, hitting $435.92. The stock had a trading volume of 1,181,265 shares, compared to its average volume of 2,672,469. The company has a quick ratio of 0.77, a current ratio of 1.32 and a debt-to-equity ratio of 1.43. Caterpillar Inc. has a one year low of $267.30 and a one year high of $436.40. The stock has a market cap of $205.33 billion, a price-to-earnings ratio of 21.24, a PEG ratio of 2.71 and a beta of 1.38. The stock's 50-day simple moving average is $380.25 and its two-hundred day simple moving average is $352.87.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Wednesday, April 30th. The industrial products company reported $4.25 EPS for the quarter, missing analysts' consensus estimates of $4.35 by ($0.10). The business had revenue of $14.25 billion for the quarter, compared to the consensus estimate of $14.64 billion. Caterpillar had a net margin of 15.71% and a return on equity of 53.77%. The company's revenue for the quarter was down 9.8% on a year-over-year basis. During the same period in the previous year, the company earned $5.60 EPS. As a group, sell-side analysts predict that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 20th. Investors of record on Monday, July 21st will be paid a $1.51 dividend. The ex-dividend date is Monday, July 21st. This represents a $6.04 annualized dividend and a dividend yield of 1.39%. This is an increase from Caterpillar's previous quarterly dividend of $1.41. Caterpillar's dividend payout ratio is presently 29.43%.

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.