Jones Kertz & Associates Inc. Invests $6.70 Million in Caterpillar Inc. $CAT

Key Points

• Jones Kertz & Associates Inc. bought a new position in Caterpillar during Q4, acquiring 11,699 shares valued at about $6.70 million, which represents 3.4% of its portfolio and is its 8th-largest holding.
• Wall Street sentiment is positive with a consensus rating of Moderate Buy (16 Buys, 7 Holds, 1 Sell) and a consensus target of $757.55, while several firms have raised price targets up to $900 and the stock trades near its 12‑month high (~$799).
• Caterpillar reported an earnings beat (Q: EPS $5.16 vs. $4.67 est.) and revenue of $19.13 billion, up 17.9% year-over-year, and announced a $1.51 quarterly dividend (annualized $6.04, ~0.8% yield).

Jones Kertz & Associates Inc. bought a new position in Caterpillar Inc. (NYSE:CAT - Free Report) during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 11,699 shares of the industrial products company's stock, valued at approximately $6,702,000. Caterpillar makes up 3.4% of Jones Kertz & Associates Inc.'s portfolio, making the stock its 8th biggest holding.

Several other institutional investors and hedge funds have also modified their holdings of the business. Wellington Management Group LLP boosted its holdings in shares of Caterpillar by 3,949.8% in the 3rd quarter. Wellington Management Group LLP now owns 5,228,058 shares of the industrial products company's stock worth $2,494,568,000 after acquiring an additional 5,098,964 shares in the last quarter. Bank of New York Mellon Corp raised its holdings in shares of Caterpillar by 20.7% in the third quarter. Bank of New York Mellon Corp now owns 3,553,930 shares of the industrial products company's stock valued at $1,695,757,000 after buying an additional 609,023 shares during the last quarter. Legal & General Group Plc raised its holdings in shares of Caterpillar by 2.2% in the third quarter. Legal & General Group Plc now owns 2,802,068 shares of the industrial products company's stock valued at $1,337,007,000 after buying an additional 58,993 shares during the last quarter. Amundi raised its holdings in shares of Caterpillar by 24.3% in the third quarter. Amundi now owns 2,375,710 shares of the industrial products company's stock valued at $1,176,870,000 after buying an additional 464,036 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA raised its holdings in shares of Caterpillar by 0.3% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 1,835,924 shares of the industrial products company's stock valued at $1,051,746,000 after buying an additional 5,510 shares during the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts recently issued reports on the company. Barclays lifted their price target on Caterpillar from $625.00 to $700.00 and gave the company an "equal weight" rating in a report on Tuesday, March 31st. CICC Research began coverage on shares of Caterpillar in a report on Friday, February 6th. They issued an "outperform" rating for the company. Bank of America raised their price target on shares of Caterpillar from $735.00 to $825.00 and gave the company a "buy" rating in a report on Tuesday, February 10th. Jefferies Financial Group raised their price target on shares of Caterpillar from $825.00 to $900.00 and gave the company a "buy" rating in a report on Wednesday, April 15th. Finally, Robert W. Baird set a $805.00 price target on shares of Caterpillar in a report on Friday, January 30th. Sixteen equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $757.55.

Caterpillar Price Performance

Caterpillar stock opened at $798.76 on Tuesday. The business's 50-day simple moving average is $736.37 and its 200 day simple moving average is $638.56. The stock has a market cap of $371.66 billion, a price-to-earnings ratio of 42.44, a P/E/G ratio of 1.86 and a beta of 1.52. Caterpillar Inc. has a 12-month low of $282.46 and a 12-month high of $801.77. The company has a quick ratio of 0.94, a current ratio of 1.44 and a debt-to-equity ratio of 1.44.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Thursday, January 29th. The industrial products company reported $5.16 earnings per share for the quarter, beating the consensus estimate of $4.67 by $0.49. Caterpillar had a net margin of 13.14% and a return on equity of 45.76%. The business had revenue of $19.13 billion for the quarter, compared to analyst estimates of $17.81 billion. During the same period in the prior year, the business posted $5.14 earnings per share. Caterpillar's revenue was up 17.9% compared to the same quarter last year. As a group, research analysts anticipate that Caterpillar Inc. will post 22.85 earnings per share for the current year.

Caterpillar Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 19th. Investors of record on Monday, April 20th will be issued a $1.51 dividend. This represents a $6.04 annualized dividend and a yield of 0.8%. The ex-dividend date is Monday, April 20th. Caterpillar's dividend payout ratio is currently 32.09%.

Insiders Place Their Bets

In related news, insider Anthony D. Fassino sold 10,671 shares of the company's stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $680.45, for a total value of $7,261,081.95. Following the completion of the sale, the insider owned 41,151 shares in the company, valued at approximately $28,001,197.95. This represents a 20.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Rodney Michael Shurman sold 2,278 shares of the company's stock in a transaction dated Monday, February 23rd. The shares were sold at an average price of $759.61, for a total value of $1,730,391.58. Following the completion of the sale, the insider owned 1,443 shares of the company's stock, valued at $1,096,117.23. This represents a 61.22% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 125,950 shares of company stock valued at $88,577,390 over the last three months. 0.33% of the stock is owned by insiders.

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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