Lombard Odier Asset Management Switzerland SA Acquires New Stake in Caterpillar Inc. $CAT

Key Points

• Lombard Odier Asset Management Switzerland SA opened a new stake in Caterpillar, buying 11,265 shares valued at about $7.98 million in the first quarter.
• Caterpillar reported better-than-expected quarterly results, with EPS of $5.54 versus $4.65 expected and revenue of $17.41 billion, up 22.2% year over year.
• The company also raised its quarterly dividend to $1.63 per share from $1.51, while analysts remain broadly positive with a Moderate Buy consensus and an average price target of $980.57.

Lombard Odier Asset Management Switzerland SA bought a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 11,265 shares of the industrial products company's stock, valued at approximately $7,981,000.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Diamant Asset Management Inc. grew its holdings in shares of Caterpillar by 68,427.2% during the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after purchasing an additional 3,136,020 shares in the last quarter. Capital International Investors purchased a new stake in Caterpillar in the fourth quarter valued at approximately $1,225,317,000. Northwestern Mutual Wealth Management Co. lifted its position in 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 purchasing an additional 1,281,087 shares during the last quarter. Bank of America Corp DE grew its stake in Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock worth $3,860,457,000 after buying an additional 928,974 shares in the last quarter. Finally, Cynosure Group LLC increased its holdings in shares of Caterpillar by 8,359.6% in the 4th quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company's stock worth $294,314,000 after buying an additional 507,681 shares during the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Caterpillar Stock Performance

Caterpillar stock opened at $889.23 on Friday. The firm has a fifty day simple moving average of $928.88 and a two-hundred day simple moving average of $804.12. 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 $405.46 and a twelve month high of $1,073.46. The company has a market capitalization of $409.57 billion, a PE ratio of 44.26, a P/E/G ratio of 1.74 and a beta of 1.57.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The firm had revenue of $17.41 billion for the quarter, compared to analysts' expectations of $16.53 billion. During the same period last year, the firm earned $4.25 earnings per share. The company's revenue for the quarter was up 22.2% compared to the same quarter last year. Research analysts expect that Caterpillar Inc. will post 24.87 EPS for the current year.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be given a $1.63 dividend. The ex-dividend date is Monday, July 20th. This is an increase from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a yield of 0.7%. Caterpillar's dividend payout ratio is presently 32.45%.

Analysts Set New Price Targets

Several analysts have recently weighed in on the stock. Weiss Ratings restated a "buy (b-)" rating on shares of Caterpillar in a research report on Friday, May 8th. UBS Group reissued a "neutral" rating and issued a $900.00 target price on shares of Caterpillar in a research note on Tuesday, June 2nd. Wolfe Research raised their price target on Caterpillar from $670.00 to $750.00 and gave the company an "outperform" rating in a research report on Tuesday, March 31st. Wells Fargo & Company lifted their price target on Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a research note on Tuesday, June 23rd. Finally, Jefferies Financial Group increased their price objective on Caterpillar from $900.00 to $1,045.00 and gave the company a "buy" rating in a research report on Friday, May 1st. Fifteen research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, Caterpillar has an average rating of "Moderate Buy" and an average price target of $980.57.

Insider Activity

In other news, insider Lange Bob De sold 24,222 shares of the stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total transaction of $22,354,968.24. Following the completion of the sale, the insider owned 86,029 shares of the company's stock, valued at approximately $79,397,884.68. This represents a 21.97% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of Caterpillar stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the completion of the transaction, the chief financial officer directly owned 52,935 shares in the company, valued at approximately $48,631,913.85. The trade was a 22.85% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 95,773 shares of company stock valued at $87,642,635. Corporate insiders own 0.33% of the company's stock.

Caterpillar Company 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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