Meyer Handelman Co. Reduces Stock Position in Caterpillar Inc. $CAT

Key Points

• Meyer Handelman Co. has decreased its stake in Caterpillar Inc. by 0.7%, now holding 123,276 shares valued at approximately $47.9 million, which constitutes about 1.6% of its total portfolio.
• Multiple hedge funds have made significant moves regarding Caterpillar, with Wellington Management increasing its stake by 72.2%, highlighting a trend of institutional investment in the company.
• Analyst ratings for Caterpillar have improved, with several firms raising their price targets, including Bank of America, which increased its target from $495 to $517, reflecting growing confidence in the stock.

Meyer Handelman Co. reduced its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 0.7% in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 123,276 shares of the industrial products company's stock after selling 860 shares during the period. Caterpillar accounts for about 1.6% of Meyer Handelman Co.'s holdings, making the stock its 14th biggest holding. Meyer Handelman Co.'s holdings in Caterpillar were worth $47,857,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Pacific Point Advisors LLC purchased a new position in shares of Caterpillar during the 4th quarter worth approximately $579,000. Brighton Jones LLC raised its holdings in shares of Caterpillar by 51.5% in the 4th quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock valued at $2,688,000 after buying an additional 2,519 shares during the period. Mattson Financial Services LLC acquired a new position in Caterpillar during the 4th quarter worth about $39,000. Mascagni Wealth Management Inc. acquired a new stake in shares of Caterpillar during the fourth quarter worth about $134,000. Finally, Wellington Management Group LLP lifted its holdings in Caterpillar by 72.2% during the 4th quarter. Wellington Management Group LLP now owns 88,936 shares of the industrial products company's stock worth $32,262,000 after buying an additional 37,282 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Analyst Ratings Changes

A number of equities analysts have recently commented on CAT shares. Bank of America boosted their price objective on Caterpillar from $495.00 to $517.00 and gave the stock a "buy" rating in a research report on Monday. Evercore ISI upgraded Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 price target on the stock in a research note on Tuesday, August 19th. Truist Financial increased their price objective on Caterpillar from $414.00 to $507.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Robert W. Baird upped their price objective on shares of Caterpillar from $495.00 to $540.00 and gave the company an "outperform" rating in a research note on Wednesday, September 17th. Finally, Melius raised Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 price objective for the company in a research note on Wednesday, July 9th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $464.33.

Caterpillar Stock Down 1.3%

Shares of NYSE CAT opened at $463.76 on Friday. The firm's 50-day moving average is $429.93 and its two-hundred day moving average is $372.59. The company has a market capitalization of $217.26 billion, a PE ratio of 23.59, a price-to-earnings-growth ratio of 2.86 and a beta of 1.41. Caterpillar Inc. has a 12-month low of $267.30 and a 12-month high of $485.34. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.34 and a quick ratio of 0.81.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $4.72 EPS for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16). Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.The company had revenue of $16.57 billion for the quarter, compared to analysts' expectations of $16.14 billion. During the same quarter in the prior year, the business posted $5.99 EPS. The company's revenue for the quarter was down .7% compared to the same quarter last year. Equities analysts anticipate that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Insider Activity

In related news, Director Susan C. Schwab sold 2,324 shares of the stock in a transaction dated Friday, August 15th. The stock was sold at an average price of $410.00, for a total transaction of $952,840.00. Following the transaction, the director directly owned 6,917 shares in the company, valued at approximately $2,835,970. This represents a 25.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Chairman Donald J. Umpleby III sold 17,166 shares of the company's stock in a transaction dated Monday, September 22nd. The shares were sold at an average price of $462.65, for a total transaction of $7,941,849.90. Following the transaction, the chairman directly owned 465,339 shares of the company's stock, valued at approximately $215,289,088.35. This represents a 3.56% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 38,819 shares of company stock valued at $16,885,492 over the last quarter. Company insiders own 0.33% of the company's stock.

About Caterpillar

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.

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