Park Avenue Securities LLC Reduces Holdings in Caterpillar Inc. $CAT

Key Points

• Park Avenue Securities LLC reduced its stake in Caterpillar Inc. by 17.6%, ending the quarter with 20,186 shares valued at approximately $7.8 million.
• Institutional ownership of Caterpillar stock is significant, with 70.98% held by various institutional investors, including increases from firms like MIRAE ASSET GLOBAL ETFS and Fiduciary Financial Group LLC.
• Recent insider transactions show Director Susan C. Schwab and Chairman Donald J. Umpleby III selling a combined total of 21,653 shares worth about $9 million, reflecting strategic adjustments in their holdings.

Park Avenue Securities LLC decreased its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 17.6% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 20,186 shares of the industrial products company's stock after selling 4,304 shares during the quarter. Park Avenue Securities LLC's holdings in Caterpillar were worth $7,836,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Family Legacy Financial Solutions LLC purchased a new position in Caterpillar in the second quarter worth $32,000. Compass Financial Services Inc raised its stake in shares of Caterpillar by 49.2% during the 1st quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company's stock valued at $31,000 after purchasing an additional 31 shares during the period. Mattson Financial Services LLC bought a new stake in shares of Caterpillar during the 4th quarter valued at $39,000. Curat Global LLC bought a new stake in shares of Caterpillar during the 1st quarter valued at $33,000. Finally, Redmont Wealth Advisors LLC bought a new position in Caterpillar in the 1st quarter worth about $33,000. Institutional investors own 70.98% of the company's stock.

Caterpillar Price Performance

Shares of NYSE:CAT traded up $5.43 during mid-day trading on Monday, reaching $471.97. The stock had a trading volume of 3,179,376 shares, compared to its average volume of 2,433,813. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 1.50. The company has a market cap of $221.11 billion, a P/E ratio of 24.01, a price-to-earnings-growth ratio of 2.84 and a beta of 1.41. Caterpillar Inc. has a 1 year low of $267.30 and a 1 year high of $473.24. The business's 50 day moving average price is $426.53 and its 200 day moving average price is $370.38.

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

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. JPMorgan Chase & Co. upped their price objective on Caterpillar from $475.00 to $520.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Oppenheimer reduced their price objective on Caterpillar from $493.00 to $480.00 and set an "outperform" rating for the company in a research report on Friday, August 29th. DA Davidson raised their price objective on Caterpillar from $331.00 to $388.00 and gave the company a "neutral" rating in a research report on Tuesday, July 22nd. Truist Financial raised their price objective on Caterpillar from $414.00 to $507.00 and gave the company a "buy" rating in a research report on Wednesday, August 6th. Finally, Bank of America lifted their target price on Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $462.87.

Insider Activity

In other news, insider Jason Kaiser sold 2,161 shares of the firm's stock in a transaction dated Monday, August 11th. The stock was sold at an average price of $417.70, for a total transaction of $902,649.70. Following the sale, the insider directly owned 8,632 shares in the company, valued at $3,605,586.40. This trade represents a 20.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Chairman Donald J. Umpleby III sold 17,168 shares of Caterpillar stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $412.87, for a total value of $7,088,152.16. Following the completion of the sale, the chairman owned 482,505 shares in the company, valued at approximately $199,211,839.35. The trade was a 3.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 21,653 shares of company stock worth $8,943,642. Insiders own 0.33% of the company's stock.

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.