Primecap Management Co. CA Sells 44,961 Shares of Caterpillar Inc. (NYSE:CAT)

Key Points

• Primecap Management Co. CA has reduced its stake in Caterpillar Inc. by selling 44,961 shares, owning now 1,379,485 shares, which is about 0.29% of the company valued at approximately $454.95 million.
• Caterpillar's recent earnings report showed a miss on earnings estimates with $4.72 per share compared to the expected $4.88, although revenue exceeded estimates at $16.57 billion.
• The company declared a quarterly dividend of $1.51 per share, up from the previous $1.41, with a current yield of 1.4%, reflecting its ongoing commitment to returning capital to shareholders.

Primecap Management Co. CA lessened its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 3.2% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 1,379,485 shares of the industrial products company's stock after selling 44,961 shares during the quarter. Primecap Management Co. CA owned approximately 0.29% of Caterpillar worth $454,954,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also modified their holdings of the company. Victrix Investment Advisors purchased a new position in shares of Caterpillar during the 4th quarter worth $2,090,000. Pacific Point Advisors LLC purchased a new position in shares of Caterpillar during the 4th quarter worth $579,000. Wealth Enhancement Advisory Services LLC boosted its stake in shares of Caterpillar by 18.6% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 191,640 shares of the industrial products company's stock worth $63,202,000 after acquiring an additional 30,070 shares during the last quarter. Crestwood Advisors Group LLC boosted its stake in shares of Caterpillar by 3.4% during the 1st quarter. Crestwood Advisors Group LLC now owns 22,689 shares of the industrial products company's stock worth $7,483,000 after acquiring an additional 743 shares during the last quarter. Finally, Liberty Square Wealth Partners LLC boosted its stake in shares of Caterpillar by 5.8% during the 1st quarter. Liberty Square Wealth Partners LLC now owns 1,636 shares of the industrial products company's stock worth $540,000 after acquiring an additional 90 shares during the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Analyst Ratings Changes

A number of research firms recently weighed in on CAT. Robert W. Baird lifted their target price on shares of Caterpillar from $395.00 to $422.00 and gave the company an "outperform" rating in a research note on Friday, June 20th. UBS Group upgraded shares of Caterpillar from a "sell" rating to a "neutral" rating and lifted their target price for the company from $272.00 to $357.00 in a research note on Friday, May 16th. Sanford C. Bernstein restated a "market perform" rating on shares of Caterpillar in a research note on Monday, July 14th. Oppenheimer lifted their target price on shares of Caterpillar from $395.00 to $483.00 and gave the company an "outperform" rating in a research note on Thursday, July 17th. Finally, Morgan Stanley upgraded shares of Caterpillar from an "underweight" rating to an "equal weight" rating and lowered their target price for the company from $300.00 to $283.00 in a research note on Wednesday, April 16th. Seven investment analysts have rated the stock with a hold rating, ten have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $419.33.

Caterpillar Stock Performance

Caterpillar stock opened at $433.54 on Wednesday. The company's 50-day moving average price is $389.11 and its 200-day moving average price is $354.92. Caterpillar Inc. has a twelve month low of $267.30 and a twelve month high of $441.15. The company has a quick ratio of 0.77, a current ratio of 1.32 and a debt-to-equity ratio of 1.43. The company has a market cap of $204.21 billion, a PE ratio of 21.13, a price-to-earnings-growth ratio of 2.71 and a beta of 1.40.

Caterpillar (NYSE:CAT - Get Free Report) last posted its earnings results on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16). Caterpillar had a return on equity of 53.77% and a net margin of 15.71%. The business had revenue of $16.57 billion during the quarter, compared to the consensus estimate of $16.14 billion. During the same quarter last year, the firm earned $5.99 earnings per share. The business's quarterly revenue was down .7% on a year-over-year basis. On average, equities research analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 20th. Investors of record on Monday, July 21st will be issued a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a yield of 1.4%. The ex-dividend date is Monday, July 21st. This is a positive change from Caterpillar's previous quarterly dividend of $1.41. Caterpillar's payout ratio is currently 29.43%.

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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