Proficio Capital Partners LLC Invests $2.90 Million in Caterpillar Inc. $CAT

Key Points

• Proficio Capital Partners opened a new Caterpillar position worth approximately $2.90 million by purchasing 2,720 shares in the second quarter. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported strong quarterly results, with earnings per share of $8.17 versus the $6.22 consensus estimate and revenue of $20.54 billion, up 23.7% year over year.
• The company raised its quarterly dividend to $1.63 per share, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $995.52. CEO Joseph Creed separately sold 32,401 shares worth about $26.2 million.

Proficio Capital Partners LLC bought a new stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund bought 2,720 shares of the industrial products company's stock, valued at approximately $2,896,000.

Several other institutional investors and hedge funds have also bought and sold shares of CAT. BlackRock Inc. acquired a new position in shares of Caterpillar during the second quarter valued at about $40,457,153,000. State Street Corp boosted its position in shares of Caterpillar by 1.1% during the 4th quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock worth $20,273,039,000 after purchasing an additional 385,204 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Caterpillar by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company's stock valued at $6,072,572,000 after buying an additional 94,524 shares during the period. Fisher Asset Management LLC increased its position in Caterpillar by 0.6% in the 4th quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock valued at $5,438,408,000 after buying an additional 54,069 shares in the last quarter. Finally, Bank of America Corp DE raised its stake in Caterpillar by 16.0% during 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 during the period. 70.98% of the stock is owned by institutional investors.

Insider Activity

In other news, CEO Joseph E. Creed sold 32,401 shares of the company's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the sale, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. This represents a 48.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.33% of the stock is currently owned by insiders.

Caterpillar Stock Performance

Shares of Caterpillar stock opened at $813.51 on Tuesday. The company has a market cap of $373.95 billion, a PE ratio of 35.00, a price-to-earnings-growth ratio of 1.41 and a beta of 1.60. Caterpillar Inc. has a 52 week low of $416.44 and a 52 week high of $1,073.46. The business has a 50 day moving average price of $868.12 and a 200-day moving average price of $839.26. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT - Get Free Report) last announced its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The company had revenue of $20.54 billion for the quarter, compared to analysts' expectations of $19.34 billion. During the same quarter in the previous year, the firm earned $4.72 earnings per share. Caterpillar's quarterly revenue was up 23.7% on a year-over-year basis. Equities analysts anticipate that Caterpillar Inc. will post 27.34 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th were issued a dividend of $1.63 per share. The ex-dividend date of this dividend was Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's payout ratio is presently 28.06%.

Analyst Ratings Changes

CAT has been the subject of a number of research reports. UBS Group raised their price objective on Caterpillar from $900.00 to $925.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. DA Davidson upped their target price on Caterpillar from $845.00 to $882.00 and gave the stock a "neutral" rating in a research report on Thursday, August 6th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $1,002.00 target price on shares of Caterpillar in a report on Wednesday, August 5th. Erste Group Bank lowered shares of Caterpillar from a "buy" rating to a "hold" rating in a research note on Monday, July 27th. Finally, Rothschild & Co Redburn upped their price objective on shares of Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $995.52.

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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