Redwood Investment Management LLC Makes New Investment in Caterpillar Inc. $CAT

Key Points

• Redwood Investment Management LLC invested approximately $1.38 million in Caterpillar Inc. during the first quarter by purchasing 4,198 shares.
• Caterpillar reported earnings per share (EPS) of $4.72 for the last quarter, missing analysts' estimates of $4.88, while revenue was $16.57 billion, exceeding expectations.
• The company recently declared a quarterly dividend of $1.51, which represents an annualized yield of 1.4% and a positive change from its previous dividend of $1.41.

Redwood Investment Management LLC bought a new position in Caterpillar Inc. (NYSE:CAT - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 4,198 shares of the industrial products company's stock, valued at approximately $1,384,000.

Several other hedge funds have also recently modified their holdings of CAT. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in Caterpillar by 8.6% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 3,940,391 shares of the industrial products company's stock valued at $1,429,416,000 after purchasing an additional 312,878 shares in the last quarter. GAMMA Investing LLC raised its stake in Caterpillar by 43,447.3% during the first quarter. GAMMA Investing LLC now owns 3,730,259 shares of the industrial products company's stock valued at $1,230,239,000 after purchasing an additional 3,721,693 shares in the last quarter. Charles Schwab Investment Management Inc. raised its stake in Caterpillar by 0.5% during the first quarter. Charles Schwab Investment Management Inc. now owns 3,304,448 shares of the industrial products company's stock valued at $1,089,798,000 after purchasing an additional 15,347 shares in the last quarter. Goldman Sachs Group Inc. raised its stake in Caterpillar by 9.1% during the first quarter. Goldman Sachs Group Inc. now owns 3,229,080 shares of the industrial products company's stock valued at $1,064,951,000 after purchasing an additional 268,300 shares in the last quarter. Finally, Invesco Ltd. raised its stake in Caterpillar by 5.0% during the first quarter. Invesco Ltd. now owns 3,141,936 shares of the industrial products company's stock valued at $1,036,211,000 after purchasing an additional 150,533 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently issued reports on the stock. JPMorgan Chase & Co. upped their price target on shares of Caterpillar from $475.00 to $520.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. UBS Group raised shares of Caterpillar from a "sell" rating to a "neutral" rating and increased their target price for the company from $272.00 to $357.00 in a research note on Friday, May 16th. Melius Research raised shares of Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 target price on the stock in a research note on Wednesday, July 9th. Citigroup increased their target price on shares of Caterpillar from $460.00 to $500.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Finally, Baird R W raised shares of Caterpillar from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 13th. Two equities 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, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $455.53.

Caterpillar Stock Down 3.5%

NYSE CAT traded down $15.35 on Monday, reaching $419.56. 3,669,497 shares of the stock traded hands, compared to its average volume of 3,232,065. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.81 and a current ratio of 1.34. The company has a fifty day moving average price of $412.74 and a 200-day moving average price of $360.23. The company has a market cap of $196.55 billion, a price-to-earnings ratio of 21.34, a PEG ratio of 2.53 and a beta of 1.41. Caterpillar Inc. has a 12 month low of $267.30 and a 12 month high of $441.15.

Caterpillar (NYSE:CAT - Get Free Report) last issued 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 net margin of 14.95% and a return on equity of 48.95%. The firm had revenue of $16.57 billion for the quarter, compared to the consensus estimate of $16.14 billion. During the same period last year, the firm earned $5.99 earnings per share. The company's revenue for the quarter was down .7% on a year-over-year basis. As a group, 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 was paid on Wednesday, August 20th. Stockholders of record on Monday, July 21st were issued a $1.51 dividend. The ex-dividend date was Monday, July 21st. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.4%. This is an increase from Caterpillar's previous quarterly dividend of $1.41. Caterpillar's dividend payout ratio (DPR) is 30.72%.

Insider Transactions at Caterpillar

In related news, insider Jason Kaiser sold 2,161 shares of the stock in a transaction that occurred on Monday, August 11th. The shares were sold at an average price of $417.70, for a total value of $902,649.70. Following the completion of the transaction, the insider directly owned 8,632 shares of the company's stock, valued at $3,605,586.40. This trade represents a 20.02% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Susan C. Schwab sold 2,324 shares of the stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $410.00, for a total transaction of $952,840.00. Following the completion of the transaction, the director directly owned 6,917 shares of the company's stock, valued at $2,835,970. The trade was a 25.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.33% of the stock is currently owned by company insiders.

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.