RNC Capital Management LLC Boosts Holdings in Caterpillar Inc. $CAT

Key Points

• RNC Capital Management LLC increased its position in Caterpillar Inc. by 83.5% during Q1, owning 4,280 shares valued at $1,412,000.
• Caterpillar reported Q2 earnings of $4.72 per share, missing estimates, with revenue of $16.57 billion, slightly exceeding expectations.
• The company declared a quarterly dividend of $1.51 per share, representing an annualized yield of 1.4%, an increase from its previous dividend of $1.41.

RNC Capital Management LLC boosted its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 83.5% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 4,280 shares of the industrial products company's stock after buying an additional 1,948 shares during the period. RNC Capital Management LLC's holdings in Caterpillar were worth $1,412,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Victrix Investment Advisors purchased a new position in Caterpillar in the 4th quarter valued at $2,090,000. Charles Schwab Investment Management Inc. grew its position in Caterpillar by 0.5% in the 1st 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 buying an additional 15,347 shares during the last quarter. Pacific Point Advisors LLC purchased a new position in Caterpillar in the 4th quarter valued at $579,000. Wealth Enhancement Advisory Services LLC boosted its position 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 purchasing an additional 30,070 shares in the last quarter. Finally, Crestwood Advisors Group LLC boosted its position 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 purchasing an additional 743 shares in the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Caterpillar Stock Up 0.7%

Shares of NYSE:CAT opened at $423.09 on Monday. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.81 and a current ratio of 1.34. Caterpillar Inc. has a 1 year low of $267.30 and a 1 year high of $441.15. The stock has a market capitalization of $198.21 billion, a P/E ratio of 21.52, a PEG ratio of 2.57 and a beta of 1.41. The stock has a 50-day simple moving average of $417.05 and a 200-day simple moving average of $362.54.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly 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). The company had revenue of $16.57 billion during the quarter, compared to analysts' expectations of $16.14 billion. Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.The firm's revenue was down .7% compared to the same quarter last year. During the same quarter in the prior year, the company earned $5.99 EPS. Equities analysts forecast that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 20th. Investors of record on Monday, July 21st were given a dividend of $1.51 per share. The ex-dividend date of this dividend was Monday, July 21st. This represents a $6.04 annualized dividend 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 is currently 30.72%.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on CAT shares. JPMorgan Chase & Co. boosted their target price on shares of Caterpillar from $475.00 to $520.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 6th. Melius Research upgraded 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 report on Wednesday, July 9th. UBS Group upgraded shares of Caterpillar from a "sell" rating to a "neutral" rating and boosted their target price for the stock from $272.00 to $357.00 in a research report on Friday, May 16th. Truist Financial lifted their price target on Caterpillar from $414.00 to $507.00 and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Finally, Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Caterpillar in a research note on Monday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, Caterpillar has a consensus rating of "Moderate Buy" and an average target price of $457.20.

Insider Activity at Caterpillar

In related news, Director Susan C. Schwab sold 2,324 shares of the company's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $410.00, for a total transaction of $952,840.00. Following the sale, the director directly owned 6,917 shares of the company's stock, valued at approximately $2,835,970. This represents a 25.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Chairman Donald J. Umpleby III sold 17,168 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $412.87, for a total value of $7,088,152.16. Following the sale, the chairman directly owned 482,505 shares in the company, valued at approximately $199,211,839.35. This represents a 3.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 21,653 shares of company stock valued at $8,943,642. Corporate insiders own 0.33% of the company's stock.

Caterpillar 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.

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