Russell Investments Group Ltd. Acquires 15,455 Shares of Caterpillar Inc. (NYSE:CAT)

Key Points

• Russell Investments Group Ltd. increased its stake in Caterpillar Inc. by 9.8% during Q1, owning a total of 173,702 shares valued at approximately $57.3 million.
• Caterpillar's quarterly earnings missed expectations, reporting $4.72 earnings per share against a consensus estimate of $4.88, despite revenue exceeding projections at $16.57 billion.
• The company announced a quarterly dividend increase, raising it from $1.41 to $1.51 per share, representing an annualized dividend of $6.04 and a yield of 1.5%.

Russell Investments Group Ltd. grew its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 9.8% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 173,702 shares of the industrial products company's stock after acquiring an additional 15,455 shares during the quarter. Russell Investments Group Ltd.'s holdings in Caterpillar were worth $57,284,000 at the end of the most recent quarter.

A number of other large investors have also recently modified their holdings of the business. Northern Trust Corp boosted its position in shares of Caterpillar by 11.8% during the 4th quarter. Northern Trust Corp now owns 6,847,330 shares of the industrial products company's stock valued at $2,483,937,000 after acquiring an additional 724,477 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Caterpillar by 8.6% during the 4th 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 acquiring an additional 312,878 shares during the last quarter. GAMMA Investing LLC boosted its position in shares of Caterpillar by 43,447.3% during the 1st quarter. GAMMA Investing LLC now owns 3,730,259 shares of the industrial products company's stock valued at $1,230,239,000 after acquiring an additional 3,721,693 shares during the last quarter. Charles Schwab Investment Management Inc. boosted its position in shares of Caterpillar by 0.5% during 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 acquiring an additional 15,347 shares during the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in shares of Caterpillar by 9.1% during the 1st 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 acquiring an additional 268,300 shares during the last quarter. Institutional investors own 70.98% of the company's stock.

Caterpillar Trading Down 2.4%

CAT stock traded down $10.09 during midday trading on Friday, hitting $407.41. The company had a trading volume of 3,105,803 shares, compared to its average volume of 3,164,488. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 1.50. Caterpillar Inc. has a 52 week low of $267.30 and a 52 week high of $441.15. The stock's 50 day moving average price is $399.63 and its 200 day moving average price is $355.92. The stock has a market cap of $190.86 billion, a price-to-earnings ratio of 21.15, a PEG ratio of 2.43 and a beta of 1.40.

Caterpillar (NYSE:CAT - Get Free Report) last announced 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). Caterpillar had a net margin of 14.95% and a return on equity of 48.95%. The company had revenue of $16.57 billion during the quarter, compared to the consensus estimate of $16.14 billion. During the same quarter in the previous year, the firm posted $5.99 EPS. The business's revenue for the quarter was down .7% compared to the same quarter last year. As a group, equities research analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently announced 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 is a boost from Caterpillar's previous quarterly dividend of $1.41. This represents a $6.04 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date is Monday, July 21st. Caterpillar's dividend payout ratio is currently 30.72%.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on CAT shares. Citigroup boosted their target price on Caterpillar from $460.00 to $500.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Melius upgraded Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 target price for the company in a research report on Wednesday, July 9th. JPMorgan Chase & Co. boosted their target price on Caterpillar from $475.00 to $520.00 and gave the stock an "overweight" rating in a research report on Wednesday, August 6th. Truist Financial boosted their target price on Caterpillar from $414.00 to $507.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Finally, UBS Group upgraded 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. Seven equities research analysts have rated the stock with a hold rating, ten have given a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat.com, Caterpillar has an average rating of "Moderate Buy" and a consensus target price of $444.00.

Insider Activity at Caterpillar

In related news, insider Jason Kaiser sold 2,161 shares of the company's stock in a transaction that occurred on Monday, August 11th. The stock was sold at an average price of $417.70, for a total transaction of $902,649.70. Following the completion of the transaction, the insider owned 8,632 shares in the company, valued at $3,605,586.40. This represents a 20.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.33% of the stock is currently owned by corporate insiders.

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.