SCS Capital Management LLC Invests $1.80 Million in Caterpillar Inc. $CAT

Key Points

• SCS Capital Management LLC has made a new investment of approximately $1.80 million in Caterpillar Inc. by purchasing 5,445 shares, according to a recent SEC filing.
• Caterpillar reported earnings per share (EPS) of $4.72 for the latest quarter, falling short of the consensus estimate of $4.88, while revenue was above expectations at $16.57 billion.
• Insider sales have increased, with insiders selling a total of 21,653 shares valued at nearly $9 million in the last three months, indicating a decrease in insider ownership.

SCS Capital Management LLC purchased a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 5,445 shares of the industrial products company's stock, valued at approximately $1,796,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Caterpillar by 6.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,204,445 shares of the industrial products company's stock valued at $1,386,626,000 after buying an additional 264,054 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of Caterpillar by 8.6% in 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 purchasing an additional 312,878 shares in the last quarter. GAMMA Investing LLC raised 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 in the last quarter. Charles Schwab Investment Management Inc. raised 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 in the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in Caterpillar by 9.1% in 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 buying an additional 268,300 shares during the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Caterpillar Trading Up 1.0%

Shares of CAT stock traded up $4.11 during mid-day trading on Monday, hitting $435.63. The company's stock had a trading volume of 897,746 shares, compared to its average volume of 2,720,683. Caterpillar Inc. has a 52 week low of $267.30 and a 52 week high of $441.15. The company has a market cap of $204.08 billion, a PE ratio of 22.15, a P/E/G ratio of 2.62 and a beta of 1.41. The company's fifty day simple moving average is $420.04 and its 200-day simple moving average is $365.49. 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 (NYSE:CAT - Get Free Report) last issued its earnings results on Tuesday, August 5th. The industrial products company reported $4.72 EPS for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16). The firm had revenue of $16.57 billion during the quarter, compared to the consensus estimate of $16.14 billion. Caterpillar had a net margin of 14.95% and a return on equity of 48.95%. The business's quarterly revenue was down .7% on a year-over-year basis. During the same period in the previous year, the firm earned $5.99 earnings per share. As a group, equities research analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

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 value of $902,649.70. Following the transaction, the insider owned 8,632 shares in the company, valued at approximately $3,605,586.40. This represents a 20.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Susan C. Schwab sold 2,324 shares of the company's stock in a transaction that occurred on Friday, August 15th. The shares were sold at an average price of $410.00, for a total value of $952,840.00. Following the completion of the transaction, the director owned 6,917 shares in the company, valued at approximately $2,835,970. The trade was a 25.15% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 21,653 shares of company stock valued at $8,943,642. 0.33% of the stock is owned by insiders.

Analysts Set New Price Targets

CAT has been the subject of several recent analyst reports. Jefferies Financial Group reissued a "buy" rating and issued a $500.00 price target on shares of Caterpillar in a research note on Friday, August 29th. Barclays raised their price target on Caterpillar from $383.00 to $425.00 and gave the stock an "equal weight" rating in a research note on Wednesday, August 6th. Melius raised Caterpillar from a "hold" rating to a "buy" rating and set a $500.00 target price on the stock in a report on Wednesday, July 9th. Sanford C. Bernstein reaffirmed a "market perform" rating on shares of Caterpillar in a report on Monday, July 14th. Finally, Bank of America lifted their price objective on Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $457.20.

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.