Sowell Financial Services LLC Lowers Holdings in Caterpillar Inc. $CAT

Key Points

• Sowell Financial Services LLC has reduced its stake in Caterpillar Inc. by 20.7%, holding 11,857 shares valued at $4.6 million.
• Despite a quarterly earnings miss, Caterpillar reported $16.57 billion in revenue, exceeding estimates, while earnings per share were $4.72 versus a consensus of $4.88.
• Several hedge funds have increased their positions in Caterpillar, with institutional investors holding 70.98% of the company's stock.

Sowell Financial Services LLC decreased its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 20.7% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 11,857 shares of the industrial products company's stock after selling 3,092 shares during the quarter. Sowell Financial Services LLC's holdings in Caterpillar were worth $4,603,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in Caterpillar by 6.7% during the first 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 last quarter. GAMMA Investing LLC increased its holdings in shares of Caterpillar by 43,447.3% in 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 period. Charles Schwab Investment Management Inc. boosted its position in shares of 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 worth $1,089,798,000 after purchasing an additional 15,347 shares in the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Caterpillar by 9.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,229,080 shares of the industrial products company's stock worth $1,064,951,000 after purchasing an additional 268,300 shares in the last quarter. Finally, Invesco Ltd. boosted its position in shares of Caterpillar by 5.0% in the 1st quarter. Invesco Ltd. now owns 3,141,936 shares of the industrial products company's stock worth $1,036,211,000 after purchasing an additional 150,533 shares in the last quarter. 70.98% of the stock is owned by institutional investors.

Caterpillar Stock Performance

Shares of CAT stock traded down $0.34 on Friday, hitting $466.62. The company's stock had a trading volume of 5,066,694 shares, compared to its average volume of 2,433,813. The company has a market capitalization of $218.60 billion, a PE ratio of 23.73, a PEG ratio of 2.84 and a beta of 1.41. 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 fifty-two week low of $267.30 and a fifty-two week high of $472.12. The stock's 50 day moving average is $425.21 and its 200-day moving average is $369.54.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16). The business 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 firm's quarterly revenue was down .7% compared to the same quarter last year. During the same quarter last year, the business earned $5.99 EPS. Equities research analysts expect that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Insider Activity

In other Caterpillar news, Chairman Donald J. Umpleby III sold 17,168 shares of the stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $412.87, for a total value of $7,088,152.16. Following the completion of the transaction, the chairman 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jason Kaiser sold 2,161 shares of the stock in a transaction 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 sale, the insider directly owned 8,632 shares in the company, valued at $3,605,586.40. This trade represents a 20.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 21,653 shares of company stock worth $8,943,642 over the last ninety days. Company insiders own 0.33% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on CAT. Jefferies Financial Group reiterated a "buy" rating and set a $500.00 price objective on shares of Caterpillar in a research note on Friday, August 29th. Robert W. Baird raised their price objective on Caterpillar from $495.00 to $540.00 and gave the stock an "outperform" rating in a report on Wednesday. Oppenheimer reduced their price target on shares of Caterpillar from $493.00 to $480.00 and set an "outperform" rating for the company in a research report on Friday, August 29th. Barclays boosted their price objective on shares of Caterpillar from $383.00 to $425.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 6th. Finally, Bank of America increased their price target on shares of Caterpillar from $460.00 to $495.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Two research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $460.20.

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.