Strategies Wealth Advisors LLC Purchases New Stake in Caterpillar Inc. $CAT

Key Points

• Strategies Wealth Advisors LLC has acquired a new stake in Caterpillar Inc. (CAT), purchasing 882 shares valued at approximately $291,000.
• Caterpillar's shares saw a 4.1% increase recently, with a market cap of $203.79 billion and a P/E ratio of 22.13.
• The company announced an increase in its quarterly dividend, raising it from $1.41 to $1.51 per share, representing a 1.4% dividend yield.

Strategies Wealth Advisors LLC purchased a new position in Caterpillar Inc. (NYSE:CAT - Free Report) during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 882 shares of the industrial products company's stock, valued at approximately $291,000.

A number of other institutional investors have also recently bought and sold shares of the company. Investment Management Corp VA ADV acquired a new stake in shares of Caterpillar during the 4th quarter valued at about $33,000. Curat Global LLC bought a new position in Caterpillar during the first quarter valued at approximately $33,000. Redmont Wealth Advisors LLC acquired a new stake in Caterpillar in the first quarter valued at approximately $33,000. Quarry LP bought a new stake in Caterpillar in the fourth quarter worth approximately $35,000. Finally, Mpwm Advisory Solutions LLC acquired a new position in shares of Caterpillar during the 4th quarter worth $36,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Caterpillar Stock Performance

CAT traded up $1.91 during trading on Wednesday, reaching $433.17. 1,966,443 shares of the company's stock were exchanged, compared to its average volume of 2,771,471. The company has a market capitalization of $202.93 billion, a P/E ratio of 22.03, a PEG ratio of 2.58 and a beta of 1.40. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 1.50. The business has a 50 day moving average price of $408.58 and a 200 day moving average price of $358.73. Caterpillar Inc. has a fifty-two week low of $267.30 and a fifty-two week high of $441.15.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data 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 business had revenue of $16.57 billion for the quarter, compared to the consensus estimate of $16.14 billion. Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.Caterpillar's revenue was down .7% on a year-over-year basis. During the same period in the previous year, the business posted $5.99 earnings per share. As a group, analysts predict that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The company also recently announced 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. This is an increase from Caterpillar's previous quarterly dividend of $1.41. 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%. Caterpillar's dividend payout ratio is 30.72%.

Insider Activity

In related news, insider Jason Kaiser sold 2,161 shares of the 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 sale, the insider directly owned 8,632 shares in the company, valued at $3,605,586.40. This represents a 20.02% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Susan C. Schwab sold 2,324 shares of Caterpillar stock in a transaction 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 of the company's stock, 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. Company insiders own 0.33% of the company's stock.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CAT. DA Davidson upped their price objective on shares of Caterpillar from $331.00 to $388.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. Bank of America increased their price objective on Caterpillar from $460.00 to $495.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. JPMorgan Chase & Co. boosted their target price on Caterpillar from $475.00 to $520.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Evercore ISI raised shares of Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 price target on the stock in a research report on Tuesday, August 19th. Finally, 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 note on Wednesday, July 9th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating and five have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Caterpillar currently has a consensus rating of "Moderate Buy" and a consensus target price of $450.87.

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.