Sumitomo Mitsui Trust Group Inc. Boosts Stake in Caterpillar Inc. $CAT

Key Points

• Sumitomo Mitsui Trust Group Inc. increased its stake in Caterpillar Inc. by 5.8%, owning 1,499,272 shares valued at $582 million at the end of the second quarter.
• Caterpillar's quarterly earnings revealed an EPS of $4.72, which fell short of analysts' expectations of $4.88, while revenue of $16.57 billion exceeded estimates.
• The company declared a quarterly dividend of $1.51, with an annualized yield of 1.2%, set to be paid on November 20th.

Sumitomo Mitsui Trust Group Inc. increased its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 5.8% in the 2nd quarter, according to its most recent filing with the SEC. The fund owned 1,499,272 shares of the industrial products company's stock after purchasing an additional 82,808 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 0.32% of Caterpillar worth $582,032,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also made changes to their positions in the company. Mid American Wealth Advisory Group Inc. acquired a new position in Caterpillar in the 2nd quarter valued at about $28,000. Compass Financial Services Inc increased its position in Caterpillar by 49.2% in the 1st quarter. Compass Financial Services Inc now owns 94 shares of the industrial products company's stock valued at $31,000 after acquiring an additional 31 shares during the period. Family Legacy Financial Solutions LLC acquired a new position in Caterpillar in the 2nd quarter valued at about $32,000. Redmont Wealth Advisors LLC acquired a new position in Caterpillar in the 1st quarter valued at about $33,000. Finally, Harbor Asset Planning Inc. acquired a new position in Caterpillar in the 2nd quarter valued at about $34,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Trading Up 0.7%

Shares of Caterpillar stock opened at $524.04 on Friday. Caterpillar Inc. has a fifty-two week low of $267.30 and a fifty-two week high of $544.99. The firm has a market cap of $245.50 billion, a PE ratio of 26.66, a P/E/G ratio of 2.93 and a beta of 1.46. The business's fifty day moving average is $462.16 and its two-hundred day moving average is $396.63. The company has a quick ratio of 0.81, a current ratio of 1.34 and a debt-to-equity ratio of 1.50.

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 firm had revenue of $16.57 billion for the quarter, compared to analyst estimates of $16.14 billion. Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.The company's quarterly revenue was down .7% on a year-over-year basis. During the same quarter in the previous year, the company earned $5.99 earnings per share. Analysts anticipate that Caterpillar Inc. will post 19.86 earnings per share for the current year.

Caterpillar Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Thursday, November 20th. Investors of record on Monday, October 20th will be issued a $1.51 dividend. This represents a $6.04 annualized dividend and a yield of 1.2%. The ex-dividend date is Monday, October 20th. Caterpillar's dividend payout ratio is currently 30.72%.

Insider Activity at Caterpillar

In related news, Chairman Donald J. Umpleby III sold 17,166 shares of the stock in a transaction on Friday, October 10th. The stock was sold at an average price of $505.29, for a total value of $8,673,808.14. Following the completion of the sale, the chairman directly owned 448,173 shares in the company, valued at approximately $226,457,335.17. This represents a 3.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Susan C. Schwab sold 2,324 shares of the 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 sale, the director owned 6,917 shares of the company's stock, valued at approximately $2,835,970. This represents a 25.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 55,985 shares of company stock worth $25,559,300. Corporate insiders own 0.33% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Evercore ISI upgraded Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 target price on the stock in a research report on Tuesday, August 19th. Citigroup upped their price target on Caterpillar from $540.00 to $570.00 and gave the stock a "buy" rating in a report on Tuesday, October 7th. DA Davidson upped their price target on Caterpillar from $331.00 to $388.00 and gave the stock a "neutral" rating in a report on Tuesday, July 22nd. JPMorgan Chase & Co. upped their target price on Caterpillar from $505.00 to $650.00 and gave the company an "overweight" rating in a research note on Tuesday, October 14th. Finally, Royal Bank Of Canada started coverage on Caterpillar in a research note on Wednesday. They issued a "sector perform" rating and a $560.00 target price on the stock. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $518.19.

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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