Temasek Holdings Private Ltd Invests $15.67 Million in Caterpillar Inc. $CAT

Key Points

• Temasek Holdings opened a new position in Caterpillar during the fourth quarter, buying 27,360 shares worth about $15.67 million.
• Caterpillar reported a strong quarter, with EPS of $5.54 and revenue of $17.42 billion, both ahead of analyst estimates, while revenue rose 22.2% year over year.
• The company raised its quarterly dividend to $1.63 per share from $1.51, and Wall Street sentiment remains positive with an average rating of Moderate Buy and an average target price of $933.27.

Temasek Holdings Private Ltd purchased a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 27,360 shares of the industrial products company's stock, valued at approximately $15,674,000.

Several other hedge funds and other institutional investors have also bought and sold shares of the company. Rakuten Investment Management Inc. lifted its holdings in Caterpillar by 408.6% in the fourth quarter. Rakuten Investment Management Inc. now owns 61,583 shares of the industrial products company's stock valued at $35,633,000 after buying an additional 49,474 shares during the period. L2 Asset Management LLC lifted its holdings in Caterpillar by 12.9% in the fourth quarter. L2 Asset Management LLC now owns 3,624 shares of the industrial products company's stock valued at $2,076,000 after buying an additional 415 shares during the period. Bluedoor Private Wealth LLC acquired a new position in Caterpillar in the fourth quarter valued at $1,280,000. Cynosure Group LLC lifted its holdings in Caterpillar by 8,359.6% in the fourth quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company's stock valued at $294,314,000 after buying an additional 507,681 shares during the period. Finally, 71 West Capital Partners acquired a new position in Caterpillar in the fourth quarter valued at $1,375,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Insider Activity

In other news, CAO William E. Schaupp sold 360 shares of Caterpillar stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $906.00, for a total transaction of $326,160.00. Following the sale, the chief accounting officer owned 530 shares of the company's stock, valued at approximately $480,180. The trade was a 40.45% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Anthony D. Fassino sold 16,283 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the sale, the insider directly owned 46,041 shares in the company, valued at $42,210,388.80. The trade was a 26.13% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 95,773 shares of company stock worth $87,642,635. 0.33% of the stock is owned by company insiders.

Caterpillar Price Performance

Shares of NYSE:CAT opened at $933.46 on Tuesday. The company's fifty day moving average is $856.17 and its 200 day moving average is $730.40. Caterpillar Inc. has a 52 week low of $356.96 and a 52 week high of $946.83. The stock has a market cap of $429.94 billion, a PE ratio of 46.46, a PEG ratio of 1.80 and a beta of 1.59. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64.

Caterpillar (NYSE:CAT - Get Free Report) last announced its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share for the quarter, beating analysts' consensus estimates of $4.65 by $0.89. The firm had revenue of $17.42 billion for the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The company's revenue for the quarter was up 22.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $4.25 EPS. Research analysts anticipate that Caterpillar Inc. will post 24.62 earnings per share for the current year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be paid a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's payout ratio is presently 30.06%.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on the stock. Wall Street Zen upgraded shares of Caterpillar from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Evercore restated an "outperform" rating and issued a $1,103.00 target price on shares of Caterpillar in a report on Monday, May 11th. Oppenheimer set a $980.00 price objective on shares of Caterpillar and gave the stock an "outperform" rating in a research report on Friday, May 1st. Wolfe Research boosted their price objective on Caterpillar from $670.00 to $750.00 and gave the company an "outperform" rating in a research note on Tuesday, March 31st. Finally, JPMorgan Chase & Co. raised their price objective on shares of Caterpillar from $860.00 to $1,125.00 and gave the stock an "overweight" rating in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $933.27.

Caterpillar Profile

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company's product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.

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