Transcendent Capital Group LLC Takes Position in Caterpillar Inc. $CAT

Key Points

• Transcendent Capital Group LLC has acquired a new stake in Caterpillar Inc. (NYSE:CAT) consisting of 1,578 shares valued at approximately $613,000 during the second quarter.
• Analysts are optimistic about Caterpillar, with several raising their target prices, including Oppenheimer, which increased the price target from $480 to $513, and JPMorgan Chase, which raised it from $475 to $520.
• Caterpillar has declared a quarterly dividend of $1.51 per share, which will be paid on November 20th, reflecting an annualized dividend yield of 1.2%.

Transcendent Capital Group LLC acquired a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm acquired 1,578 shares of the industrial products company's stock, valued at approximately $613,000.

A number of other hedge funds and other institutional investors also recently modified their holdings of CAT. Compass Financial Services Inc grew its position in shares of 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 bought a new stake in shares of Caterpillar during the 2nd quarter worth about $32,000. Redmont Wealth Advisors LLC bought a new stake in shares of Caterpillar during the 1st quarter worth about $33,000. Total Wealth Planning & Management Inc. bought a new stake in shares of Caterpillar during the 2nd quarter worth about $38,000. Finally, Fiduciary Wealth Partners LLC bought a new stake in shares of Caterpillar during the 1st quarter worth about $45,000. Institutional investors own 70.98% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Caterpillar in a report on Saturday, September 27th. Oppenheimer lifted their target price on shares of Caterpillar from $480.00 to $513.00 and gave the stock an "outperform" rating in a report on Monday, September 29th. Melius Research raised shares of Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 target price for the company in a report on Wednesday, July 9th. JPMorgan Chase & Co. lifted their target price on shares of Caterpillar from $475.00 to $520.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Finally, Evercore ISI upgraded shares of Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 price objective for the company in a research note on Tuesday, August 19th. Two analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, Caterpillar has a consensus rating of "Moderate Buy" and an average target price of $478.20.

Insider Transactions at Caterpillar

In related news, Chairman Donald J. Umpleby III sold 17,166 shares of the company's stock in a transaction that occurred on Monday, September 22nd. The shares were sold at an average price of $462.65, for a total transaction of $7,941,849.90. Following the completion of the transaction, the chairman directly owned 465,339 shares in the company, valued at $215,289,088.35. This represents a 3.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, 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 transaction of $902,649.70. Following the transaction, the insider owned 8,632 shares of the company's stock, valued at approximately $3,605,586.40. This represents a 20.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 38,819 shares of company stock valued at $16,885,492. Company insiders own 0.33% of the company's stock.

Caterpillar Stock Performance

Shares of Caterpillar stock opened at $491.67 on Friday. The company has a 50 day moving average of $443.23 and a 200-day moving average of $384.17. Caterpillar Inc. has a 1-year low of $267.30 and a 1-year high of $511.50. The company has a current ratio of 1.34, a quick ratio of 0.81 and a debt-to-equity ratio of 1.50. The company has a market cap of $230.34 billion, a PE ratio of 25.01, a price-to-earnings-growth ratio of 2.99 and a beta of 1.46.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16). Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.The firm had revenue of $16.57 billion for the quarter, compared to the consensus estimate of $16.14 billion. During the same period last year, the company posted $5.99 EPS. The business's revenue was down .7% on a year-over-year basis. As a group, equities research analysts forecast that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Dividend Announcement

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

Caterpillar Company 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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