Vanguard Group Inc. Trims Position in Caterpillar Inc. (NYSE:CAT)

Key Points

• Vanguard Group Inc. has reduced its stake in Caterpillar Inc. by 1.3%, now owning approximately 46.2 million shares valued at $15.24 billion.
• Several institutional investors have been buying into Caterpillar, with the stock having about 70.98% ownership from hedge funds and other institutions.
• Caterpillar recently declared a quarterly dividend of $1.51, reflecting an increase from the previous $1.41 dividend, indicating a solid return for shareholders.

Vanguard Group Inc. cut its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 1.3% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 46,215,478 shares of the industrial products company's stock after selling 594,062 shares during the period. Vanguard Group Inc. owned 9.67% of Caterpillar worth $15,241,865,000 at the end of the most recent reporting period.

Several other hedge funds also recently added to or reduced their stakes in the business. Investment Management Corp VA ADV purchased a new stake in Caterpillar in the fourth quarter valued at approximately $33,000. Curat Global LLC acquired a new position in Caterpillar during the 1st quarter worth about $33,000. Redmont Wealth Advisors LLC purchased a new position in Caterpillar during the 1st quarter valued at about $33,000. Quarry LP purchased a new stake in Caterpillar during the fourth quarter worth about $35,000. Finally, Mpwm Advisory Solutions LLC acquired a new stake in shares of Caterpillar during the fourth quarter worth about $36,000. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

CAT has been the subject of a number of research reports. Truist Financial upped their target price on shares of Caterpillar from $414.00 to $507.00 and gave the stock a "buy" rating in a research note on Wednesday. Evercore ISI cut their price objective on Caterpillar from $375.00 to $373.00 and set an "in-line" rating on the stock in a research report on Monday, May 19th. Barclays lifted their target price on Caterpillar from $383.00 to $425.00 and gave the company an "equal weight" rating in a report on Wednesday. Baird R W upgraded Caterpillar from a "hold" rating to a "strong-buy" rating in a report on Tuesday, May 13th. Finally, Melius Research raised Caterpillar from a "hold" rating to a "strong-buy" rating and set a $500.00 price target on the stock in a research report on Wednesday, July 9th. Seven research analysts have rated the stock with a hold rating, ten have issued a buy rating and two have assigned a strong buy rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $444.00.

Caterpillar Stock Down 2.5%

Shares of NYSE:CAT traded down $10.65 during trading on Thursday, hitting $417.07. 4,260,195 shares of the company were exchanged, compared to its average volume of 2,880,540. The company has a debt-to-equity ratio of 1.50, a current ratio of 1.34 and a quick ratio of 0.77. The firm's 50 day moving average price is $391.99 and its 200-day moving average price is $355.63. The stock has a market capitalization of $196.46 billion, a P/E ratio of 21.21, a PEG ratio of 2.69 and a beta of 1.40. Caterpillar Inc. has a 12-month low of $267.30 and a 12-month high of $441.15.

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 the consensus estimate 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 analysts' expectations of $16.14 billion. During the same period in the previous year, the business posted $5.99 EPS. The business's revenue for the quarter was down .7% compared to the same quarter last year. On average, research analysts predict that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 20th. Stockholders of record on Monday, July 21st will be issued a $1.51 dividend. The ex-dividend date of this dividend is Monday, July 21st. This is an increase from Caterpillar's previous quarterly dividend of $1.41. This represents a $6.04 annualized dividend and a dividend yield of 1.4%. Caterpillar's dividend payout ratio is currently 29.43%.

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.