Wealthcare Advisory Partners LLC Cuts Stock Holdings in Caterpillar Inc. $CAT

Key Points

• Wealthcare Advisory Partners cut its Caterpillar holdings by 26.5% in the second quarter, selling 4,187 shares and retaining 11,613 shares valued at approximately $12.4 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported a strong quarterly performance, with EPS of $8.17 beating estimates of $6.22 and revenue rising 23.7% year over year to $20.54 billion.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $995.52, while Caterpillar increased its quarterly dividend to $1.63 per share.

Wealthcare Advisory Partners LLC trimmed its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 26.5% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 11,613 shares of the industrial products company's stock after selling 4,187 shares during the period. Wealthcare Advisory Partners LLC's holdings in Caterpillar were worth $12,367,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other large investors have also added to or reduced their stakes in the company. Matrix Trust Co lifted its holdings in shares of Caterpillar by 93.8% during the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock worth $33,000 after purchasing an additional 15 shares during the period. Lam Group Inc. purchased a new stake in shares of Caterpillar in the 1st quarter valued at $26,000. Torren Management LLC purchased a new stake in shares of Caterpillar in the 4th quarter valued at $27,000. Frazier Financial Advisors LLC increased its stake in shares of Caterpillar by 220.0% in the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock worth $28,000 after acquiring an additional 33 shares during the period. Finally, Cedar Mountain Advisors LLC raised its holdings in shares of Caterpillar by 82.1% during the first quarter. Cedar Mountain Advisors LLC now owns 51 shares of the industrial products company's stock worth $36,000 after purchasing an additional 23 shares during the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Analysts Set New Price Targets

CAT has been the topic of several analyst reports. Royal Bank Of Canada raised their target price on Caterpillar from $877.00 to $897.00 and gave the stock a "sector perform" rating in a report on Wednesday, August 5th. Erste Group Bank lowered Caterpillar from a "buy" rating to a "hold" rating in a research report on Monday, July 27th. Evercore reaffirmed an "outperform" rating and set a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Wall Street Zen raised shares of Caterpillar from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Finally, Jefferies Financial Group boosted their target price on shares of Caterpillar from $900.00 to $1,045.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Thirteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $995.52.

Caterpillar Stock Performance

CAT opened at $836.29 on Tuesday. The company has a market cap of $384.42 billion, a price-to-earnings ratio of 35.98, a PEG ratio of 1.52 and a beta of 1.60. The firm's fifty day simple moving average is $920.45 and its two-hundred day simple moving average is $821.82. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. Caterpillar Inc. has a 52-week low of $405.46 and a 52-week high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. During the same quarter in the prior year, the firm earned $4.72 EPS. The company's revenue for the quarter was up 23.7% on a year-over-year basis. Equities analysts anticipate that Caterpillar Inc. will post 26.3 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be paid a $1.63 dividend. This is an increase from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, July 20th. Caterpillar's payout ratio is 28.06%.

Insider Transactions at Caterpillar

In related news, insider Denise C. Johnson sold 12,605 shares of the company's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the sale, the insider owned 49,825 shares of the company's stock, valued at approximately $45,236,615.75. This represents a 20.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO William E. Schaupp sold 360 shares of the 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 completion of 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 disclosure for this sale is available in the SEC filing. Insiders have sold 19,161 shares of company stock worth $17,407,424 over the last 90 days. 0.33% of the stock is currently owned by company insiders.

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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