Zimmer Partners LP Acquires 37,830 Shares of Caterpillar Inc. $CAT

Key Points

• Zimmer Partners LP significantly increased its holdings in Caterpillar Inc. by 125.6%, owning 67,950 shares worth approximately $22.41 million as of the latest quarterly filing.
• Caterpillar's recent quarterly earnings report showed an EPS of $4.72, falling short of expectations, although revenue increased to $16.57 billion, surpassing analyst estimates.
• The company recently declared an increased quarterly dividend of $1.51, reflecting a 1.4% yield and a payout ratio of 30.72%.

Zimmer Partners LP grew its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 125.6% in the 1st quarter, according to its most recent disclosure with the SEC. The fund owned 67,950 shares of the industrial products company's stock after buying an additional 37,830 shares during the period. Zimmer Partners LP's holdings in Caterpillar were worth $22,410,000 as of its most recent SEC filing.

Several other institutional investors also recently modified their holdings of the business. Empowered Funds LLC boosted its position in shares of Caterpillar by 97.0% during the first quarter. Empowered Funds LLC now owns 57,497 shares of the industrial products company's stock valued at $18,963,000 after buying an additional 28,308 shares during the last quarter. MBB Public Markets I LLC purchased a new stake in shares of Caterpillar during the first quarter valued at $309,000. Ascent Group LLC raised its holdings in shares of Caterpillar by 172.5% during the first quarter. Ascent Group LLC now owns 4,467 shares of the industrial products company's stock valued at $1,473,000 after purchasing an additional 2,828 shares during the last quarter. RNC Capital Management LLC raised its holdings in shares of Caterpillar by 83.5% during the first quarter. RNC Capital Management LLC now owns 4,280 shares of the industrial products company's stock valued at $1,412,000 after purchasing an additional 1,948 shares during the last quarter. Finally, Arete Wealth Advisors LLC raised its holdings in shares of Caterpillar by 26.8% during the first quarter. Arete Wealth Advisors LLC now owns 9,063 shares of the industrial products company's stock valued at $2,989,000 after purchasing an additional 1,916 shares during the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Price Performance

Shares of NYSE CAT traded down $0.28 during midday trading on Friday, reaching $431.10. The stock had a trading volume of 2,341,271 shares, compared to its average volume of 2,731,468. The stock has a 50-day moving average of $420.04 and a 200-day moving average of $365.16. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.81 and a current ratio of 1.34. The company has a market capitalization of $201.96 billion, a price-to-earnings ratio of 21.93, a price-to-earnings-growth ratio of 2.57 and a beta of 1.41. 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 announced its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $4.72 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $4.88 by ($0.16). The firm had revenue of $16.57 billion during the quarter, compared to analysts' expectations of $16.14 billion. Caterpillar had a return on equity of 48.95% and a net margin of 14.95%.The business's revenue for the quarter was down .7% on a year-over-year basis. During the same period last year, the company earned $5.99 earnings per share. As a group, research analysts anticipate that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Jason Kaiser sold 2,161 shares of the company's stock in a transaction on Monday, August 11th. The shares were sold at an average price of $417.70, for a total transaction of $902,649.70. Following the completion of the transaction, the insider owned 8,632 shares in the company, valued at approximately $3,605,586.40. This represents a 20.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Susan C. Schwab sold 2,324 shares of the company's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $410.00, for a total transaction of $952,840.00. Following the transaction, 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 position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 21,653 shares of company stock worth $8,943,642. 0.33% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. JPMorgan Chase & Co. boosted their price objective on shares of Caterpillar from $475.00 to $520.00 and gave the company an "overweight" rating in a report on Wednesday, August 6th. DA Davidson boosted their price objective on shares of Caterpillar from $331.00 to $388.00 and gave the company a "neutral" rating in a report on Tuesday, July 22nd. Robert W. Baird decreased their price objective on shares of Caterpillar from $500.00 to $495.00 and set an "outperform" rating for the company in a report on Friday, August 29th. Sanford C. Bernstein reissued a "market perform" rating on shares of Caterpillar in a report on Monday, July 14th. Finally, Evercore ISI raised shares of Caterpillar from an "in-line" rating to an "outperform" rating and set a $476.00 price objective for the company in a report on Tuesday, August 19th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, Caterpillar presently has an average rating of "Moderate Buy" and a consensus target price of $457.20.

About Caterpillar

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.