Wealth Effects LLC Reduces Stock Holdings in Caterpillar Inc. (NYSE:CAT)

Wealth Effects LLC decreased its holdings in Caterpillar Inc. (NYSE:CAT) by 1.3% in the first quarter, HoldingsChannel.com reports. The fund owned 2,922 shares of the industrial products company’s stock after selling 39 shares during the period. Wealth Effects LLC’s holdings in Caterpillar were worth $964,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in CAT. Flagship Wealth Advisors LLC purchased a new position in Caterpillar during the fourth quarter valued at $26,000. Halbert Hargrove Global Advisors LLC purchased a new position in Caterpillar during the fourth quarter valued at $27,000. Cyrus J. Lawrence LLC purchased a new position in Caterpillar during the fourth quarter valued at $27,000. Noble Wealth Management PBC purchased a new position in Caterpillar during the fourth quarter valued at $31,000. Finally, Investment Management Corp VA ADV purchased a new position in Caterpillar during the fourth quarter valued at $33,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Insider Buying and Selling

In other news, Director David Maclennan purchased 375 shares of the company’s stock in a transaction that occurred on Wednesday, May 7th. The stock was bought at an average cost of $320.70 per share, with a total value of $120,262.50. Following the completion of the purchase, the director now owns 6,653 shares in the company, valued at approximately $2,133,617.10. This represents a 5.97% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. 0.33% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several equities analysts have commented on CAT shares. JPMorgan Chase & Co. lowered their price objective on Caterpillar from $490.00 to $380.00 and set an “overweight” rating for the company in a research report on Monday, April 14th. Robert W. Baird upped their price target on shares of Caterpillar from $395.00 to $422.00 and gave the stock an “outperform” rating in a research note on Friday, June 20th. Baird R W upgraded shares of Caterpillar from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, May 13th. Bank of America lifted their target price on shares of Caterpillar from $335.00 to $385.00 and gave the stock a “buy” rating in a report on Friday, May 30th. Finally, Citigroup lifted their target price on shares of Caterpillar from $370.00 to $420.00 and gave the stock a “buy” rating in a report on Tuesday. Six investment analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $380.83.

Caterpillar Stock Performance

Shares of CAT opened at $371.63 on Thursday. The company has a quick ratio of 0.77, a current ratio of 1.32 and a debt-to-equity ratio of 1.43. The business has a 50-day simple moving average of $338.55 and a two-hundred day simple moving average of $346.61. The stock has a market cap of $175.05 billion, a price-to-earnings ratio of 18.11, a PEG ratio of 2.48 and a beta of 1.37. Caterpillar Inc. has a 52 week low of $267.30 and a 52 week high of $418.50.

Caterpillar (NYSE:CAT) last released its earnings results on Wednesday, April 30th. The industrial products company reported $4.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.35 by ($0.10). Caterpillar had a return on equity of 53.77% and a net margin of 15.71%. The business had revenue of $14.25 billion for the quarter, compared to analysts’ expectations of $14.64 billion. During the same quarter in the prior year, the business posted $5.60 EPS. The business’s revenue for the quarter was down 9.8% compared to the same quarter last year. On average, analysts expect that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 20th. Investors of record on Monday, July 21st will be given a dividend of $1.51 per share. The ex-dividend date is Monday, July 21st. This represents a $6.04 annualized dividend and a dividend yield of 1.63%. This is a boost from Caterpillar’s previous quarterly dividend of $1.41. Caterpillar’s dividend payout ratio (DPR) is currently 27.49%.

Caterpillar 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.