Davidson Trust Co. Trims Stock Position in Caterpillar Inc. $CAT

Davidson Trust Co. lessened its stake in shares of Caterpillar Inc. (NYSE:CAT) by 7.5% in the 2nd quarter, Holdings Channel reports. The institutional investor owned 1,262 shares of the industrial products company’s stock after selling 102 shares during the quarter. Davidson Trust Co.’s holdings in Caterpillar were worth $490,000 as of its most recent SEC filing.

Other institutional investors have also modified their holdings of the company. Family Legacy Financial Solutions LLC acquired a new position in shares of Caterpillar in the 2nd quarter valued at $32,000. Compass Financial Services Inc increased its holdings 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. Redmont Wealth Advisors LLC acquired a new position in shares of Caterpillar in the 1st quarter valued at $33,000. Maseco LLP acquired a new position in shares of Caterpillar in the 2nd quarter valued at $45,000. Finally, Richardson Financial Services Inc. increased its holdings in shares of Caterpillar by 109.1% in the 2nd quarter. Richardson Financial Services Inc. now owns 115 shares of the industrial products company’s stock valued at $45,000 after acquiring an additional 60 shares during the period. 70.98% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

In related news, insider Jason Kaiser sold 2,161 shares of the business’s stock in a transaction dated Monday, August 11th. The shares were sold at an average price of $417.70, for a total value of $902,649.70. Following the sale, the insider directly owned 8,632 shares in the company, valued at $3,605,586.40. The trade was a 20.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Donald J. Umpleby III sold 17,166 shares of the business’s stock in a transaction dated Friday, October 10th. The stock was sold at an average price of $505.29, for a total transaction of $8,673,808.14. Following the completion of the sale, the chairman owned 448,173 shares in the company, valued at $226,457,335.17. This represents a 3.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 55,985 shares of company stock worth $25,559,300. Corporate insiders own 0.33% of the company’s stock.

Caterpillar Price Performance

Shares of NYSE CAT opened at $528.75 on Wednesday. The firm has a market capitalization of $247.71 billion, a P/E ratio of 26.89, a PEG ratio of 3.09 and a beta of 1.46. Caterpillar Inc. has a one year low of $267.30 and a one year high of $531.56. The company’s fifty day moving average is $446.55 and its two-hundred day moving average is $386.71. The company has a debt-to-equity ratio of 1.50, a quick ratio of 0.81 and a current ratio of 1.34.

Caterpillar (NYSE:CAT) last issued its earnings results on Tuesday, August 5th. The industrial products company reported $4.72 EPS for the quarter, missing the consensus estimate of $4.88 by ($0.16). The company had revenue of $16.57 billion for 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%.Caterpillar’s revenue for the quarter was down .7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $5.99 earnings per share. Analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current fiscal year.

Caterpillar Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 20th. Shareholders of record on Monday, October 20th will be given a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Monday, October 20th. Caterpillar’s payout ratio is presently 30.72%.

Analysts Set New Price Targets

A number of brokerages have recently commented on CAT. Barclays lifted their target price on shares of Caterpillar from $383.00 to $425.00 and gave the company an “equal weight” rating in a report on Wednesday, August 6th. Jefferies Financial Group boosted their price objective on shares of Caterpillar from $500.00 to $570.00 and gave the company a “buy” rating in a research note on Wednesday, October 8th. Evercore ISI raised shares of Caterpillar from an “in-line” rating to an “outperform” rating and set a $476.00 price objective on the stock in a research note on Tuesday, August 19th. Truist Financial boosted their price objective on shares of Caterpillar from $507.00 to $582.00 and gave the company a “buy” rating in a research note on Wednesday, October 8th. Finally, Sanford C. Bernstein boosted their price objective on shares of Caterpillar from $447.00 to $502.00 and gave the company a “market perform” rating in a research note on Tuesday. Two research 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. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $501.47.

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.