Advisory Alpha LLC Reduces Holdings in Caterpillar Inc. (NYSE:CAT)

Advisory Alpha LLC decreased its position in shares of Caterpillar Inc. (NYSE:CAT) by 10.3% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The fund owned 3,486 shares of the industrial products company’s stock after selling 399 shares during the quarter. Advisory Alpha LLC’s holdings in Caterpillar were worth $1,278,000 as of its most recent filing with the SEC.

Several other hedge funds also recently made changes to their positions in CAT. Thompson Investment Management Inc. acquired a new stake in shares of Caterpillar during the first quarter worth about $27,000. Fairman Group LLC acquired a new stake in shares of Caterpillar during the first quarter worth about $29,000. Partnership Wealth Management LLC acquired a new stake in shares of Caterpillar during the fourth quarter worth about $26,000. Richardson Financial Services Inc. acquired a new stake in shares of Caterpillar during the fourth quarter worth about $27,000. Finally, Vima LLC acquired a new stake in shares of Caterpillar during the fourth quarter worth about $30,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Insiders Place Their Bets

In other Caterpillar news, insider Cheryl H. Johnson sold 1,508 shares of Caterpillar stock in a transaction that occurred on Thursday, May 30th. The shares were sold at an average price of $340.00, for a total value of $512,720.00. Following the completion of the sale, the insider now directly owns 20,023 shares of the company’s stock, valued at approximately $6,807,820. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, Director David Maclennan acquired 500 shares of the stock in a transaction dated Friday, May 3rd. The stock was bought at an average cost of $337.39 per share, with a total value of $168,695.00. Following the purchase, the director now directly owns 5,738 shares of the company’s stock, valued at $1,935,943.82. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Cheryl H. Johnson sold 1,508 shares of the business’s stock in a transaction on Thursday, May 30th. The shares were sold at an average price of $340.00, for a total transaction of $512,720.00. Following the sale, the insider now directly owns 20,023 shares of the company’s stock, valued at $6,807,820. The disclosure for this sale can be found here. 0.33% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several brokerages have recently weighed in on CAT. Raymond James initiated coverage on shares of Caterpillar in a research note on Friday, June 28th. They set a “market perform” rating for the company. Citigroup initiated coverage on shares of Caterpillar in a research report on Wednesday, June 26th. They issued a “buy” rating and a $380.00 price objective for the company. Stifel Nicolaus downgraded shares of Caterpillar from a “buy” rating to a “hold” rating and raised their price objective for the company from $293.00 to $350.00 in a research report on Friday, April 26th. JPMorgan Chase & Co. raised their price objective on shares of Caterpillar from $385.00 to $435.00 and gave the company an “overweight” rating in a research report on Tuesday, April 16th. Finally, HSBC raised their price objective on shares of Caterpillar from $330.00 to $360.00 and gave the company a “hold” rating in a research report on Tuesday, April 30th. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating and eight have given a buy rating to the company’s stock. According to MarketBeat.com, Caterpillar presently has an average rating of “Hold” and an average target price of $329.63.

Caterpillar Price Performance

Shares of CAT traded up $4.25 during mid-day trading on Friday, reaching $335.38. 441,343 shares of the company’s stock were exchanged, compared to its average volume of 2,678,124. The company has a quick ratio of 0.83, a current ratio of 1.35 and a debt-to-equity ratio of 1.41. The company has a 50-day simple moving average of $337.19 and a two-hundred day simple moving average of $331.43. Caterpillar Inc. has a 52-week low of $223.76 and a 52-week high of $382.01. The company has a market cap of $164.02 billion, a price-to-earnings ratio of 15.12, a PEG ratio of 1.69 and a beta of 1.12.

Caterpillar (NYSE:CAT) last issued its quarterly earnings data on Thursday, April 25th. The industrial products company reported $5.60 earnings per share for the quarter, topping analysts’ consensus estimates of $5.12 by $0.48. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. The business had revenue of $15.80 billion during the quarter, compared to analysts’ expectations of $16.07 billion. On average, sell-side analysts predict that Caterpillar Inc. will post 21.73 EPS for the current fiscal year.

Caterpillar announced that its Board of Directors has initiated a stock buyback plan on Wednesday, June 12th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the industrial products company to purchase up to 12.7% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, August 20th. Shareholders of record on Monday, July 22nd will be paid a $1.41 dividend. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 annualized dividend and a yield of 1.68%. The ex-dividend date of this dividend is Monday, July 22nd. Caterpillar’s payout ratio is presently 23.48%.

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.