Caterpillar Inc. (NYSE:CAT) Shares Sold by Varma Mutual Pension Insurance Co

Varma Mutual Pension Insurance Co lowered its stake in shares of Caterpillar Inc. (NYSE:CAT) by 12.0% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 87,856 shares of the industrial products company’s stock after selling 11,940 shares during the period. Varma Mutual Pension Insurance Co’s holdings in Caterpillar were worth $29,265,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds have also recently modified their holdings of the company. Partnership Wealth Management LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth approximately $26,000. Richardson Financial Services Inc. purchased a new stake in shares of Caterpillar during the fourth quarter worth $27,000. Thompson Investment Management Inc. acquired a new stake in shares of Caterpillar in the first quarter valued at about $27,000. Bbjs Financial Advisors LLC purchased a new position in shares of Caterpillar in the second quarter worth about $28,000. Finally, Financial Connections Group Inc. purchased a new stake in Caterpillar during the 2nd quarter valued at about $28,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Caterpillar Stock Down 1.3 %

NYSE CAT traded down $4.20 on Friday, hitting $329.36. 2,676,623 shares of the stock were exchanged, compared to its average volume of 2,680,938. Caterpillar Inc. has a fifty-two week low of $223.76 and a fifty-two week high of $382.01. The company has a quick ratio of 0.78, a current ratio of 1.28 and a debt-to-equity ratio of 1.39. The company has a market cap of $161.07 billion, a PE ratio of 14.87, a PEG ratio of 1.66 and a beta of 1.10. The company has a 50-day moving average price of $339.86 and a 200-day moving average price of $343.44.

Caterpillar (NYSE:CAT) last posted its earnings results on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share for the quarter, topping the consensus estimate of $5.53 by $0.46. Caterpillar had a return on equity of 59.88% and a net margin of 16.58%. The firm had revenue of $16.69 billion during the quarter, compared to analysts’ expectations of $16.91 billion. During the same quarter in the previous year, the business earned $5.55 earnings per share. The firm’s revenue was down 3.6% compared to the same quarter last year. Sell-side analysts anticipate that Caterpillar Inc. will post 21.87 EPS for the current fiscal year.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 20th. Shareholders of record on Monday, July 22nd were paid a $1.41 dividend. This represents a $5.64 annualized dividend and a yield of 1.71%. The ex-dividend date was Monday, July 22nd. This is an increase from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s dividend payout ratio is currently 25.46%.

Caterpillar declared that its board has authorized a share repurchase plan on Wednesday, June 12th that permits the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization permits the industrial products company to repurchase up to 12.7% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on CAT shares. Raymond James started coverage on Caterpillar in a report on Friday, June 28th. They set a “market perform” rating on the stock. Citigroup began coverage on Caterpillar in a research note on Wednesday, June 26th. They issued a “buy” rating and a $380.00 target price for the company. UBS Group boosted their price target on shares of Caterpillar from $270.00 to $285.00 and gave the company a “sell” rating in a research report on Wednesday, August 7th. Bank of America cut their price objective on shares of Caterpillar from $385.00 to $376.00 and set a “buy” rating for the company in a research report on Wednesday, August 7th. Finally, StockNews.com cut shares of Caterpillar from a “buy” rating to a “hold” rating in a research note on Thursday. Two investment analysts have rated the stock with a sell rating, ten have given a hold rating and seven have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $336.31.

Insider Transactions at Caterpillar

In other news, Director Gerald Johnson acquired 100 shares of the firm’s stock in a transaction dated Wednesday, September 4th. The stock was acquired at an average cost of $338.59 per share, with a total value of $33,859.00. Following the completion of the acquisition, the director now owns 2,842 shares of the company’s stock, valued at $962,272.78. The acquisition was disclosed in a legal filing with the SEC, which is available through this link. In other Caterpillar news, insider Anthony D. Fassino sold 3,185 shares of the company’s stock in a transaction that occurred on Friday, August 30th. The stock was sold at an average price of $351.36, for a total transaction of $1,119,081.60. Following the completion of the sale, the insider now directly owns 33,442 shares of the company’s stock, valued at approximately $11,750,181.12. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Gerald Johnson bought 100 shares of the stock in a transaction on Wednesday, September 4th. The stock was bought at an average price of $338.59 per share, for a total transaction of $33,859.00. Following the completion of the purchase, the director now directly owns 2,842 shares in the company, valued at approximately $962,272.78. The disclosure for this purchase can be found here. Over the last 90 days, insiders have sold 7,668 shares of company stock worth $2,665,760. Corporate insiders own 0.33% of the company’s stock.

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.