Home Federal Bank of Tennessee Trims Stake in Caterpillar Inc. (NYSE:CAT)

Home Federal Bank of Tennessee trimmed its stake in Caterpillar Inc. (NYSE:CAT) by 5.5% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,709 shares of the industrial products company’s stock after selling 100 shares during the period. Home Federal Bank of Tennessee’s holdings in Caterpillar were worth $626,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Bank of Nova Scotia boosted its holdings in shares of Caterpillar by 12.5% during the 3rd quarter. Bank of Nova Scotia now owns 47,708 shares of the industrial products company’s stock valued at $13,024,000 after purchasing an additional 5,317 shares during the last quarter. Morningstar Investment Services LLC bought a new position in shares of Caterpillar in the 3rd quarter valued at about $366,000. Richard Bernstein Advisors LLC lifted its holdings in shares of Caterpillar by 13.3% in the 3rd quarter. Richard Bernstein Advisors LLC now owns 15,061 shares of the industrial products company’s stock valued at $4,112,000 after acquiring an additional 1,767 shares during the last quarter. Schonfeld Strategic Advisors LLC lifted its holdings in shares of Caterpillar by 203.5% in the 3rd quarter. Schonfeld Strategic Advisors LLC now owns 152,615 shares of the industrial products company’s stock valued at $41,664,000 after acquiring an additional 300,113 shares during the last quarter. Finally, Waverly Advisors LLC lifted its holdings in shares of Caterpillar by 9.3% in the 3rd quarter. Waverly Advisors LLC now owns 7,919 shares of the industrial products company’s stock valued at $2,162,000 after acquiring an additional 676 shares during the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Caterpillar Stock Up 1.7 %

Shares of NYSE CAT traded up $5.64 during midday trading on Friday, reaching $333.10. 8,891,479 shares of the company’s stock traded hands, compared to its average volume of 3,519,845. 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 stock’s 50 day simple moving average is $340.31 and its 200-day simple moving average is $329.04. Caterpillar Inc. has a one year low of $223.76 and a one year high of $382.01. The company has a market cap of $162.90 billion, a price-to-earnings ratio of 15.04, a P/E/G ratio of 1.71 and a beta of 1.14.

Caterpillar (NYSE:CAT) last released its quarterly earnings data on Thursday, April 25th. The industrial products company reported $5.60 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $15.80 billion for the quarter, compared to the consensus estimate of $16.07 billion. On average, analysts predict that Caterpillar Inc. will post 21.84 EPS for the current fiscal year.

Caterpillar announced that its board has approved a stock buyback program 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 stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is 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 represents a $5.64 annualized dividend and a yield of 1.69%. This is an increase from Caterpillar’s previous quarterly dividend of $1.30. The ex-dividend date of this dividend is Monday, July 22nd. Caterpillar’s dividend payout ratio (DPR) is 25.46%.

Insider Buying and Selling at Caterpillar

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

Analyst Ratings Changes

CAT has been the subject of a number of analyst reports. JPMorgan Chase & Co. increased their price target on shares of Caterpillar from $385.00 to $435.00 and gave the company an “overweight” rating in a report on Tuesday, April 16th. The Goldman Sachs Group increased their price objective on shares of Caterpillar from $357.00 to $408.00 and gave the stock a “buy” rating in a research report on Tuesday, April 16th. Truist Financial assumed coverage on shares of Caterpillar in a research report on Thursday, March 14th. They issued a “buy” rating and a $390.00 price objective on the stock. TD Cowen increased their price objective on shares of Caterpillar from $338.00 to $340.00 and gave the stock a “buy” rating in a research report on Friday, April 26th. Finally, Oppenheimer reaffirmed a “market perform” rating on shares of Caterpillar in a research report on Thursday, April 18th. One analyst has rated the stock with a sell rating, nine have given a hold rating and nine have assigned a buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $329.63.

Caterpillar Company 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.