Red Door Wealth Management LLC Decreases Stake in Caterpillar Inc. (NYSE:CAT)

Red Door Wealth Management LLC reduced its stake in Caterpillar Inc. (NYSE:CAT) by 1.8% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,751 shares of the industrial products company’s stock after selling 33 shares during the period. Red Door Wealth Management LLC’s holdings in Caterpillar were worth $642,000 at the end of the most recent reporting period.

Other large investors have also bought and sold shares of the company. Cornerstone Wealth Group LLC increased its stake in shares of Caterpillar by 290.6% during the first quarter. Cornerstone Wealth Group LLC now owns 4,484 shares of the industrial products company’s stock valued at $1,643,000 after buying an additional 3,336 shares during the period. Physician Wealth Advisors Inc. purchased a new position in shares of Caterpillar during the first quarter valued at approximately $245,000. Merrion Investment Management Co LLC purchased a new position in shares of Caterpillar during the first quarter valued at approximately $366,000. New Mexico Educational Retirement Board increased its stake in shares of Caterpillar by 17.5% during the first quarter. New Mexico Educational Retirement Board now owns 31,502 shares of the industrial products company’s stock valued at $11,543,000 after buying an additional 4,700 shares during the period. Finally, Founders Financial Securities LLC increased its stake in shares of Caterpillar by 2.7% during the first quarter. Founders Financial Securities LLC now owns 3,669 shares of the industrial products company’s stock valued at $1,345,000 after buying an additional 98 shares during the period. 70.98% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Caterpillar news, Director David Maclennan purchased 500 shares of the stock in a transaction dated Friday, May 3rd. The shares were purchased at an average cost of $337.39 per share, with a total value of $168,695.00. Following the completion of the acquisition, the director now directly owns 5,738 shares in the company, valued at approximately $1,935,943.82. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. In other Caterpillar news, insider Lange Bob De sold 21,847 shares of the stock in a transaction dated Monday, May 13th. The stock was sold at an average price of $356.90, for a total value of $7,797,194.30. Following the transaction, the insider now owns 71,115 shares of the company’s stock, valued at $25,380,943.50. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director David Maclennan bought 500 shares of the stock in a transaction on Friday, May 3rd. The stock was purchased at an average cost of $337.39 per share, for a total transaction of $168,695.00. Following the acquisition, the director now 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. Corporate insiders own 0.33% of the company’s stock.

Caterpillar Stock Performance

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 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. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.83 and a current ratio of 1.35. Caterpillar Inc. has a one year low of $223.76 and a one year high of $382.01. The stock has a 50 day moving average of $340.31 and a 200 day moving average of $329.04.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results 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. The firm had revenue of $15.80 billion for the quarter, compared to the consensus estimate of $16.07 billion. Caterpillar had a return on equity of 58.61% and a net margin of 16.79%. As a group, equities research analysts anticipate that Caterpillar Inc. will post 21.84 EPS for the current fiscal year.

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 reacquire up to 12.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Caterpillar Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd will be issued a dividend of $1.41 per share. This is an increase from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 dividend on an annualized basis and a dividend yield of 1.69%. The ex-dividend date is Monday, July 22nd. Caterpillar’s dividend payout ratio is presently 25.46%.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Citigroup assumed coverage on Caterpillar in a research note on Wednesday. They set a “buy” rating and a $380.00 target price on the stock. JPMorgan Chase & Co. upped their price target on Caterpillar from $385.00 to $435.00 and gave the stock an “overweight” rating in a research note on Tuesday, April 16th. Oppenheimer reaffirmed a “market perform” rating on shares of Caterpillar in a research note on Thursday, April 18th. The Goldman Sachs Group upped their price target on Caterpillar from $357.00 to $408.00 and gave the stock a “buy” rating in a research note on Tuesday, April 16th. Finally, Raymond James began coverage on Caterpillar in a research note on Friday. They issued a “market perform” rating on the stock. One research analyst has rated the stock with a sell rating, nine have assigned a hold rating and nine have given a buy rating to the stock. According to data from MarketBeat, Caterpillar has an average rating of “Hold” and a consensus target price 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.