Fiduciary Alliance LLC Makes New Investment in Caterpillar Inc. (NYSE:CAT)

Fiduciary Alliance LLC purchased a new stake in Caterpillar Inc. (NYSE:CAT) during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 939 shares of the industrial products company’s stock, valued at approximately $308,000.

A number of other institutional investors have also made changes to their positions in the stock. Stratos Wealth Partners LTD. grew its holdings in shares of Caterpillar by 9.2% during the fourth quarter. Stratos Wealth Partners LTD. now owns 15,010 shares of the industrial products company’s stock worth $4,438,000 after buying an additional 1,265 shares in the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its position in shares of Caterpillar by 2.0% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 136,245 shares of the industrial products company’s stock worth $40,289,000 after purchasing an additional 2,650 shares in the last quarter. SeaBridge Investment Advisors LLC acquired a new position in Caterpillar during the fourth quarter worth $269,000. Firethorn Wealth Partners LLC grew its position in Caterpillar by 19.4% in the fourth quarter. Firethorn Wealth Partners LLC now owns 1,825 shares of the industrial products company’s stock valued at $540,000 after purchasing an additional 296 shares in the last quarter. Finally, Edmp Inc. increased its stake in Caterpillar by 54.0% in the 4th quarter. Edmp Inc. now owns 1,792 shares of the industrial products company’s stock valued at $530,000 after buying an additional 628 shares during the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on CAT shares. Oppenheimer reaffirmed a “market perform” rating on shares of Caterpillar in a research report on Thursday, April 18th. Citigroup initiated coverage on Caterpillar in a report on Wednesday, June 26th. They issued a “buy” rating and a $380.00 price objective for the company. Truist Financial restated a “buy” rating and set a $399.00 target price (up from $390.00) on shares of Caterpillar in a report on Wednesday. StockNews.com cut shares of Caterpillar from a “buy” rating to a “hold” rating in a research note on Friday, August 2nd. Finally, JPMorgan Chase & Co. upped their target price on shares of Caterpillar from $385.00 to $435.00 and gave the company an “overweight” rating in a report on Tuesday, April 16th. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $337.38.

Insider Activity

In other news, insider Cheryl H. Johnson sold 1,508 shares of the business’s stock in a transaction that occurred on Tuesday, July 16th. The shares were sold at an average price of $350.00, for a total value of $527,800.00. Following the completion of the transaction, the insider now directly owns 18,515 shares in the company, valued at approximately $6,480,250. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. In related news, insider Lange Bob De sold 21,847 shares of the firm’s 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 sale, the insider now directly owns 71,115 shares of the company’s stock, valued at $25,380,943.50. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Cheryl H. Johnson sold 1,508 shares of the stock in a transaction dated Tuesday, July 16th. The stock was sold at an average price of $350.00, for a total transaction of $527,800.00. Following the completion of the transaction, the insider now directly owns 18,515 shares of the company’s stock, valued at approximately $6,480,250. The disclosure for this sale can be found here. In the last three months, insiders sold 24,863 shares of company stock worth $8,837,714. 0.33% of the stock is currently owned by company insiders.

Caterpillar Stock Performance

Shares of CAT traded down $0.64 during midday trading on Wednesday, reaching $325.80. 3,008,424 shares of the stock were exchanged, compared to its average volume of 2,760,452. 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 $333.67 and its 200 day simple moving average is $338.54. Caterpillar Inc. has a twelve month low of $223.76 and a twelve month high of $382.01. The company has a market cap of $159.33 billion, a P/E ratio of 14.86, a PEG ratio of 1.72 and a beta of 1.12.

Caterpillar (NYSE:CAT) last posted its quarterly earnings data on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.53 by $0.46. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. The firm had revenue of $16.69 billion during the quarter, compared to the consensus estimate of $16.91 billion. During the same quarter in the previous year, the firm posted $5.55 EPS. The business’s revenue for the quarter was down 3.6% compared to the same quarter last year. On average, sell-side analysts expect that Caterpillar Inc. will post 21.57 earnings per share for the current year.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 20th. Shareholders of record on Monday, July 22nd will be issued a $1.41 dividend. The ex-dividend date of this dividend is Monday, July 22nd. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 annualized dividend and a yield of 1.73%. Caterpillar’s payout ratio is currently 25.46%.

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

About Caterpillar

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.