Peterson Wealth Management Takes $544,000 Position in Caterpillar Inc. (NYSE:CAT)

Peterson Wealth Management acquired a new stake in Caterpillar Inc. (NYSE:CAT) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 1,634 shares of the industrial products company’s stock, valued at approximately $544,000.

A number of other institutional investors have also modified their holdings of the company. Partnership Wealth Management LLC acquired a new position in Caterpillar during the 4th quarter worth $26,000. Richardson Financial Services Inc. acquired a new position in shares of Caterpillar during the fourth quarter worth about $27,000. Thompson Investment Management Inc. purchased a new stake in shares of Caterpillar during the first quarter worth approximately $27,000. Bbjs Financial Advisors LLC acquired a new stake in Caterpillar in the second quarter valued at approximately $28,000. Finally, Financial Connections Group Inc. purchased a new position in Caterpillar in the second quarter worth approximately $28,000. 70.98% of the stock is owned by institutional investors and hedge funds.

Caterpillar Price Performance

Shares of NYSE:CAT opened at $333.50 on Friday. The stock has a market capitalization of $163.10 billion, a price-to-earnings ratio of 15.06, a PEG ratio of 1.66 and a beta of 1.12. Caterpillar Inc. has a one year low of $223.76 and a one year high of $382.01. The company has a 50-day simple moving average of $339.94 and a 200-day simple moving average of $343.18. The company has a debt-to-equity ratio of 1.39, a quick ratio of 0.78 and a current ratio of 1.28.

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

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 20th. Investors of record on Monday, July 22nd were issued a dividend of $1.41 per share. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 annualized dividend and a yield of 1.69%. The ex-dividend date was Monday, July 22nd. Caterpillar’s dividend payout ratio is currently 25.46%.

Caterpillar declared that its board has authorized a share buyback program on Wednesday, June 12th that authorizes the company to buyback $20.00 billion in outstanding shares. This buyback authorization authorizes the industrial products company to buy up to 12.7% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

CAT has been the subject of a number of analyst reports. StockNews.com downgraded shares of Caterpillar from a “buy” rating to a “hold” rating in a research note on Thursday. Evercore ISI lowered their target price on shares of Caterpillar from $338.00 to $321.00 and set an “in-line” rating for the company in a research note on Monday, August 19th. Truist Financial restated a “buy” rating and issued a $399.00 price objective (up previously from $390.00) on shares of Caterpillar in a research note on Wednesday, August 7th. Citigroup began coverage on shares of Caterpillar in a research note on Wednesday, June 26th. They issued a “buy” rating and a $380.00 price objective for the company. Finally, UBS Group upped their price objective on shares of Caterpillar from $270.00 to $285.00 and gave the company a “sell” rating in a research note on Wednesday, August 7th. Two investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and seven have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average target price of $336.31.

Insider Buying and Selling

In other news, Director Gerald Johnson purchased 100 shares of the business’s stock in a transaction that occurred on Wednesday, September 4th. The stock was purchased 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 directly owns 2,842 shares of the company’s stock, valued at approximately $962,272.78. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In other Caterpillar news, Director Gerald Johnson purchased 100 shares of the stock in a transaction dated Wednesday, September 4th. The shares were acquired at an average cost of $338.59 per share, for a total transaction of $33,859.00. Following the completion of the transaction, the director now directly owns 2,842 shares of the company’s stock, valued at $962,272.78. The purchase was disclosed in a filing with the SEC, which is available at this link. Also, insider Cheryl H. Johnson sold 1,508 shares of the stock in a transaction that occurred on Tuesday, July 16th. The shares were sold at an average price of $350.00, for a total transaction of $527,800.00. Following the completion of the sale, the insider now owns 18,515 shares in the company, valued at $6,480,250. The disclosure for this sale can be found here. Insiders sold 7,668 shares of company stock valued at $2,665,760 over the last ninety days. 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.