Great Lakes Advisors LLC Cuts Holdings in Caterpillar Inc. (NYSE:CAT)

Great Lakes Advisors LLC reduced its holdings in shares of Caterpillar Inc. (NYSE:CAT) by 6.6% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 299,298 shares of the industrial products company’s stock after selling 21,173 shares during the quarter. Caterpillar makes up 0.9% of Great Lakes Advisors LLC’s investment portfolio, making the stock its 29th biggest holding. Great Lakes Advisors LLC owned about 0.06% of Caterpillar worth $99,696,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in CAT. Thompson Investment Management Inc. acquired a new stake in Caterpillar during the first quarter worth approximately $27,000. Fairman Group LLC purchased a new stake in shares of Caterpillar in the 1st quarter valued at about $29,000. Bbjs Financial Advisors LLC acquired a new stake in shares of Caterpillar in the 2nd quarter valued at about $28,000. Financial Connections Group Inc. purchased a new position in Caterpillar during the 2nd quarter worth approximately $28,000. Finally, Partnership Wealth Management LLC acquired a new stake in shares of Caterpillar in the fourth quarter valued at approximately $26,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Caterpillar Price Performance

Shares of NYSE:CAT traded down $4.20 during midday trading on Friday, hitting $329.36. 2,676,623 shares of the stock were exchanged, compared to its average volume of 2,680,938. The stock has a market cap of $161.07 billion, a P/E ratio of 14.87, a PEG ratio of 1.66 and a beta of 1.12. The company has a current ratio of 1.28, a quick ratio of 0.78 and a debt-to-equity ratio of 1.39. Caterpillar Inc. has a twelve month low of $223.76 and a twelve month high of $382.01. The company has a 50 day moving average price of $339.86 and a 200-day moving average price of $343.24.

Caterpillar (NYSE:CAT) last announced its earnings results on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share for the quarter, beating the consensus estimate of $5.53 by $0.46. Caterpillar had a net margin of 16.58% and a return on equity of 59.88%. 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 company posted $5.55 EPS. The firm’s revenue for the quarter was down 3.6% on a year-over-year basis. On average, research analysts forecast that Caterpillar Inc. will post 21.87 earnings per share for the current year.

Caterpillar announced that its Board of Directors has initiated a share buyback program on Wednesday, June 12th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the industrial products company to buy up to 12.7% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Caterpillar Increases Dividend

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

Insider Activity at Caterpillar

In other news, Director Gerald Johnson bought 100 shares of the business’s stock in a transaction that occurred on Wednesday, September 4th. The stock was purchased at an average price of $338.59 per share, with a total value of $33,859.00. Following the purchase, the director now owns 2,842 shares of the company’s stock, valued at approximately $962,272.78. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Caterpillar news, insider Cheryl H. Johnson sold 2,975 shares of Caterpillar stock in a transaction dated Thursday, August 22nd. The stock was sold at an average price of $342.48, for a total value of $1,018,878.00. Following the completion of the sale, the insider now owns 15,615 shares in the company, valued at approximately $5,347,825.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Gerald Johnson bought 100 shares of the firm’s stock in a transaction dated Wednesday, September 4th. The shares were purchased at an average price of $338.59 per share, with a total value of $33,859.00. Following the acquisition, 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. In the last quarter, insiders sold 7,668 shares of company stock valued at $2,665,760. 0.33% of the stock is owned by insiders.

Analysts Set New Price Targets

Several analysts recently commented on the stock. UBS Group upped 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. StockNews.com downgraded Caterpillar from a “buy” rating to a “hold” rating in a research note on Thursday. Bank of America lowered their target price on Caterpillar from $385.00 to $376.00 and set a “buy” rating on the stock in a research note on Wednesday, August 7th. Citigroup started coverage on Caterpillar in a report on Wednesday, June 26th. They set a “buy” rating and a $380.00 price target for the company. Finally, Barclays boosted their price objective on shares of Caterpillar from $315.00 to $335.00 and gave the company an “equal weight” rating in a research note on Wednesday, August 7th. Two research analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have assigned a buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $336.31.

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.