Accredited Investors Inc. Lowers Stake in Caterpillar Inc. (NYSE:CAT)

Accredited Investors Inc. reduced its stake in shares of Caterpillar Inc. (NYSE:CAT) by 17.4% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 2,345 shares of the industrial products company’s stock after selling 494 shares during the quarter. Accredited Investors Inc.’s holdings in Caterpillar were worth $781,000 at the end of the most recent quarter.

Other large investors have also recently made changes to their positions in the company. Partnership Wealth Management LLC purchased a new stake in Caterpillar in the fourth quarter worth about $26,000. Richardson Financial Services Inc. purchased a new stake in Caterpillar in the fourth quarter worth about $27,000. Thompson Investment Management Inc. purchased a new stake in Caterpillar in the first quarter worth about $27,000. Bbjs Financial Advisors LLC purchased a new stake in Caterpillar in the second quarter worth about $28,000. Finally, Fairman Group LLC purchased a new stake in Caterpillar in the first quarter worth about $29,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other news, insider Cheryl H. Johnson sold 1,508 shares of the stock in a transaction that occurred on Tuesday, July 16th. The stock was sold at an average price of $350.00, for a total transaction of $527,800.00. Following the transaction, the insider now owns 18,515 shares in the company, valued at approximately $6,480,250. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Insiders own 0.33% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on CAT shares. TD Cowen boosted their target price on shares of Caterpillar from $338.00 to $340.00 and gave the stock a “buy” rating in a report on Friday, April 26th. StockNews.com upgraded shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, August 10th. Bank of America reduced their target price on shares of Caterpillar from $385.00 to $376.00 and set a “buy” rating for the company in a report on Wednesday, August 7th. Citigroup started coverage on shares of Caterpillar in a report on Wednesday, June 26th. They issued a “buy” rating and a $380.00 target price for the company. Finally, Raymond James started coverage on shares of Caterpillar in a report on Friday, June 28th. They issued a “market perform” rating for the company. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and eight have assigned a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $336.31.

Caterpillar Stock Performance

NYSE:CAT traded up $1.21 during midday trading on Monday, hitting $344.69. The company’s stock had a trading volume of 2,252,628 shares, compared to its average volume of 2,729,413. The company has a debt-to-equity ratio of 1.41, a current ratio of 1.35 and a quick ratio of 0.83. Caterpillar Inc. has a fifty-two week low of $223.76 and a fifty-two week high of $382.01. The firm’s 50 day moving average is $334.79 and its 200-day moving average is $341.09. The firm has a market cap of $168.57 billion, a P/E ratio of 15.56, a P/E/G ratio of 1.72 and a beta of 1.12.

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

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

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 given a $1.41 dividend. This represents a $5.64 annualized dividend and a yield of 1.64%. The ex-dividend date is Monday, July 22nd. This is a positive change from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s dividend payout ratio is currently 25.46%.

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.