Legacy Financial Strategies LLC Decreases Position in Caterpillar Inc. (NYSE:CAT)

Legacy Financial Strategies LLC decreased its position in Caterpillar Inc. (NYSE:CAT) by 0.8% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 9,686 shares of the industrial products company’s stock after selling 78 shares during the quarter. Caterpillar makes up 0.9% of Legacy Financial Strategies LLC’s investment portfolio, making the stock its 16th largest position. Legacy Financial Strategies LLC’s holdings in Caterpillar were worth $3,549,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of CAT. Partnership Wealth Management LLC bought a new stake in Caterpillar during the fourth quarter worth about $26,000. Richardson Financial Services Inc. bought a new stake in Caterpillar during the fourth quarter worth about $27,000. Gilfoyle & Co LLC bought a new stake in Caterpillar during the fourth quarter worth about $30,000. Vima LLC bought a new stake in Caterpillar during the fourth quarter worth about $30,000. Finally, Pineridge Advisors LLC bought a new position in shares of Caterpillar in the fourth quarter worth approximately $36,000. Hedge funds and other institutional investors own 70.98% of the company’s stock.

Caterpillar Price Performance

CAT stock traded down $1.29 during trading on Friday, hitting $327.84. 8,116,888 shares of the company’s stock traded hands, compared to its average volume of 2,677,636. Caterpillar Inc. has a 52 week low of $223.76 and a 52 week high of $382.01. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.83 and a current ratio of 1.35. The business has a fifty day simple moving average of $344.06 and a 200 day simple moving average of $325.59. The stock has a market capitalization of $160.33 billion, a price-to-earnings ratio of 14.78, a P/E/G ratio of 1.66 and a beta of 1.14.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Thursday, April 25th. The industrial products company reported $5.60 EPS for the quarter, topping the consensus estimate of $5.12 by $0.48. The company had revenue of $15.80 billion for the quarter, compared to the consensus estimate of $16.07 billion. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. As a group, research analysts expect that Caterpillar Inc. will post 21.84 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company 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 $1.41 dividend. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 dividend on an annualized basis and a dividend yield of 1.72%. The ex-dividend date of this dividend is Monday, July 22nd. Caterpillar’s dividend payout ratio (DPR) is currently 23.48%.

Caterpillar declared that its board has authorized a stock repurchase plan on Wednesday, June 12th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the industrial products company to repurchase up to 12.7% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on CAT. Oppenheimer reissued a “market perform” rating on shares of Caterpillar in a report on Thursday, April 18th. Stifel Nicolaus cut shares of Caterpillar from a “buy” rating to a “hold” rating and boosted their price objective for the company from $293.00 to $350.00 in a report on Friday, April 26th. TD Cowen boosted their price objective on shares of Caterpillar from $338.00 to $340.00 and gave the company a “buy” rating in a report on Friday, April 26th. The Goldman Sachs Group boosted their price objective on shares of Caterpillar from $357.00 to $408.00 and gave the company a “buy” rating in a report on Tuesday, April 16th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Caterpillar from $385.00 to $435.00 and gave the company an “overweight” rating in a report on Tuesday, April 16th. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and eight have given a buy rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $323.35.

Insider Activity

In other news, insider Lange Bob De sold 21,847 shares of the firm’s stock in a transaction dated Monday, May 13th. The shares were 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 in the company, valued at approximately $25,380,943.50. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In other Caterpillar news, insider Cheryl H. Johnson sold 1,508 shares of Caterpillar stock in a transaction that occurred on Thursday, May 30th. The shares were sold at an average price of $340.00, for a total transaction of $512,720.00. Following the completion of the sale, the insider now directly owns 20,023 shares in the company, valued at approximately $6,807,820. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Lange Bob De sold 21,847 shares of Caterpillar stock in a transaction that occurred on Monday, May 13th. The shares were sold at an average price of $356.90, for a total transaction of $7,797,194.30. Following the sale, the insider now owns 71,115 shares of the company’s stock, valued at $25,380,943.50. The disclosure for this sale can be found here. Company insiders own 0.33% of the company’s stock.

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.