Sigma Investment Counselors Inc. Raises Position in Caterpillar Inc. (NYSE:CAT)

Sigma Investment Counselors Inc. lifted its position in shares of Caterpillar Inc. (NYSE:CAT) by 1.9% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 26,502 shares of the industrial products company’s stock after purchasing an additional 487 shares during the period. Sigma Investment Counselors Inc.’s holdings in Caterpillar were worth $8,828,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of the company. Partnership Wealth Management LLC acquired a new position in Caterpillar in the fourth quarter valued at $26,000. Richardson Financial Services Inc. acquired a new position in Caterpillar during the fourth quarter worth about $27,000. Thompson Investment Management Inc. purchased a new stake in shares of Caterpillar in the first quarter valued at about $27,000. Bbjs Financial Advisors LLC purchased a new stake in shares of Caterpillar in the second quarter valued at about $28,000. Finally, Fairman Group LLC purchased a new stake in shares of Caterpillar in the first quarter valued at about $29,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Stock Performance

Shares of NYSE CAT traded up $6.05 during midday trading on Friday, hitting $348.41. The company’s stock had a trading volume of 2,183,912 shares, compared to its average volume of 2,706,098. Caterpillar Inc. has a 1-year low of $223.76 and a 1-year high of $382.01. The firm’s fifty day moving average price is $336.26 and its 200-day moving average price is $341.63. 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 firm has a market cap of $170.39 billion, a P/E ratio of 15.73, a P/E/G ratio of 1.72 and a beta of 1.12.

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

Caterpillar announced that its board has approved a share repurchase program on Wednesday, June 12th that allows the company to repurchase $20.00 billion in outstanding shares. This repurchase authorization allows the industrial products company to purchase up to 12.7% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, August 20th. Shareholders of record on Monday, July 22nd were paid a dividend of $1.41 per share. This represents a $5.64 dividend on an annualized basis and a yield of 1.62%. This is a positive change from Caterpillar’s previous quarterly dividend of $1.30. The ex-dividend date was Monday, July 22nd. Caterpillar’s payout ratio is presently 25.46%.

Insider Buying and Selling at Caterpillar

In other Caterpillar news, insider Cheryl H. Johnson sold 1,508 shares of the business’s stock in a transaction dated 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 transaction, the insider now directly owns 18,515 shares of the company’s stock, valued at approximately $6,480,250. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In other news, insider Cheryl H. Johnson sold 1,508 shares of the company’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 sale, the insider now directly owns 18,515 shares of the company’s stock, valued at approximately $6,480,250. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Cheryl H. Johnson sold 2,975 shares of the company’s stock in a transaction that occurred on Thursday, August 22nd. The stock was sold at an average price of $342.48, for a total transaction of $1,018,878.00. Following the completion of the sale, the insider now directly owns 15,615 shares of the company’s stock, valued at $5,347,825.20. The disclosure for this sale can be found here. Insiders sold 5,991 shares of company stock valued at $2,059,398 in the last ninety days. Company insiders own 0.33% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on CAT. Citigroup began coverage on shares of Caterpillar in a research note on Wednesday, June 26th. They set a “buy” rating and a $380.00 price objective on the stock. StockNews.com raised shares of Caterpillar from a “hold” rating to a “buy” rating in a research report on Saturday, August 10th. Raymond James initiated coverage on shares of Caterpillar in a research report on Friday, June 28th. They issued a “market perform” rating for the company. Truist Financial reissued a “buy” rating and issued a $399.00 target price (up previously from $390.00) on shares of Caterpillar in a research note on Wednesday, August 7th. Finally, Evercore ISI dropped their price target on shares of Caterpillar from $338.00 to $321.00 and set an “in-line” rating on the stock in a research note on Monday, August 19th. Two research analysts have rated the stock with a sell rating, nine have issued a hold rating and eight have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $336.31.

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.