Caterpillar Inc. (NYSE:CAT) Shares Sold by Sound Income Strategies LLC

Sound Income Strategies LLC cut its stake in shares of Caterpillar Inc. (NYSE:CAT) by 13.7% during the first quarter, Holdings Channel.com reports. The institutional investor owned 1,608 shares of the industrial products company’s stock after selling 256 shares during the quarter. Sound Income Strategies LLC’s holdings in Caterpillar were worth $530,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds also recently added to or reduced their stakes in the business. Flagship Wealth Advisors LLC acquired a new position in shares of Caterpillar during the 4th quarter worth about $26,000. Halbert Hargrove Global Advisors LLC acquired a new position in Caterpillar during the fourth quarter worth $27,000. Cyrus J. Lawrence LLC acquired a new stake in shares of Caterpillar in the fourth quarter valued at $27,000. Noble Wealth Management PBC acquired a new stake in shares of Caterpillar in the fourth quarter valued at $31,000. Finally, Investment Management Corp VA ADV acquired a new stake in shares of Caterpillar in the fourth quarter valued at $33,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Stock Performance

NYSE CAT opened at $356.79 on Monday. The company’s fifty day moving average is $327.10 and its two-hundred day moving average is $347.86. The firm has a market capitalization of $168.06 billion, a price-to-earnings ratio of 16.17, a P/E/G ratio of 1.87 and a beta of 1.37. Caterpillar Inc. has a 52-week low of $267.30 and a 52-week high of $418.50. The company has a debt-to-equity ratio of 1.40, a current ratio of 1.42 and a quick ratio of 0.89.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Wednesday, April 30th. The industrial products company reported $4.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $4.35 by ($0.10). Caterpillar had a net margin of 16.65% and a return on equity of 58.18%. The firm had revenue of $14.25 billion for the quarter, compared to the consensus estimate of $14.64 billion. During the same period in the prior year, the business earned $5.60 earnings per share. The company’s revenue for the quarter was down 9.8% on a year-over-year basis. Equities research analysts forecast that Caterpillar Inc. will post 19.86 EPS for the current year.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 20th. Investors of record on Monday, July 21st will be issued a dividend of $1.51 per share. The ex-dividend date is Monday, July 21st. This represents a $6.04 dividend on an annualized basis and a yield of 1.69%. This is a boost from Caterpillar’s previous quarterly dividend of $1.41. Caterpillar’s payout ratio is currently 29.43%.

Analyst Ratings Changes

A number of research firms have weighed in on CAT. Bank of America raised their price target on Caterpillar from $335.00 to $385.00 and gave the company a “buy” rating in a research note on Friday, May 30th. UBS Group raised Caterpillar from a “sell” rating to a “neutral” rating and raised their price target for the stock from $272.00 to $357.00 in a report on Friday, May 16th. JPMorgan Chase & Co. reduced their price objective on shares of Caterpillar from $490.00 to $380.00 and set an “overweight” rating for the company in a research report on Monday, April 14th. Morgan Stanley upgraded shares of Caterpillar from an “underweight” rating to an “equal weight” rating and reduced their price target for the company from $300.00 to $283.00 in a research report on Wednesday, April 16th. Finally, Citigroup lifted their price objective on Caterpillar from $320.00 to $370.00 and gave the stock a “buy” rating in a research report on Monday, May 5th. Six equities research analysts have rated the stock with a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $372.92.

Insider Activity at Caterpillar

In other Caterpillar news, Director David Maclennan bought 375 shares of Caterpillar stock in a transaction that occurred on Wednesday, May 7th. The stock was acquired at an average price of $320.70 per share, for a total transaction of $120,262.50. Following the completion of the acquisition, the director now owns 6,653 shares of the company’s stock, valued at $2,133,617.10. This trade represents a 5.97% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 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.