PSI Advisors LLC Boosts Stock Position in Caterpillar Inc. (NYSE:CAT)

PSI Advisors LLC raised its stake in Caterpillar Inc. (NYSE:CAT) by 1.6% during the 2nd quarter, HoldingsChannel reports. The firm owned 2,251 shares of the industrial products company’s stock after acquiring an additional 35 shares during the period. PSI Advisors LLC’s holdings in Caterpillar were worth $750,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also modified their holdings of the stock. Partnership Wealth Management LLC purchased a new position in shares of Caterpillar during the 4th quarter worth approximately $26,000. Richardson Financial Services Inc. purchased a new position in Caterpillar in the fourth quarter valued at about $27,000. Thompson Investment Management Inc. acquired a new stake in shares of Caterpillar during the 1st quarter valued at approximately $27,000. Bbjs Financial Advisors LLC purchased a new stake in shares of Caterpillar during the 2nd quarter worth approximately $28,000. Finally, Fairman Group LLC acquired a new stake in shares of Caterpillar in the 1st quarter worth approximately $29,000. Institutional investors and hedge funds own 70.98% of the company’s stock.

Analysts Set New Price Targets

A number of analysts have commented on the company. Raymond James assumed coverage on Caterpillar in a research report on Friday, June 28th. They set a “market perform” rating on the stock. Barclays boosted their price objective on shares of Caterpillar from $315.00 to $335.00 and gave the stock an “equal weight” rating in a research report on Wednesday, August 7th. Citigroup assumed coverage on shares of Caterpillar in a report on Wednesday, June 26th. They set a “buy” rating and a $380.00 target price for the company. Bank of America lowered their price target on shares of Caterpillar from $385.00 to $376.00 and set a “buy” rating on the stock in a research report on Wednesday, August 7th. Finally, Truist Financial reiterated a “buy” rating and set a $399.00 price objective (up previously from $390.00) on shares of Caterpillar in a research report on Wednesday, August 7th. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and eight have issued a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $336.31.

Insider Activity at Caterpillar

In other news, insider Cheryl H. Johnson sold 1,508 shares of Caterpillar stock in a transaction dated Tuesday, July 16th. The stock was sold at an average price of $350.00, for a total transaction of $527,800.00. Following the sale, the insider now directly owns 18,515 shares of the company’s stock, valued at $6,480,250. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.33% of the company’s stock.

Caterpillar Trading Down 0.2 %

Shares of CAT stock traded down $0.61 during mid-day trading on Thursday, reaching $342.36. The company’s stock had a trading volume of 2,014,511 shares, compared to its average volume of 2,709,325. The company has a quick ratio of 0.83, a current ratio of 1.35 and a debt-to-equity ratio of 1.41. The firm has a market capitalization of $167.43 billion, a PE ratio of 15.46, a price-to-earnings-growth ratio of 1.72 and a beta of 1.12. The company’s 50 day simple moving average is $335.72 and its 200-day simple moving average is $341.31. Caterpillar Inc. has a 12-month low of $223.76 and a 12-month high of $382.01.

Caterpillar (NYSE:CAT) last issued its earnings results on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share 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 company had revenue of $16.69 billion during the quarter, compared to the consensus estimate of $16.91 billion. During the same quarter in the prior year, the business earned $5.55 earnings per share. The company’s revenue was down 3.6% compared to the same quarter last year. On average, research analysts predict that Caterpillar Inc. will post 21.57 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd were given a dividend of $1.41 per share. 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 1.65%. The ex-dividend date was Monday, July 22nd. Caterpillar’s payout ratio is presently 25.46%.

Caterpillar declared that its Board of Directors has authorized a stock buyback program on Wednesday, June 12th that authorizes the company to buyback $20.00 billion in shares. This buyback authorization authorizes the industrial products company to purchase up to 12.7% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

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.