Drive Wealth Management LLC Boosts Stock Position in Caterpillar Inc. (NYSE:CAT)

Drive Wealth Management LLC raised its stake in shares of Caterpillar Inc. (NYSE:CAT) by 2.5% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 2,805 shares of the industrial products company’s stock after buying an additional 69 shares during the quarter. Drive Wealth Management LLC’s holdings in Caterpillar were worth $934,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in CAT. Partnership Wealth Management LLC purchased a new stake in Caterpillar during the 4th quarter valued at about $26,000. Richardson Financial Services Inc. bought a new stake in shares of Caterpillar during the fourth quarter valued at approximately $27,000. Thompson Investment Management Inc. purchased a new position in Caterpillar in the 1st quarter worth approximately $27,000. Bbjs Financial Advisors LLC bought a new position in Caterpillar in the 2nd quarter valued at approximately $28,000. Finally, Financial Connections Group Inc. purchased a new stake in Caterpillar during the 2nd quarter valued at $28,000. 70.98% of the stock is owned by institutional investors.

Caterpillar Trading Up 1.3 %

Caterpillar stock traded up $4.46 during midday trading on Friday, reaching $356.10. The stock had a trading volume of 2,974,052 shares, compared to its average volume of 2,369,276. The company has a quick ratio of 0.78, a current ratio of 1.28 and a debt-to-equity ratio of 1.39. The company has a fifty day moving average of $338.84 and a 200 day moving average of $342.75. Caterpillar Inc. has a 52-week low of $223.76 and a 52-week high of $382.01. The firm has a market cap of $172.67 billion, a price-to-earnings ratio of 16.08, a price-to-earnings-growth ratio of 1.66 and a beta of 1.12.

Caterpillar (NYSE:CAT) last announced its quarterly earnings results on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $5.53 by $0.46. The business had revenue of $16.69 billion for the quarter, compared to the consensus estimate of $16.91 billion. Caterpillar had a return on equity of 59.88% and a net margin of 16.58%. The business’s revenue was down 3.6% compared to the same quarter last year. During the same period last year, the business posted $5.55 EPS. On average, analysts anticipate that Caterpillar Inc. will post 21.87 earnings per share for the current fiscal year.

Caterpillar announced that its Board of Directors has approved a share buyback program on Wednesday, June 12th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the industrial products company to reacquire up to 12.7% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board believes its stock is undervalued.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd were 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 1.58%. The ex-dividend date of this dividend was Monday, July 22nd. Caterpillar’s dividend payout ratio (DPR) is currently 25.46%.

Insider Buying and Selling

In other Caterpillar news, insider Cheryl H. Johnson sold 2,975 shares of the firm’s stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $342.48, for a total value of $1,018,878.00. Following the completion of the sale, the insider now directly owns 15,615 shares in the company, valued at $5,347,825.20. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. In related news, insider Cheryl H. Johnson sold 1,508 shares of Caterpillar 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 in the company, valued at approximately $6,480,250. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Cheryl H. Johnson sold 2,975 shares of the company’s stock in a transaction that occurred on Thursday, August 22nd. The shares were sold at an average price of $342.48, for a total transaction of $1,018,878.00. Following the transaction, the insider now owns 15,615 shares in the company, valued at approximately $5,347,825.20. The disclosure for this sale can be found here. 0.33% of the stock is currently owned by company insiders.

Analyst Ratings Changes

CAT has been the topic of a number of research analyst reports. Truist Financial reaffirmed a “buy” rating and set a $399.00 price target (up from $390.00) on shares of Caterpillar in a report on Wednesday, August 7th. Evercore ISI reduced their price target on shares of Caterpillar from $338.00 to $321.00 and set an “in-line” rating for the company in a research note on Monday, August 19th. Citigroup began coverage on shares of Caterpillar in a research report on Wednesday, June 26th. They set a “buy” rating and a $380.00 price objective on the stock. Raymond James began coverage on Caterpillar in a research note on Friday, June 28th. They set a “market perform” rating for the company. Finally, StockNews.com raised shares of Caterpillar from a “hold” rating to a “buy” rating in a report on Saturday, August 10th. Two analysts have rated the stock with a sell rating, nine have given a hold rating and eight have given a buy rating to the company. According to data from MarketBeat, the stock presently 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.