MainStreet Investment Advisors LLC Sells 4,364 Shares of Caterpillar Inc. (NYSE:CAT)

MainStreet Investment Advisors LLC decreased its stake in shares of Caterpillar Inc. (NYSE:CAT) by 12.2% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 31,278 shares of the industrial products company’s stock after selling 4,364 shares during the quarter. Caterpillar makes up 1.3% of MainStreet Investment Advisors LLC’s portfolio, making the stock its 24th largest position. MainStreet Investment Advisors LLC’s holdings in Caterpillar were worth $10,419,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

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

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. Raymond James started coverage on shares of Caterpillar in a research report on Friday, June 28th. They issued a “market perform” rating for the company. Bank of America dropped their target price on Caterpillar from $385.00 to $376.00 and set a “buy” rating on the stock in a research report on Wednesday, August 7th. Truist Financial reissued a “buy” rating and issued a $399.00 price target (up from $390.00) on shares of Caterpillar in a research report on Wednesday, August 7th. Citigroup initiated coverage on Caterpillar in a research note on Wednesday, June 26th. They issued a “buy” rating and a $380.00 target price on the stock. Finally, Barclays increased their price target on shares of Caterpillar from $315.00 to $335.00 and gave the company an “equal weight” rating in a research report on Wednesday, August 7th. Two investment analysts have rated the stock with a sell rating, ten have assigned a hold rating and seven have issued a buy rating to the stock. According to data from MarketBeat.com, Caterpillar currently has an average rating of “Hold” and a consensus target price of $336.31.

Insider Buying and Selling

In related news, Director Gerald Johnson purchased 100 shares of the business’s stock in a transaction on Wednesday, September 4th. The shares were bought at an average cost of $338.59 per share, with a total value of $33,859.00. Following the transaction, the director now owns 2,842 shares of the company’s stock, valued at $962,272.78. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In related news, Director Gerald Johnson acquired 100 shares of the stock in a transaction on Wednesday, September 4th. The shares were acquired at an average price of $338.59 per share, for a total transaction of $33,859.00. Following the transaction, the director now owns 2,842 shares in the company, valued at approximately $962,272.78. The purchase was disclosed in a filing with the SEC, which is available through this link. Also, insider Anthony D. Fassino sold 3,185 shares of Caterpillar stock in a transaction that occurred on Friday, August 30th. The shares were sold at an average price of $351.36, for a total transaction of $1,119,081.60. Following the transaction, the insider now directly owns 33,442 shares of the company’s stock, valued at $11,750,181.12. The disclosure for this sale can be found here. Insiders sold a total of 7,668 shares of company stock valued at $2,665,760 over the last 90 days. Insiders own 0.33% of the company’s stock.

Caterpillar Price Performance

Shares of CAT opened at $329.36 on Friday. The firm has a market capitalization of $161.07 billion, a PE ratio of 14.87, a price-to-earnings-growth ratio of 1.66 and a beta of 1.10. The company has a debt-to-equity ratio of 1.39, a current ratio of 1.28 and a quick ratio of 0.78. The company’s fifty day moving average price is $339.86 and its 200-day moving average price is $343.44. Caterpillar Inc. has a 1-year low of $223.76 and a 1-year high of $382.01.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share 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 analyst estimates of $16.91 billion. Caterpillar had a return on equity of 59.88% and a net margin of 16.58%. The company’s revenue was down 3.6% on a year-over-year basis. During the same period in the prior year, the company earned $5.55 earnings per share. On average, equities research analysts predict that Caterpillar Inc. will post 21.87 EPS for the current year.

Caterpillar Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd were paid a $1.41 dividend. The ex-dividend date of this dividend was Monday, July 22nd. This represents a $5.64 dividend on an annualized basis and a dividend yield of 1.71%. This is a positive change from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s dividend payout ratio is presently 25.46%.

Caterpillar announced that its Board of Directors has approved a stock repurchase plan 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 repurchase up to 12.7% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management 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.