BKM Wealth Management LLC Cuts Stake in Caterpillar Inc. (NYSE:CAT)

BKM Wealth Management LLC cut its holdings in shares of Caterpillar Inc. (NYSE:CAT) by 57.6% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 210 shares of the industrial products company’s stock after selling 285 shares during the period. BKM Wealth Management LLC’s holdings in Caterpillar were worth $77,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of the business. Partnership Wealth Management LLC bought a new position in shares of Caterpillar in the fourth quarter worth about $26,000. Richardson Financial Services Inc. purchased a new position in Caterpillar during the 4th quarter valued at approximately $27,000. Thompson Investment Management Inc. bought a new position in shares of Caterpillar during the 1st quarter valued at approximately $27,000. Gilfoyle & Co LLC purchased a new stake in shares of Caterpillar in the fourth quarter valued at $30,000. Finally, Vima LLC bought a new stake in Caterpillar in the fourth quarter worth about $30,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Stifel Nicolaus cut Caterpillar from a “buy” rating to a “hold” rating and upped their target price for the stock from $293.00 to $350.00 in a report on Friday, April 26th. The Goldman Sachs Group upped their target price on Caterpillar from $357.00 to $408.00 and gave the stock a “buy” rating in a report on Tuesday, April 16th. Raymond James initiated coverage on Caterpillar in a report on Friday. They issued a “market perform” rating for the company. Oppenheimer reiterated a “market perform” rating on shares of Caterpillar in a report on Thursday, April 18th. Finally, HSBC upped their price objective on Caterpillar from $330.00 to $360.00 and gave the stock a “hold” rating in a research note on Tuesday, April 30th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and nine have issued a buy rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus price target of $329.63.

Insider Activity

In other news, Director David Maclennan acquired 500 shares of the business’s stock in a transaction dated Friday, May 3rd. The shares were acquired at an average cost of $337.39 per share, with a total value of $168,695.00. Following the completion of the acquisition, the director now owns 5,738 shares of the company’s stock, valued at $1,935,943.82. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. In related news, insider Lange Bob De sold 21,847 shares of the firm’s stock in a transaction dated Monday, May 13th. The stock was sold at an average price of $356.90, for a total transaction of $7,797,194.30. Following the sale, the insider now directly owns 71,115 shares of the company’s stock, valued at $25,380,943.50. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, Director David Maclennan bought 500 shares of the company’s stock in a transaction that occurred on Friday, May 3rd. The shares were bought at an average cost of $337.39 per share, for a total transaction of $168,695.00. Following the completion of the acquisition, the director now owns 5,738 shares of the company’s stock, valued at $1,935,943.82. The disclosure for this purchase can be found here. Corporate insiders own 0.33% of the company’s stock.

Caterpillar Trading Down 1.2 %

Caterpillar stock opened at $329.08 on Tuesday. The stock has a 50-day moving average of $339.74 and a two-hundred day moving average of $329.78. The company has a debt-to-equity ratio of 1.41, a quick ratio of 0.83 and a current ratio of 1.35. Caterpillar Inc. has a one year low of $223.76 and a one year high of $382.01. The stock has a market cap of $160.94 billion, a PE ratio of 14.86, a price-to-earnings-growth ratio of 1.71 and a beta of 1.12.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Thursday, April 25th. The industrial products company reported $5.60 earnings per share for the quarter, beating analysts’ consensus estimates of $5.12 by $0.48. The business had revenue of $15.80 billion for the quarter, compared to analyst estimates of $16.07 billion. Caterpillar had a return on equity of 58.61% and a net margin of 16.79%. On average, research analysts anticipate that Caterpillar Inc. will post 21.84 EPS for the current fiscal year.

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd will be issued a $1.41 dividend. The ex-dividend date of this dividend is Monday, July 22nd. This is a positive change from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 dividend on an annualized basis and a dividend yield of 1.71%. Caterpillar’s dividend payout ratio is currently 23.48%.

Caterpillar announced that its board has approved a stock repurchase program on Wednesday, June 12th that authorizes the company to buyback $20.00 billion in outstanding 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 usually an indication that the company’s leadership 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.