Varma Mutual Pension Insurance Co Cuts Stock Holdings in Caterpillar Inc. (NYSE:CAT)

Varma Mutual Pension Insurance Co decreased its holdings in shares of Caterpillar Inc. (NYSE:CAT) by 12.0% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 87,856 shares of the industrial products company’s stock after selling 11,940 shares during the period. Varma Mutual Pension Insurance Co’s holdings in Caterpillar were worth $29,265,000 at the end of the most recent reporting period.

Other large investors have also modified their holdings of the company. Ballentine Partners LLC grew its holdings in Caterpillar by 1.6% during the second quarter. Ballentine Partners LLC now owns 7,196 shares of the industrial products company’s stock worth $2,397,000 after acquiring an additional 113 shares during the period. Koss Olinger Consulting LLC acquired a new position in shares of Caterpillar during the 2nd quarter worth $259,000. Caprock Group LLC increased its holdings in shares of Caterpillar by 59.9% in the 2nd quarter. Caprock Group LLC now owns 11,276 shares of the industrial products company’s stock valued at $3,756,000 after purchasing an additional 4,225 shares in the last quarter. Certuity LLC lifted its stake in shares of Caterpillar by 6.2% in the second quarter. Certuity LLC now owns 3,734 shares of the industrial products company’s stock valued at $1,244,000 after purchasing an additional 218 shares during the period. Finally, Kerusso Capital Management LLC purchased a new stake in Caterpillar during the second quarter worth about $1,435,000. 70.98% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

CAT has been the subject of a number of research reports. UBS Group lifted their price target on shares of Caterpillar from $270.00 to $285.00 and gave the company a “sell” rating in a research report on Wednesday, August 7th. Citigroup assumed coverage on Caterpillar in a report on Wednesday, June 26th. They set a “buy” rating and a $380.00 price objective for the company. Bank of America lowered their target price on Caterpillar from $385.00 to $376.00 and set a “buy” rating on the stock in a report on Wednesday, August 7th. StockNews.com lowered shares of Caterpillar from a “buy” rating to a “hold” rating in a research report on Thursday. Finally, Evercore ISI dropped their target price on shares of Caterpillar from $338.00 to $321.00 and set an “in-line” rating for the company in a report on Monday, August 19th. Two investment analysts have rated the stock with a sell rating, ten have given a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat.com, Caterpillar has a consensus rating of “Hold” and a consensus target price of $336.31.

Insider Activity

In related 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 transaction, the insider now owns 15,615 shares in the company, valued at $5,347,825.20. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In related news, Director Gerald Johnson bought 100 shares of the stock in a transaction dated Wednesday, September 4th. The stock was acquired at an average price of $338.59 per share, for a total transaction of $33,859.00. Following the completion of the purchase, the director now owns 2,842 shares in the company, valued at $962,272.78. The transaction was disclosed in a document filed with the SEC, 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 stock was sold at an average price of $342.48, for a total value of $1,018,878.00. Following the completion of the transaction, the insider now owns 15,615 shares of the company’s stock, valued at approximately $5,347,825.20. The disclosure for this sale can be found here. Insiders have sold 7,668 shares of company stock valued at $2,665,760 in the last three months. Corporate insiders own 0.33% of the company’s stock.

Caterpillar Trading Down 1.3 %

CAT stock traded down $4.20 during midday trading on Friday, hitting $329.36. The stock had a trading volume of 2,676,623 shares, compared to its average volume of 2,680,938. The company’s 50-day moving average price is $339.86 and its 200 day moving average price is $343.44. The company has a debt-to-equity ratio of 1.39, a current ratio of 1.28 and a quick ratio of 0.78. Caterpillar Inc. has a 12-month low of $223.76 and a 12-month high of $382.01. The firm has a market cap 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.

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

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 20th. Shareholders of record on Monday, July 22nd were paid a dividend of $1.41 per share. The ex-dividend date was Monday, July 22nd. This is a positive change from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 annualized dividend and a yield of 1.71%. Caterpillar’s dividend payout ratio is currently 25.46%.

Caterpillar declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, June 12th that permits the company to repurchase $20.00 billion in shares. This repurchase authorization permits the industrial products company to repurchase up to 12.7% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Caterpillar Company 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.