Cornerstone Wealth Group LLC Has $1.52 Million Stock Holdings in Caterpillar Inc. (NYSE:CAT)

Cornerstone Wealth Group LLC lifted its position in Caterpillar Inc. (NYSE:CAT) by 1.9% during the second quarter, HoldingsChannel.com reports. The fund owned 4,568 shares of the industrial products company’s stock after purchasing an additional 84 shares during the period. Cornerstone Wealth Group LLC’s holdings in Caterpillar were worth $1,522,000 at the end of the most recent quarter.

Other hedge funds have also recently bought and sold shares of the company. Thompson Investment Management Inc. acquired a new stake in Caterpillar during the 1st quarter worth approximately $27,000. Fairman Group LLC acquired a new stake in Caterpillar during the 1st quarter worth approximately $29,000. Bbjs Financial Advisors LLC acquired a new stake in Caterpillar during the 2nd quarter worth approximately $28,000. Partnership Wealth Management LLC acquired a new stake in Caterpillar during the 4th quarter worth approximately $26,000. Finally, Richardson Financial Services Inc. acquired a new stake in Caterpillar during the 4th quarter worth approximately $27,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Stock Performance

CAT traded up $6.05 during trading hours on Friday, reaching $348.41. The company’s stock had a trading volume of 2,181,032 shares, compared to its average volume of 2,706,085. The company’s 50-day moving average is $335.72 and its 200-day moving average is $341.31. 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 $170.39 billion, a PE ratio of 15.46, a price-to-earnings-growth ratio of 1.72 and a beta of 1.12. 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 (NYSE:CAT) last issued its quarterly earnings data on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share for the quarter, beating the consensus estimate of $5.53 by $0.46. The company had revenue of $16.69 billion for the quarter, compared to analyst estimates of $16.91 billion. Caterpillar had a net margin of 16.79% and a return on equity of 58.61%. The company’s revenue was down 3.6% on a year-over-year basis. During the same period in the prior year, the firm earned $5.55 earnings per share. On average, equities analysts forecast that Caterpillar Inc. will post 21.57 EPS for the current year.

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

Caterpillar Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd were issued a dividend of $1.41 per share. This represents a $5.64 dividend on an annualized basis and a dividend yield of 1.62%. The ex-dividend date of this dividend was Monday, July 22nd. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. Caterpillar’s payout ratio is currently 25.46%.

Insider Activity

In related news, insider Cheryl H. Johnson sold 1,508 shares of Caterpillar stock in a transaction that occurred on Tuesday, July 16th. The stock was sold at an average price of $350.00, for a total transaction of $527,800.00. Following the completion of the sale, the insider now directly owns 18,515 shares of the company’s stock, valued at approximately $6,480,250. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. In related news, insider Cheryl H. Johnson sold 2,975 shares of the company’s stock in a transaction dated 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 completion of the sale, the insider now owns 15,615 shares of the company’s stock, valued at $5,347,825.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Cheryl H. Johnson sold 1,508 shares of the firm’s stock in a transaction dated Tuesday, July 16th. The shares were sold at an average price of $350.00, for a total transaction of $527,800.00. Following the completion of the transaction, the insider now directly owns 18,515 shares in the company, valued at $6,480,250. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 5,991 shares of company stock valued at $2,059,398. 0.33% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several analysts have commented on CAT shares. Raymond James started coverage on shares of Caterpillar in a report on Friday, June 28th. They set a “market perform” rating on the stock. Truist Financial reiterated a “buy” rating and issued a $399.00 price objective (up from $390.00) on shares of Caterpillar in a report on Wednesday, August 7th. Bank of America lowered their price objective on shares of Caterpillar from $385.00 to $376.00 and set a “buy” rating on the stock in a report on Wednesday, August 7th. UBS Group lifted their price objective on shares of Caterpillar from $270.00 to $285.00 and gave the company a “sell” rating in a report on Wednesday, August 7th. Finally, Stifel Nicolaus downgraded shares of Caterpillar from a “buy” rating to a “hold” rating and lifted their price objective for the company from $293.00 to $350.00 in a report on Friday, April 26th. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating and eight have assigned a buy rating to the stock. Based on data from MarketBeat.com, Caterpillar has an average rating of “Hold” and an average price target 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.