Mayflower Financial Advisors LLC has expanded its investment in Caterpillar Inc. (NYSE: CAT) by 2.0% during the second quarter of 2023, according to HoldingsChannel.com. The firm now holds 3,995 shares of the industrial equipment manufacturer after acquiring an additional 77 shares in the period. As of the end of June, these holdings were valued at approximately $1,551,000.
Several other institutional investors have also adjusted their positions in Caterpillar recently. Mid American Wealth Advisory Group Inc. initiated a new stake worth $28,000 in the second quarter. Meanwhile, Compass Financial Services Inc. increased its stake by 49.2% during the first quarter, now owning 94 shares valued at around $31,000. Other new investments included Family Legacy Financial Solutions LLC at $32,000, Redmont Wealth Advisors LLC at $33,000, and Harbor Asset Planning Inc. at $34,000. Currently, institutional investors own approximately 70.98% of Caterpillar’s stock.
Recent Insider Activity
In related news, significant insider transactions have been reported. On August 15, 2023, Director Susan C. Schwab sold 2,324 shares at an average price of $410.00, totaling $952,840. Following this transaction, Schwab retains 6,917 shares valued at about $2,835,970, marking a 25.15% decrease in ownership.
Additionally, Chairman Donald J. Umpleby III sold 17,168 shares on September 2, 2023, for an average price of $412.87, amounting to $7,088,152.16. After this sale, Umpleby holds 482,505 shares valued at $199,211,839.35, reflecting a 3.44% decrease in his stake.
Over the past three months, insiders have sold a total of 55,985 shares valued at around $25,559,300, with corporate insiders owning 0.33% of the stock.
Caterpillar’s Financial Performance
Caterpillar released its quarterly earnings results on August 5, 2023, reporting earnings per share of $4.72, which fell short of the consensus estimate of $4.88 by $0.16. The company achieved a net margin of 14.95% and a return on equity of 48.95%, with revenue reaching $16.57 billion, surpassing the estimated $16.14 billion. However, this represented a 0.7% decline compared to the same quarter the previous year, when earnings per share stood at $5.99.
Analysts anticipate Caterpillar will report earnings per share of $19.86 for the current fiscal year.
Caterpillar also announced a quarterly dividend of $1.51 per share, scheduled for payment on November 20, 2023, to shareholders on record as of October 20, 2023. This dividend represents an annualized payout of $6.04, yielding approximately 1.2% and reflecting a dividend payout ratio of 30.72%.
Analyst Ratings and Market Outlook
Recent commentary from brokerages indicates a generally positive outlook for Caterpillar. Barclays has raised its price target for the stock from $425.00 to $485.00 while maintaining an “equal weight” rating. Melius Research upgraded its rating from “hold” to “strong buy,” setting a price target of $500.00. Truist Financial increased its target from $507.00 to $582.00, and Oppenheimer raised its price objective from $480.00 to $513.00.
Citigroup also adjusted its target higher, moving from $540.00 to $570.00, maintaining a “buy” rating. Currently, two analysts rate the stock as a strong buy, thirteen as a buy, and six as hold, according to MarketBeat, which indicates an average rating of “moderate buy” with a consensus price target of $518.19.
Caterpillar Inc. is a leading manufacturer of construction and mining equipment, as well as off-highway diesel and natural gas engines, and industrial gas turbines. The company’s diverse product line includes construction machinery, engines, and various related parts and tools.
For further details on Caterpillar’s performance and insights into institutional holdings, investors can visit HoldingsChannel.com for the latest 13F filings and insider trades.
