Texas Permanent School Fund Corp Decreases Stake in Caterpillar Inc. (NYSE:CAT)

Texas Permanent School Fund Corp cut its position in Caterpillar Inc. (NYSE:CAT) by 23.0% during the second quarter, according to its most recent Form 13F filing with the SEC. The firm owned 81,039 shares of the industrial products company’s stock after selling 24,193 shares during the period. Texas Permanent School Fund Corp’s holdings in Caterpillar were worth $26,994,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. Gilbert & Cook Inc. raised its holdings in shares of Caterpillar by 3.9% during the fourth quarter. Gilbert & Cook Inc. now owns 5,059 shares of the industrial products company’s stock valued at $1,496,000 after acquiring an additional 192 shares during the last quarter. 9258 Wealth Management LLC increased its stake in Caterpillar by 1.5% during the fourth quarter. 9258 Wealth Management LLC now owns 3,839 shares of the industrial products company’s stock worth $1,135,000 after purchasing an additional 55 shares during the period. Rollins Financial raised its stake in shares of Caterpillar by 49.1% in the fourth quarter. Rollins Financial now owns 6,395 shares of the industrial products company’s stock valued at $1,891,000 after acquiring an additional 2,107 shares in the last quarter. Gryphon Financial Partners LLC boosted its stake in shares of Caterpillar by 6.6% in the 4th quarter. Gryphon Financial Partners LLC now owns 1,496 shares of the industrial products company’s stock valued at $420,000 after buying an additional 92 shares during the period. Finally, Johnson Investment Counsel Inc. raised its stake in Caterpillar by 2.5% in the fourth quarter. Johnson Investment Counsel Inc. now owns 11,408 shares of the industrial products company’s stock valued at $3,373,000 after buying an additional 279 shares in the last quarter. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on CAT. Raymond James started coverage on Caterpillar in a research note on Friday, June 28th. They issued a “market perform” rating for the company. StockNews.com downgraded shares of Caterpillar from a “buy” rating to a “hold” rating in a research note on Thursday. Citigroup assumed coverage on Caterpillar in a research report on Wednesday, June 26th. They issued a “buy” rating and a $380.00 price target on the stock. Barclays upped their price target on Caterpillar from $315.00 to $335.00 and gave the stock an “equal weight” rating in a research note on Wednesday, August 7th. Finally, Bank of America lowered their target price 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. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have given a buy rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $336.31.

Insider Activity at Caterpillar

In related news, insider Cheryl H. Johnson sold 2,975 shares of the firm’s stock in a transaction dated Thursday, August 22nd. The stock was sold at an average price of $342.48, for a total transaction 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 $5,347,825.20. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In related news, insider Cheryl H. Johnson sold 2,975 shares of Caterpillar stock in a transaction 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 transaction, the insider now directly owns 15,615 shares in the company, valued at approximately $5,347,825.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Gerald Johnson purchased 100 shares of the firm’s stock in a transaction that occurred on Wednesday, September 4th. The stock was bought at an average price of $338.59 per share, with a total value of $33,859.00. Following the transaction, the director now directly owns 2,842 shares in the company, valued at $962,272.78. The disclosure for this purchase can be found here. Insiders have sold 7,668 shares of company stock worth $2,665,760 over the last quarter. 0.33% of the stock is currently owned by company insiders.

Caterpillar Stock Performance

Shares of Caterpillar stock traded up $5.05 on Monday, reaching $334.41. 412,800 shares of the company were exchanged, compared to its average volume of 2,667,375. The firm has a market cap of $162.16 billion, a price-to-earnings ratio of 14.87, a P/E/G ratio of 1.54 and a beta of 1.10. Caterpillar Inc. has a 1-year low of $223.76 and a 1-year high of $382.01. The company has a debt-to-equity ratio of 1.39, a quick ratio of 0.78 and a current ratio of 1.28. The company’s 50-day moving average is $339.86 and its two-hundred day moving average is $343.63.

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. Caterpillar had a net margin of 16.58% and a return on equity of 59.88%. The firm had revenue of $16.69 billion for the quarter, compared to the consensus estimate of $16.91 billion. During the same period last year, the firm posted $5.55 EPS. Caterpillar’s quarterly revenue was down 3.6% compared to the same quarter last year. As a group, research analysts expect that Caterpillar Inc. will post 21.87 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, August 20th. Stockholders of record on Monday, July 22nd were issued a $1.41 dividend. The ex-dividend date was Monday, July 22nd. This is a boost from Caterpillar’s previous quarterly dividend of $1.30. This represents a $5.64 annualized dividend and a dividend yield of 1.69%. Caterpillar’s dividend payout ratio (DPR) is 25.46%.

Caterpillar declared that its board has authorized a stock buyback plan on Wednesday, June 12th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the industrial products company to reacquire up to 12.7% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is 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.