Mid American Wealth Advisory Group Inc. has acquired a new stake in Caterpillar Inc. (NYSE: CAT), purchasing 72 shares valued at approximately $28,000. The acquisition was disclosed in the firm’s latest 13F filing with the U.S. Securities and Exchange Commission, indicating a strategic investment in the industrial products company during the second quarter of 2023.
Other institutional investors and hedge funds have also adjusted their holdings in Caterpillar. For instance, Compass Financial Services Inc. increased its stake by 49.2% in the first quarter, bringing its total to 94 shares valued at about $31,000. Family Legacy Financial Solutions LLC and Redmont Wealth Advisors LLC similarly each acquired new positions in Caterpillar, valued at approximately $32,000 and $33,000 respectively. Collectively, institutional investors and hedge funds now own 70.98% of Caterpillar’s stock.
Analysts’ Ratings and Market Outlook
Caterpillar has garnered attention from various financial analysts recently. Melius Research upgraded the stock from a “hold” rating to a “strong-buy” rating, setting a price target of $500.00. Following this, Bank of America adjusted its target price from $517.00 to $594.00, affirming a “buy” rating. Other notable upgrades include Robert W. Baird raising its target from $540.00 to $612.00, and Jefferies Financial Group lifting its price objective from $500.00 to $570.00. Currently, MarketBeat reports a consensus rating of “Moderate Buy” for Caterpillar, with a target price of approximately $515.40.
Insider trading activity has also been notable, with Director Susan C. Schwab selling 2,324 shares on August 15, 2023, for a total of $952,840.00. Following this transaction, Schwab retained 6,917 shares valued at around $2,835,970. Additionally, insider Jason Kaiser sold 2,161 shares on August 11, 2023, for nearly $902,649.70. The total shares sold by insiders in the last quarter amounted to 55,985 shares, valued at about $25,559,300.
Caterpillar’s Financial Performance
Caterpillar’s stock opened at $531.80 on Tuesday, with a market capitalization of $249.13 billion. The company reported earnings of $4.72 per share for the quarter ending August 5, 2023, which fell short of analysts’ expectations of $4.88 by $0.16. Despite this, Caterpillar’s revenue for the quarter reached $16.57 billion, surpassing estimates of $16.14 billion, although it represented a 0.7% decrease compared to the previous year.
Caterpillar has also announced a quarterly dividend of $1.51, which is scheduled to be paid on November 20, 2023, to investors of record as of October 20, 2023. This dividend reflects an annual payout of $6.04, yielding approximately 1.1%. The company’s dividend payout ratio currently stands at 30.72%.
Caterpillar Inc. continues to be a key player in the manufacturing and sales of construction and mining equipment, along with a range of industrial engines and turbines. The firm’s performance and strategic investments reflect both its resilience in the market and the ongoing interest from institutional investors.
