Bank of Nova Scotia Decreases Stake in Caterpillar Inc. $CAT

Bank of Nova Scotia reduced its holdings in shares of Caterpillar Inc. (NYSE:CAT) by 15.8% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 341,679 shares of the industrial products company’s stock after selling 64,218 shares during the quarter. Bank of Nova Scotia owned 0.07% of Caterpillar worth $242,067,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors also recently modified their holdings of the company. Diamant Asset Management Inc. grew its stake in shares of Caterpillar by 68,427.2% in the first quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company’s stock worth $2,224,992,000 after acquiring an additional 3,136,020 shares during the period. Capital International Investors purchased a new stake in Caterpillar in the fourth quarter worth approximately $1,225,317,000. Northwestern Mutual Wealth Management Co. boosted its holdings in Caterpillar by 573.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company’s stock worth $861,947,000 after purchasing an additional 1,281,087 shares during the last quarter. Bank of America Corp DE grew its position in Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company’s stock worth $3,860,457,000 after purchasing an additional 928,974 shares during the period. Finally, Cynosure Group LLC raised its stake in Caterpillar by 8,359.6% during the 4th quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company’s stock valued at $294,314,000 after buying an additional 507,681 shares during the last quarter. 70.98% of the stock is owned by hedge funds and other institutional investors.

Caterpillar Stock Performance

NYSE CAT opened at $893.02 on Friday. The company has a quick ratio of 0.81, a current ratio of 1.35 and a debt-to-equity ratio of 1.64. Caterpillar Inc. has a twelve month low of $405.46 and a twelve month high of $1,073.46. The business has a 50-day moving average price of $928.87 and a 200-day moving average price of $803.52. The firm has a market cap of $411.32 billion, a price-to-earnings ratio of 44.45, a price-to-earnings-growth ratio of 1.74 and a beta of 1.57.

Caterpillar (NYSE:CAT) last posted its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts’ consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.The company had revenue of $17.41 billion for the quarter, compared to analysts’ expectations of $16.53 billion. During the same period in the previous year, the firm earned $4.25 EPS. The firm’s revenue was up 22.2% compared to the same quarter last year. As a group, equities research analysts predict that Caterpillar Inc. will post 24.87 EPS for the current fiscal year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Monday, July 20th will be given a dividend of $1.63 per share. This is a positive change from Caterpillar’s previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, July 20th. Caterpillar’s dividend payout ratio (DPR) is currently 32.45%.

Insider Activity at Caterpillar

In other Caterpillar news, CFO Andrew R. J. Bonfield sold 15,674 shares of the stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the completion of the transaction, the chief financial officer owned 52,935 shares of the company’s stock, valued at $48,631,913.85. This represents a 22.85% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Jason Kaiser sold 5,642 shares of the firm’s stock in a transaction dated Monday, May 4th. The shares were sold at an average price of $883.03, for a total value of $4,982,055.26. Following the transaction, the insider owned 9,594 shares of the company’s stock, valued at approximately $8,471,789.82. The trade was a 37.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 95,773 shares of company stock valued at $87,642,635 in the last ninety days. Corporate insiders own 0.33% of the company’s stock.

Analyst Ratings Changes

CAT has been the topic of several research analyst reports. HSBC increased their price target on Caterpillar from $850.00 to $1,100.00 in a report on Tuesday, May 5th. Wall Street Zen upgraded Caterpillar from a “hold” rating to a “buy” rating in a research report on Saturday, May 2nd. Argus increased their target price on Caterpillar from $820.00 to $990.00 and gave the company a “buy” rating in a report on Tuesday, May 5th. Daiwa Securities Group raised their target price on Caterpillar from $790.00 to $900.00 and gave the stock a “neutral” rating in a research report on Friday, May 1st. Finally, Bank of America upped their price target on shares of Caterpillar from $930.00 to $989.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Fifteen analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $980.57.

About Caterpillar

Caterpillar Inc is a global manufacturer of construction and mining equipment, diesel and natural gas engines, industrial gas turbines and locomotives. The company’s product portfolio includes earthmoving machines such as excavators, bulldozers, wheel loaders and off‑highway trucks, as well as a range of power generation products including generator sets and power systems for industrial and commercial use. Caterpillar serves customers across heavy construction, mining, energy, transportation and related industries with both equipment and integrated technology solutions.

In addition to manufacturing, Caterpillar provides a broad range of aftermarket parts and support services, including maintenance, repair, remanufacturing and fleet management tools.