DRH Investments Inc. Takes Position in Caterpillar Inc. $CAT

DRH Investments Inc. bought a new position in shares of Caterpillar Inc. (NYSE:CAT) during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 30,414 shares of the industrial products company’s stock, valued at approximately $11,807,000. Caterpillar comprises approximately 12.2% of DRH Investments Inc.’s holdings, making the stock its largest position.

Other large investors have also recently added to or reduced their stakes in the company. Fisher Asset Management LLC lifted its position in shares of Caterpillar by 2.3% in the second quarter. Fisher Asset Management LLC now owns 9,418,321 shares of the industrial products company’s stock valued at $3,656,286,000 after buying an additional 208,196 shares during the last quarter. Valeo Financial Advisors LLC raised its stake in Caterpillar by 36,842.1% in the 2nd quarter. Valeo Financial Advisors LLC now owns 7,299,751 shares of the industrial products company’s stock worth $2,833,836,000 after purchasing an additional 7,279,991 shares in the last quarter. Norges Bank bought a new stake in Caterpillar in the 2nd quarter valued at about $2,165,899,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in shares of Caterpillar by 6.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 4,204,445 shares of the industrial products company’s stock worth $1,386,626,000 after purchasing an additional 264,054 shares during the period. Finally, Charles Schwab Investment Management Inc. raised its position in shares of Caterpillar by 1.0% in the second quarter. Charles Schwab Investment Management Inc. now owns 3,337,915 shares of the industrial products company’s stock valued at $1,295,432,000 after buying an additional 33,467 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company’s stock.

Analyst Ratings Changes

CAT has been the topic of a number of recent research reports. HSBC upgraded Caterpillar from a “hold” rating to a “buy” rating and raised their price objective for the stock from $405.00 to $660.00 in a research note on Wednesday, November 5th. Wells Fargo & Company assumed coverage on Caterpillar in a research report on Thursday, November 13th. They issued an “overweight” rating and a $675.00 price target on the stock. UBS Group upped their price objective on shares of Caterpillar from $506.00 to $581.00 and gave the stock a “neutral” rating in a research report on Tuesday, November 4th. JPMorgan Chase & Co. raised their target price on shares of Caterpillar from $650.00 to $730.00 and gave the company an “overweight” rating in a report on Thursday, October 30th. Finally, DA Davidson upped their price target on shares of Caterpillar from $408.00 to $569.00 and gave the stock a “neutral” rating in a report on Monday, November 3rd. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Caterpillar presently has a consensus rating of “Moderate Buy” and an average target price of $610.32.

Insider Transactions at Caterpillar

In other news, insider Lange Bob De sold 14,638 shares of Caterpillar stock in a transaction dated Wednesday, November 5th. The stock was sold at an average price of $562.36, for a total transaction of $8,231,825.68. Following the sale, the insider directly owned 80,209 shares of the company’s stock, valued at approximately $45,106,333.24. This trade represents a 15.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Chairman Donald J. Umpleby III sold 17,166 shares of the firm’s stock in a transaction that occurred on Friday, October 10th. The shares were sold at an average price of $505.29, for a total transaction of $8,673,808.14. Following the completion of the transaction, the chairman owned 448,173 shares of the company’s stock, valued at approximately $226,457,335.17. This trade represents a 3.69% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 69,061 shares of company stock valued at $36,234,966. 0.33% of the stock is currently owned by corporate insiders.

Caterpillar Trading Down 1.4%

Shares of Caterpillar stock opened at $567.44 on Tuesday. The firm’s 50 day moving average is $532.35 and its 200 day moving average is $446.34. The firm has a market capitalization of $265.55 billion, a PE ratio of 29.13, a price-to-earnings-growth ratio of 3.33 and a beta of 1.51. Caterpillar Inc. has a 1 year low of $267.30 and a 1 year high of $596.21. The company has a current ratio of 1.38, a quick ratio of 0.81 and a debt-to-equity ratio of 1.34.

Caterpillar (NYSE:CAT) last issued its earnings results on Wednesday, October 29th. The industrial products company reported $4.95 earnings per share for the quarter, beating analysts’ consensus estimates of $4.52 by $0.43. The firm had revenue of $17.64 billion for the quarter, compared to analyst estimates of $16.72 billion. Caterpillar had a net margin of 14.34% and a return on equity of 47.16%. The company’s quarterly revenue was up 9.5% on a year-over-year basis. During the same quarter last year, the business posted $5.17 earnings per share. Equities research analysts forecast that Caterpillar Inc. will post 19.86 earnings per share for the current fiscal year.

Caterpillar Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, November 20th. Shareholders of record on Monday, October 20th were issued a $1.51 dividend. This represents a $6.04 dividend on an annualized basis and a yield of 1.1%. The ex-dividend date of this dividend was Monday, October 20th. Caterpillar’s dividend payout ratio is presently 31.01%.

Caterpillar Company Profile

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.