International Assets Investment Management Boosts Caterpillar Stake by $2.53 Million

International Assets Investment Management LLC has increased its holdings in Caterpillar Inc. (NYSE: CAT) by 2.0% in the second quarter of 2023, as reported in its recent filing with the U.S. Securities and Exchange Commission (SEC). The institutional investor now owns 6,515 shares of the industrial machinery giant, which are valued at approximately $2.53 million.

During the second quarter, International Assets Investment Management acquired an additional 130 shares of Caterpillar. This increase is part of a broader trend, as several other institutional investors have also adjusted their stakes in the company. For instance, Family Legacy Financial Solutions LLC established a new position worth $32,000 during the same quarter, while Harbor Asset Planning Inc. invested $34,000 in Caterpillar shares.

Additionally, Compass Financial Services Inc. raised its holdings by an impressive 49.2% in the first quarter, bringing its total to 94 shares valued at $31,000 after purchasing 31 extra shares. Other notable investments include Redmont Wealth Advisors LLC, which acquired a new stake worth $33,000, and Maseco LLP, with a new position valued at about $45,000. Overall, institutional investors and hedge funds currently own 70.98% of Caterpillar’s stock.

Insider Sales and Stock Performance

Recent insider trading activity has also caught attention. On August 11, Jason Kaiser, an insider at Caterpillar, sold 2,161 shares at an average price of $417.70, resulting in a total transaction value of $902,649.70. Post-sale, Kaiser retained 8,632 shares, valued at approximately $3.61 million, reflecting a 20.02% reduction in ownership.

In another transaction on September 2, Chairman Donald J. Umpleby III sold 17,168 shares at an average price of $412.87, totaling about $7.09 million. After this sale, Umpleby holds 482,505 shares, valued at roughly $199.21 million, indicating a decrease of 3.44% in his stake. In total, insiders at Caterpillar have sold 55,985 shares valued at around $25.56 million over the last quarter, with insiders owning 0.33% of the company.

Market Overview and Earnings Report

As of the opening on Friday, shares of Caterpillar traded at $527.41. The company has reported a current ratio of 1.34, a quick ratio of 0.81, and a debt-to-equity ratio of 1.50. Caterpillar’s market capitalization stands at $247.08 billion, with a price-to-earnings ratio of 26.83 and a beta of 1.46. Over the past twelve months, the stock has ranged from a low of $267.30 to a high of $544.99.

Caterpillar last released its earnings results on August 5, 2023. The company reported earnings per share (EPS) of $4.72, which fell short of the consensus estimate of $4.88 by $0.16. The business generated $16.57 billion in revenue for the quarter, surpassing analyst expectations of $16.14 billion, although this figure represented a 0.7% decline compared to the same quarter last year.

Looking ahead, analysts predict that Caterpillar Inc. will achieve an EPS of $19.86 for the current fiscal year.

Caterpillar has also announced a quarterly dividend of $1.51, to be paid on November 20, 2023, to stockholders of record as of October 20, 2023. This dividend represents an annualized payout of $6.04 and a yield of 1.1%, with a dividend payout ratio currently at 30.72%.

Caterpillar Inc. specializes in the manufacture and sale of construction and mining equipment, as well as diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. Its extensive product offerings include various machinery for construction and forestry, as well as related parts and tools, making it a significant player in the industrial sector.