International Assets Increases Stake in Caterpillar to $2.53 Million

International Assets Investment Management LLC has increased its stake in Caterpillar Inc. (NYSE: CAT) by 2.0% during the second quarter of 2023. According to a recent filing with the U.S. Securities and Exchange Commission (SEC), the institutional investor now owns 6,515 shares of the industrial products company after acquiring an additional 130 shares in this period. This brings the total value of its holdings to approximately $2.53 million.

Several other institutional investors have also adjusted their positions in Caterpillar. Family Legacy Financial Solutions LLC purchased a new stake valued at $32,000, while Harbor Asset Planning Inc. acquired shares worth $34,000. Compass Financial Services Inc. significantly increased its holdings by 49.2% in the first quarter, now owning 94 shares valued at about $31,000. Redmont Wealth Advisors LLC and Maseco LLP also entered new positions in the company with investments of $33,000 and $45,000, respectively. Notably, institutional investors and hedge funds collectively own 70.98% of Caterpillar’s stock.

In a separate matter, insider trading activity has also drawn attention. On August 11, Jason Kaiser, an insider, sold 2,161 shares at an average price of $417.70, totaling $902,649.70. Following this sale, Kaiser retained 8,632 shares, valued at approximately $3.61 million, reflecting a 20.02% decrease in his ownership. Additionally, Chairman Donald J. Umpleby III sold 17,168 shares on September 2 for around $7.09 million, reducing his holdings by 3.44%.

Overall, insiders have sold 55,985 shares of Caterpillar valued at $25.56 million in the last quarter. Currently, insiders own just 0.33% of the company’s stock.

Market Performance and Financial Results

Caterpillar’s stock opened at $527.41 on Friday, reflecting a decline of 2.5%. The company maintains a market capitalization of $247.08 billion, a price-to-earnings ratio of 26.83, and a debt-to-equity ratio of 1.50. Over the past year, the stock has fluctuated between a low of $267.30 and a high of $544.99. Its 50-day moving average price stands at $453.38, while the 200-day moving average is $390.93.

Caterpillar reported its earnings results on August 5, revealing an earnings per share (EPS) of $4.72 for the quarter, which fell short of analyst expectations of $4.88 by $0.16. The company’s revenue for the quarter reached $16.57 billion, surpassing analyst estimates of $16.14 billion. In comparison to the previous year, revenue experienced a 0.7% decrease, while the firm posted $5.99 EPS during the same period last year. Analysts predict that Caterpillar will achieve an EPS of $19.86 for the current fiscal year.

Dividend Announcement

Caterpillar has also announced a quarterly dividend of $1.51 per share, scheduled for distribution on November 20. Shareholders of record by October 20 will be eligible for this payment, which translates to an annualized dividend of $6.04 and a yield of 1.1%. The company’s dividend payout ratio currently stands at 30.72%.

Caterpillar Inc. designs and manufactures a wide range of construction and mining equipment, as well as engines and turbines, serving customers globally. Its extensive product offerings include asphalt pavers, excavators, and industrial gas turbines, among others. As the company navigates market challenges, investor interest remains strong, contributing to its robust position in the industry.