Federated Hermes Inc. Decreases Stake in Caterpillar Inc. (NYSE:CAT)

Federated Hermes Inc. decreased its holdings in shares of Caterpillar Inc. (NYSE:CAT) by 12.3% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 123,947 shares of the industrial products company’s stock after selling 17,461 shares during the quarter. Federated Hermes Inc.’s holdings in Caterpillar were worth $41,287,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the business. Acadian Asset Management LLC grew its stake in Caterpillar by 17.2% during the 1st quarter. Acadian Asset Management LLC now owns 9,037 shares of the industrial products company’s stock valued at $3,308,000 after acquiring an additional 1,327 shares in the last quarter. Diversify Advisory Services LLC purchased a new stake in shares of Caterpillar in the first quarter valued at approximately $926,000. Natixis Advisors LLC lifted its position in Caterpillar by 3.5% during the second quarter. Natixis Advisors LLC now owns 278,259 shares of the industrial products company’s stock worth $92,688,000 after buying an additional 9,321 shares in the last quarter. Bailard Inc. boosted its stake in Caterpillar by 3.1% during the second quarter. Bailard Inc. now owns 13,435 shares of the industrial products company’s stock worth $4,475,000 after buying an additional 398 shares during the last quarter. Finally, Aigen Investment Management LP purchased a new stake in Caterpillar in the 4th quarter valued at $222,000. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Caterpillar Price Performance

Shares of CAT opened at $345.31 on Friday. The company has a quick ratio of 0.78, a current ratio of 1.28 and a debt-to-equity ratio of 1.39. Caterpillar Inc. has a fifty-two week low of $223.76 and a fifty-two week high of $382.01. The company has a market cap of $167.44 billion, a P/E ratio of 15.59, a PEG ratio of 1.56 and a beta of 1.10. The firm’s 50 day moving average price is $340.70 and its 200 day moving average price is $343.95.

Caterpillar (NYSE:CAT) last announced its quarterly earnings data on Tuesday, August 6th. The industrial products company reported $5.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.53 by $0.46. Caterpillar had a return on equity of 59.88% and a net margin of 16.58%. The business had revenue of $16.69 billion for the quarter, compared to analysts’ expectations of $16.91 billion. During the same period last year, the firm earned $5.55 earnings per share. The company’s revenue for the quarter was down 3.6% compared to the same quarter last year. On average, research analysts forecast that Caterpillar Inc. will post 21.88 earnings per share for the current fiscal year.

Caterpillar announced that its Board of Directors has authorized a stock repurchase program on Wednesday, June 12th that allows the company to buyback $20.00 billion in outstanding shares. This buyback authorization allows the industrial products company to reacquire up to 12.7% of its shares through open market purchases. Shares buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

CAT has been the topic of several recent research reports. Citigroup began coverage on shares of Caterpillar in a research report on Wednesday, June 26th. They set a “buy” rating and a $380.00 price target on the stock. Truist Financial reissued a “buy” rating and issued a $399.00 price target (up previously from $390.00) on shares of Caterpillar in a research note on Wednesday, August 7th. Evercore ISI reduced their price target on shares of Caterpillar from $338.00 to $321.00 and set an “in-line” rating on the stock in a research report on Monday, August 19th. UBS Group increased their price objective on Caterpillar from $270.00 to $285.00 and gave the stock a “sell” rating in a research report on Wednesday, August 7th. Finally, StockNews.com upgraded Caterpillar from a “hold” rating to a “buy” rating in a research report on Friday. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and eight have given a buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $336.31.

Insider Activity

In other news, Director Gerald Johnson bought 100 shares of the business’s stock in a transaction that occurred on Wednesday, September 4th. The shares were purchased at an average cost of $338.59 per share, for a total transaction of $33,859.00. Following the completion of the purchase, the director now owns 2,842 shares of the company’s stock, valued at $962,272.78. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. In related news, insider Anthony D. Fassino sold 3,185 shares of the business’s stock in a transaction on Friday, August 30th. The shares were sold at an average price of $351.36, for a total transaction of $1,119,081.60. Following the completion of the transaction, the insider now owns 33,442 shares in the company, valued at $11,750,181.12. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Gerald Johnson purchased 100 shares of the business’s stock in a transaction on Wednesday, September 4th. The stock was acquired at an average price of $338.59 per share, for a total transaction of $33,859.00. Following the completion of the purchase, the director now owns 2,842 shares of the company’s stock, valued at $962,272.78. The disclosure for this purchase can be found here. In the last quarter, insiders sold 7,668 shares of company stock worth $2,665,760. 0.33% of the stock is currently owned by company insiders.

About Caterpillar

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.