14,041 Shares in Caterpillar Inc. $CAT Purchased by Great Lakes Advisors LLC

Key Points

• Great Lakes Advisors initiated a Caterpillar position by purchasing 14,041 shares worth approximately $14.95 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported a strong quarter, with EPS of $8.17 versus the $6.22 consensus and revenue of $20.54 billion, up 23.7% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $995.52.
• The company raised its quarterly dividend to $1.63 per share, equivalent to $6.52 annually and a 0.8% yield. However, CAT’s elevated valuation leaves the stock vulnerable if AI-related growth and power-equipment demand disappoint.

Great Lakes Advisors LLC bought a new position in Caterpillar Inc. (NYSE:CAT - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 14,041 shares of the industrial products company's stock, valued at approximately $14,952,000.

A number of other large investors have also recently modified their holdings of CAT. Lam Group Inc. bought a new position in shares of Caterpillar in the first quarter worth approximately $26,000. Frazier Financial Advisors LLC lifted its position in Caterpillar by 220.0% during the fourth quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 33 shares during the last quarter. Decker Retirement Planning Inc. grew its stake in Caterpillar by 440.0% in the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock worth $29,000 after buying an additional 22 shares in the last quarter. Cornerstone Financial Management LLC bought a new position in shares of Caterpillar in the 4th quarter worth $32,000. Finally, Matrix Trust Co increased its holdings in shares of Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock worth $33,000 after buying an additional 15 shares during the last quarter. Institutional investors own 70.98% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on CAT shares. JPMorgan Chase & Co. upped their target price on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 17th. Barclays raised their price target on Caterpillar from $800.00 to $900.00 and gave the company an "equal weight" rating in a research report on Thursday, August 6th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $1,002.00 price objective on shares of Caterpillar in a report on Wednesday, August 5th. Royal Bank Of Canada increased their price objective on Caterpillar from $877.00 to $897.00 and gave the company a "sector perform" rating in a research report on Wednesday, August 5th. Finally, UBS Group boosted their target price on Caterpillar from $900.00 to $925.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eleven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $995.52.

Caterpillar Price Performance

Shares of NYSE:CAT opened at $797.72 on Tuesday. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The stock has a market cap of $366.69 billion, a PE ratio of 34.33, a PEG ratio of 1.40 and a beta of 1.60. The company's fifty day moving average is $889.47 and its 200 day moving average is $838.20. Caterpillar Inc. has a 52 week low of $410.52 and a 52 week high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.22 by $1.95. The firm had revenue of $20.54 billion for the quarter, compared to analysts' expectations of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The company's revenue for the quarter was up 23.7% compared to the same quarter last year. During the same period last year, the firm earned $4.72 earnings per share. Research analysts anticipate that Caterpillar Inc. will post 27.14 earnings per share for the current year.

Caterpillar Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Monday, July 20th were given a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a yield of 0.8%. The ex-dividend date was Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's dividend payout ratio is 28.06%.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: July durable-goods orders rose 1.1%, suggesting a manufacturing rebound that could support demand for Caterpillar’s construction, mining and industrial equipment. CAT was identified as one of several industrial stocks positioned to benefit. 4 Industrial Stocks to Grab on Robust Jump in Durable Goods Orders
• Positive Sentiment: Erste Group Bank reportedly expects stronger earnings for Caterpillar, adding to the constructive analyst outlook surrounding the company. Erste Group Bank Predicts Stronger Earnings for Caterpillar
• Positive Sentiment: Caterpillar’s power-generation business is benefiting from rising electricity demand tied to data centers and artificial intelligence. Recent coverage points to a first-ever quarterly sales total above $20 billion and identifies power generation as an increasingly important growth engine. Forget the Industry Labels: Chevron and Caterpillar Are Both Betting on the AI Power Boom
• Positive Sentiment: The company is applying its autonomous-mining expertise to industrial AI deployment, including field-support tools such as the Cat AI Assistant. Caterpillar also committed $100 million to AI and robotics workforce training, which could improve productivity and strengthen its technology positioning. Caterpillar Commits $100 Million to AI and Robotics Training
• Neutral Sentiment: Wall Street’s average brokerage recommendation remains bullish, but the coverage notes that sell-side ratings are often overly optimistic and may have limited predictive value for CAT’s performance. Is Caterpillar a Buy as Wall Street Analysts Look Optimistic?
• Negative Sentiment: At a high earnings multiple, Caterpillar is increasingly being valued like a technology-growth company. That raises the risk of pressure on the stock if AI-related growth, power-equipment demand or earnings forecasts fail to exceed expectations. How AI Power Demand Transformed Caterpillar into a High-Multiple Tech Play

Caterpillar Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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