Azimuth Capital Investment Management LLC Cuts Stock Holdings in Caterpillar Inc. $CAT

Key Points

• Azimuth Capital Investment Management cut its Caterpillar stake by 56.7% in the second quarter, selling 5,780 shares and retaining 4,415 shares valued at approximately $4.7 million.
• Institutional ownership remains significant at 70.98%, with major investors including State Street, Geode Capital, Fisher Asset Management and Bank of America increasing their positions.
• Caterpillar reported strong quarterly results, with EPS of $8.17 and revenue of $20.54 billion exceeding estimates; analysts maintain a “Moderate Buy” consensus, though elevated valuation and recent insider selling present potential risks.

Azimuth Capital Investment Management LLC decreased its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 56.7% in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 4,415 shares of the industrial products company's stock after selling 5,780 shares during the period. Azimuth Capital Investment Management LLC's holdings in Caterpillar were worth $4,702,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of CAT. BlackRock Inc. acquired a new stake in Caterpillar in the second quarter valued at approximately $40,457,153,000. State Street Corp raised its stake in shares of Caterpillar by 1.1% during the 4th quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock worth $20,273,039,000 after buying an additional 385,204 shares during the period. Geode Capital Management LLC lifted its position in shares of Caterpillar by 0.9% during the 4th quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company's stock valued at $6,072,572,000 after buying an additional 94,524 shares in the last quarter. Fisher Asset Management LLC lifted its position in shares of Caterpillar by 0.6% during the 4th quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock valued at $5,438,408,000 after buying an additional 54,069 shares in the last quarter. Finally, Bank of America Corp DE grew its stake in Caterpillar by 16.0% in the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock valued at $3,860,457,000 after acquiring an additional 928,974 shares during the period. 70.98% of the stock is owned by hedge funds and other institutional investors.

Key Caterpillar News

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Broad-market strength supported CAT. Caterpillar was among the companies helping lead a roughly 550-point advance in the Dow, providing a favorable backdrop for industrial stocks. Cisco, Caterpillar share gains lead Dow's 550-point rally
• Positive Sentiment: CAT remains a top-performing industrial stock. Shares are up more than 40% this year, reflecting investor enthusiasm for construction, infrastructure and equipment demand. The strong rally also raises the possibility of profit-taking. Deere and Caterpillar Are Both Up Over 40% This Year
• Positive Sentiment: AI infrastructure is emerging as a growth catalyst. Reports highlight Caterpillar’s equipment orders extending toward 2030 and demand tied to data-center and infrastructure construction, broadening the company’s exposure beyond traditional industrial markets. CAT Could Be the Best AI Infrastructure Stock You’re Overlooking
• Positive Sentiment: Analyst estimates and ratings were generally supportive. Freedom Broker upgraded CAT to “buy” with a $980 price target, while Zacks raised its fourth-quarter 2026 EPS estimate to $6.73. Erste Group also modestly increased its fiscal 2027 EPS forecast to $32.28. The Lafayette City Council additionally approved incentives for an $890 million Caterpillar expansion, signaling continued investment capacity. Caterpillar upgraded by Freedom Broker
• Neutral Sentiment: Insider selling is a risk investors are monitoring. Caterpillar executives, including CEO Joseph Creed, have made substantial sales in recent months, although insider transactions may reflect diversification rather than a direct view on the company’s operating outlook. Caterpillar Inc. Stock Opinions on AI Partnership and Executive Stock Sale
• Negative Sentiment: Valuation and mixed estimates could limit further gains. CAT recently underperformed the broader market in a declining session, and Zacks trimmed its Q1 2028 EPS estimate to $7.87 from $7.94. With the stock trading well above its longer-term averages and at a premium valuation, investors may lock in profits if growth expectations moderate. Top Wide-Moat Stocks to Buy for Long-Term Wealth and Stability

Insider Activity

In other news, CEO Joseph E. Creed sold 32,401 shares of the company's stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the transaction, the chief executive officer directly owned 34,555 shares in the company, valued at approximately $27,954,303.90. This represents a 48.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 0.33% of the company's stock.

Analysts Set New Price Targets

A number of research firms have weighed in on CAT. Wells Fargo & Company upped their price objective on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 23rd. JPMorgan Chase & Co. lifted their target price on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a research report on Wednesday, June 17th. Sanford C. Bernstein restated a "market perform" rating and set a $1,002.00 price target on shares of Caterpillar in a research report on Wednesday, August 5th. Citigroup raised their price target on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the company a "buy" rating in a research note on Tuesday, July 14th. Finally, Freedom Broker upgraded Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 price objective on the stock in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eleven have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $994.17.

Caterpillar Stock Performance

NYSE:CAT opened at $818.48 on Monday. The company's 50-day moving average is $853.58 and its two-hundred day moving average is $840.90. Caterpillar Inc. has a 1-year low of $427.75 and a 1-year high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. The firm has a market capitalization of $376.23 billion, a price-to-earnings ratio of 35.22, a PEG ratio of 1.42 and a beta of 1.60.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The firm's revenue for the quarter was up 23.7% compared to the same quarter last year. During the same period in the prior year, the business posted $4.72 earnings per share. Analysts forecast that Caterpillar Inc. will post 27.37 EPS for the current year.

Caterpillar Profile

Caterpillar Inc is a global manufacturer of construction, mining, and industrial equipment. The company's products include excavators, dozers, wheel loaders, motor graders, articulated trucks, and off-highway trucks, as well as related attachments and work tools. Caterpillar also supplies replacement parts, equipment services, technology solutions, and rental support through its dealer network.

The company serves customers in construction, mining, quarrying, energy, transportation, forestry, agriculture, and government-related industries.

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