Baird Financial Group Inc. Has $319.94 Million Stake in Caterpillar Inc. $CAT

Key Points

• Baird Financial Group reduced its Caterpillar stake by 2.1% in the second quarter, selling 6,416 shares but retaining 300,443 shares valued at approximately $319.94 million. Institutional investors collectively own 70.98% of CAT.
• Analysts maintain a generally positive outlook, with Caterpillar receiving a “Moderate Buy” consensus rating and an average price target of $994.17. Targets range from $925 to $1,165, although some firms have adopted neutral or hold ratings.
• Caterpillar reported strong quarterly results, including adjusted EPS of $8.17 versus the $6.22 consensus estimate and revenue of $20.54 billion, up 23.7% year over year. However, CEO Joseph Creed sold 32,401 shares, and the stock’s elevated valuation leaves it sensitive to slowing construction demand or weaker AI-related infrastructure spending.

Baird Financial Group Inc. reduced its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 2.1% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 300,443 shares of the industrial products company's stock after selling 6,416 shares during the quarter. Baird Financial Group Inc. owned 0.07% of Caterpillar worth $319,942,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Diversify Advisory Services LLC acquired a new position in shares of Caterpillar in the second quarter valued at about $5,372,000. D.B. Root & Company LLC acquired a new position in shares of Caterpillar during the 2nd quarter worth approximately $850,000. Dearborn Partners LLC acquired a new position in shares of Caterpillar during the 2nd quarter worth approximately $20,293,000. B. Metzler seel. Sohn & Co. AG grew its position in Caterpillar by 4.3% during the second quarter. B. Metzler seel. Sohn & Co. AG now owns 62,731 shares of the industrial products company's stock worth $66,802,000 after buying an additional 2,590 shares in the last quarter. Finally, Axxcess Wealth Management LLC grew its position in Caterpillar by 2.8% during the fourth quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock worth $12,844,000 after buying an additional 604 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently issued reports on CAT shares. UBS Group increased their target price on Caterpillar from $900.00 to $925.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Robert W. Baird set a $970.00 target price on shares of Caterpillar in a report on Wednesday, August 5th. Sanford C. Bernstein restated a "market perform" rating and issued a $1,002.00 target price on shares of Caterpillar in a research report on Wednesday, August 5th. Erste Group Bank lowered shares of Caterpillar from a "buy" rating to a "hold" rating in a research report on Monday, July 27th. Finally, JPMorgan Chase & Co. lifted their target price on Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a research report on Wednesday, June 17th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eleven have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $994.17.

Insider Transactions at Caterpillar

In other Caterpillar news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the transaction, the chief executive officer directly owned 34,555 shares of the company's stock, valued at approximately $27,954,303.90. The trade was a 48.39% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.33% of the stock is currently owned by corporate insiders.

Caterpillar Stock Performance

Shares of CAT stock opened at $782.57 on Wednesday. The business's 50-day moving average price is $846.69 and its 200-day moving average price is $841.12. The firm has a market capitalization of $359.73 billion, a price-to-earnings ratio of 33.67, a PEG ratio of 1.36 and a beta of 1.60. Caterpillar Inc. has a 12 month low of $434.28 and a 12 month high of $1,073.46. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65.

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

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s reported $72 billion order book is nearly as large as its $74.7 billion in trailing-twelve-month revenue, providing meaningful visibility if construction and infrastructure demand remain healthy. Should You Buy Caterpillar Stock With an Order Book Almost as Big as Its Annual Revenue?
• Positive Sentiment: Analysts and investment commentary continue to identify CAT as a beneficiary of data-center and AI-related capital spending, while also emphasizing its industrial diversification, earnings execution and dividend appeal. How Caterpillar Drives Sector-Leading Performance Beyond AI Models
• Positive Sentiment: Luck Stone is expanding Caterpillar’s autonomous hauling technology to two additional Virginia quarries after trucks moved more than 3.5 million tons during an 18-month deployment. The expansion supports CAT’s longer-term automation and productivity strategy. Luck Stone Builds on Autonomous Hauling Success with Caterpillar
• Positive Sentiment: Zacks added CAT to its Rank #1 Strong Buy and momentum lists, and separately included it among wide-moat stocks with durable competitive advantages. Best Momentum Stocks to Buy for September 14th
• Neutral Sentiment: The investment case depends on whether construction demand slows and whether AI/data-center orders prove durable. CAT’s valuation remains elevated, making the stock more sensitive to evidence of weaker future growth.
• Negative Sentiment: The recent decline in CAT and other industrial shares reflects concern that the data-center power and AI infrastructure trade may be unwinding, increasing near-term volatility despite the company’s strong backlog. Caterpillar Falls While Deere Edges Higher

Caterpillar Company 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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