Bank of America Corp DE Buys New Holdings in Caterpillar Inc. $CAT

Key Points

• Bank of America acquired a major new Caterpillar position in the second quarter, purchasing 5.46 million shares valued at approximately $5.82 billion, or 1.19% of the company. Institutional investors and hedge funds collectively own about 70.98% of CAT.
• Caterpillar’s latest quarterly results exceeded expectations: EPS came in at $8.17 versus the $6.22 consensus estimate, while revenue rose 23.7% year over year to $20.54 billion.
• Insider selling and elevated valuation remain risks. CEO Joseph Creed sold 32,401 shares for about $26.2 million, while CAT trades at a P/E ratio of 35.22 despite generally supportive analyst sentiment and a “Moderate Buy” consensus rating.

Bank of America Corp DE purchased a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 5,463,565 shares of the industrial products company's stock, valued at approximately $5,818,150,000. Bank of America Corp DE owned 1.19% of Caterpillar as of its most recent filing with the SEC.

Other hedge funds have also recently added to or reduced their stakes in the company. Birmingham Capital Management Co. Inc. AL acquired a new stake in Caterpillar in the second quarter valued at approximately $41,079,000. Blodgett Wealth Advisors LLC bought a new stake in Caterpillar during the 2nd quarter valued at $442,000. Magnolia Capital Advisors LLC acquired a new position in Caterpillar during the second quarter worth $1,522,000. Port Capital LLC bought a new position in shares of Caterpillar in the second quarter valued at $396,000. Finally, Vantage Point Financial LLC acquired a new position in shares of Caterpillar during the second quarter valued at about $6,634,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Insider Buying and Selling at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction dated Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the transaction, the chief executive officer owned 34,555 shares in the company, valued at approximately $27,954,303.90. This represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 0.33% of the company's stock.

Key Stories Impacting Caterpillar

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

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on CAT. UBS Group upped their target price on shares of Caterpillar from $900.00 to $925.00 and gave the stock a "neutral" rating in a report on Wednesday, August 5th. Sanford C. Bernstein reissued a "market perform" rating and set a $1,002.00 price objective on shares of Caterpillar in a report on Wednesday, August 5th. Weiss Ratings raised Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 19th. JPMorgan Chase & Co. raised their target price on Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a report on Wednesday, June 17th. Finally, Erste Group Bank cut Caterpillar from a "buy" rating to a "hold" rating in a research report on Monday, July 27th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $994.17.

Caterpillar Price Performance

Caterpillar stock opened at $818.48 on Monday. Caterpillar Inc. has a 52 week low of $427.75 and a 52 week high of $1,073.46. The company's 50 day moving average price is $853.58 and its two-hundred day moving average price is $840.90. The stock has a market cap of $376.23 billion, a P/E ratio of 35.22, a P/E/G ratio of 1.42 and a beta of 1.60. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT - Get Free Report) last posted 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 business 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 business's revenue was up 23.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $4.72 earnings per share. On average, equities analysts predict that Caterpillar Inc. will post 27.37 earnings per share for the current year.

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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