Barbara Oil Co. Makes New $13.31 Million Investment in Caterpillar Inc. $CAT

Key Points

• Barbara Oil Co. bought 12,500 Caterpillar shares worth approximately $13.31 million in the second quarter, making CAT its third-largest holding at about 4.5% of the portfolio. Institutional investors collectively own nearly 71% of Caterpillar.
• Caterpillar reported strong quarterly results, with adjusted EPS of $8.17 and revenue of $20.54 billion, surpassing estimates and rising 23.7% year over year. Growth prospects include AI-related power-generation demand and a partnership with FieldAI to develop autonomous equipment.
• Despite a “Moderate Buy” consensus and a $995.52 average analyst price target, valuation and insider selling remain concerns: CEO Joseph Creed sold about $26.2 million in shares, while CAT trades at roughly 35 times earnings and below its 50-day moving average.

Barbara Oil Co. purchased a new stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 12,500 shares of the industrial products company's stock, valued at approximately $13,311,000. Caterpillar comprises about 4.5% of Barbara Oil Co.'s investment portfolio, making the stock its 3rd biggest holding.

Several other hedge funds and other institutional investors also recently made changes to their positions in CAT. Diversify Advisory Services LLC purchased a new position in shares of Caterpillar during the second quarter valued at approximately $5,372,000. Axxcess Wealth Management LLC grew its holdings in Caterpillar by 2.8% during the 4th quarter. Axxcess Wealth Management LLC now owns 22,420 shares of the industrial products company's stock valued at $12,844,000 after buying an additional 604 shares in the last quarter. DSG Capital Advisors LLC bought a new position in shares of Caterpillar during the 1st quarter valued at approximately $1,226,000. Cornerstone Planning LLC purchased a new stake in shares of Caterpillar in the fourth quarter worth approximately $4,517,000. Finally, RiverFront Investment Group LLC lifted its holdings in Caterpillar by 21.1% during the 4th quarter. RiverFront Investment Group LLC now owns 8,915 shares of the industrial products company's stock valued at $5,107,000 after buying an additional 1,552 shares in the last quarter. 70.98% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: FieldAI partnership supports the automation outlook. Caterpillar is combining its construction-equipment expertise with FieldAI’s physical-AI technology to develop autonomous capabilities for machines and improve safety, productivity and visibility at jobsites. The initiative could create longer-term revenue opportunities in equipment, software and services. Caterpillar partners with FieldAI for equipment automation
• Positive Sentiment: Analyst and quantitative sentiment has improved. Zacks upgraded CAT to Rank #1, or “Strong Buy,” citing rising optimism about earnings prospects. Erste Group Bank also raised its fiscal 2026 EPS forecast, adding to the constructive outlook. Caterpillar upgraded to Strong Buy
• Positive Sentiment: AI infrastructure is boosting Power & Energy demand. Caterpillar’s retail sales to power-generation users reportedly surged 72% year over year in the second quarter, as data centers and generative-AI infrastructure increase demand for reliable power. This gives CAT an additional growth driver beyond traditional construction and mining markets. Can CAT Stock Compound Its Way Higher?
• Neutral Sentiment: Recent earnings performance remains a strength, but expectations are elevated. Caterpillar’s latest quarterly results exceeded consensus estimates for both earnings and revenue, with revenue up 23.7% year over year. A sector review described CAT as the strongest heavy-machinery performer, though investors are increasingly pricing in continued execution.
• Negative Sentiment: Valuation and performance concerns could limit upside. Commentary notes that CAT has outperformed peers in the stock market more than in underlying business performance, leaving the shares dependent on future growth. The stock has also declined since its latest earnings report, while a report tied the recent weakness to insider selling. CAT Has Left Its Peers Behind. Or Has It?

Analyst Ratings Changes

CAT has been the subject of a number of recent analyst reports. Rothschild & Co Redburn raised their price objective on Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a research report on Thursday, May 14th. Robert W. Baird set a $970.00 target price on shares of Caterpillar in a research note on Wednesday, August 5th. Wells Fargo & Company boosted their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a report on Tuesday, June 23rd. DA Davidson upped their price objective on Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. Finally, Citigroup increased their price objective on Caterpillar from $1,020.00 to $1,100.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $995.52.

Insider Buying and Selling

In other news, CEO Joseph E. Creed sold 32,401 shares of the stock in a transaction that occurred on 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 sale, 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 document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.33% of the stock is currently owned by corporate insiders.

Caterpillar Stock Performance

NYSE CAT opened at $813.51 on Friday. The business's 50-day moving average price is $872.52 and its 200 day moving average price is $838.46. Caterpillar Inc. has a 52-week low of $416.44 and a 52-week high of $1,073.46. The firm has a market cap of $373.95 billion, a P/E ratio of 35.00, a P/E/G ratio of 1.39 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 issued 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. The company had revenue of $20.54 billion for the quarter, compared to analyst estimates of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The business's revenue was up 23.7% on a year-over-year basis. During the same period in the previous year, the firm earned $4.72 EPS. On average, equities research analysts expect that Caterpillar Inc. will post 27.34 earnings per share for the current year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th were paid a $1.63 dividend. This is a boost from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date was Monday, July 20th. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.8%. Caterpillar's dividend payout ratio (DPR) is currently 28.06%.

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.

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