Birmingham Capital Management Co. Inc. AL Takes Position in Caterpillar Inc. $CAT

Key Points

• Birmingham Capital Management acquired 38,575 Caterpillar shares worth approximately $41.1 million, making CAT its largest holding at 15.6% of the portfolio. Institutional investors own about 71% of the company.
• Caterpillar reported a strong quarter, with EPS of $8.17 beating estimates by $1.95 and revenue rising 23.7% year over year to $20.54 billion. The company also increased its quarterly dividend to $1.63 per share.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $995.52, although the stock’s elevated valuation and recent CEO share sale could limit upside.

Birmingham Capital Management Co. Inc. AL acquired a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 38,575 shares of the industrial products company's stock, valued at approximately $41,079,000. Caterpillar accounts for approximately 15.6% of Birmingham Capital Management Co. Inc. AL's portfolio, making the stock its biggest holding.

Other large investors have also bought and sold shares of the company. Lam Group Inc. purchased a new stake in Caterpillar in the first quarter worth $26,000. Frazier Financial Advisors LLC boosted its stake in Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock worth $28,000 after purchasing an additional 33 shares in the last quarter. Decker Retirement Planning Inc. grew its position in Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock valued at $29,000 after purchasing an additional 22 shares during the last quarter. Cornerstone Financial Management LLC purchased a new position in Caterpillar in the fourth quarter worth about $32,000. Finally, Matrix Trust Co lifted its position in Caterpillar by 93.8% in the 2nd quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock valued at $33,000 after acquiring an additional 15 shares in the last quarter. 70.98% of the stock is owned by institutional investors.

Caterpillar Price Performance

Shares of CAT stock opened at $813.51 on Monday. The company's 50-day simple moving average is $872.52 and its two-hundred day simple moving average is $838.91. The company has a debt-to-equity ratio of 1.65, a current ratio of 1.37 and a quick ratio of 0.85. Caterpillar Inc. has a one year low of $416.44 and a one year high of $1,073.46. The company has a market capitalization of $373.95 billion, a P/E ratio of 35.00, a P/E/G ratio of 1.41 and a beta of 1.60.

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, topping the consensus estimate of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The company had revenue of $20.54 billion for the quarter, compared to analysts' expectations of $19.34 billion. During the same quarter in the prior year, the firm earned $4.72 earnings per share. Caterpillar's revenue was up 23.7% compared to the same quarter last year. As a group, equities analysts anticipate that Caterpillar Inc. will post 27.34 EPS for the current year.

Caterpillar Increases Dividend

The business also recently disclosed 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. The ex-dividend date of this dividend was Monday, July 20th. This is an increase from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. Caterpillar's dividend payout ratio is 28.06%.

Insiders Place Their Bets

In related news, CEO Joseph E. Creed sold 32,401 shares of the business's stock in a transaction 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 transaction, the chief executive officer directly owned 34,555 shares in the company, valued at $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 is available through this link. 0.33% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on CAT. Citigroup upped their target price 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. Weiss Ratings raised shares of Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, August 19th. Barclays boosted their price objective on Caterpillar from $800.00 to $900.00 and gave the company an "equal weight" rating in a research report on Thursday, August 6th. Rothschild & Co Redburn raised their target price on shares of Caterpillar from $700.00 to $950.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Finally, Royal Bank Of Canada increased their target price on Caterpillar from $877.00 to $897.00 and gave the company a "sector perform" rating in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $995.52.

Trending Headlines about 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?

Caterpillar 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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