Brookstone Capital Management Sells 22,324 Shares of Caterpillar Inc. $CAT

Key Points

• Brookstone Capital Management reduced its Caterpillar stake by 36.8% in the second quarter, selling 22,324 shares and retaining 38,296 shares valued at approximately $40.8 million. Institutional investors still own nearly 71% of Caterpillar’s stock.
• Caterpillar delivered a strong quarter, reporting $8.17 in adjusted earnings per share and $20.54 billion in revenue, up 23.7% year over year and well above analyst expectations. The company also ended the quarter with a record $72 billion backlog, supporting its growth outlook.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $995.52, though some caution that Caterpillar’s elevated valuation will require continued margin improvement. The company raised its quarterly dividend to $1.63 per share, equal to a 0.8% annualized yield.

Brookstone Capital Management cut its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 36.8% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 38,296 shares of the industrial products company's stock after selling 22,324 shares during the quarter. Brookstone Capital Management's holdings in Caterpillar were worth $40,782,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds also recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in Caterpillar by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock worth $26,572,681,000 after purchasing an additional 442,164 shares during the last quarter. State Street Corp increased its stake in Caterpillar by 1.1% in the 4th quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock valued at $20,273,039,000 after buying an additional 385,204 shares during the last quarter. Geode Capital Management LLC increased its stake in Caterpillar by 0.9% in 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 during 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 worth $5,438,408,000 after buying an additional 54,069 shares in the last quarter. Finally, Bank of America Corp DE boosted its stake in shares of 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 worth $3,860,457,000 after buying an additional 928,974 shares during the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently commented on the company. Robert W. Baird set a $970.00 price target on Caterpillar in a research report on Wednesday, August 5th. Argus boosted their price objective on Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Wells Fargo & Company upped their price objective on Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research note on Tuesday, June 23rd. HSBC raised their target price on Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. Finally, DA Davidson lifted their target price on Caterpillar from $845.00 to $882.00 and gave the stock a "neutral" rating in a research note on Thursday, August 6th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $995.52.

Caterpillar Trading Up 0.3%

NYSE:CAT opened at $856.82 on Friday. Caterpillar Inc. has a 12 month low of $405.46 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. The firm's 50 day moving average is $915.09 and its 200 day moving average is $826.53. The stock has a market capitalization of $393.86 billion, a PE ratio of 36.87, a price-to-earnings-growth ratio of 1.53 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 for the quarter, beating 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 business had revenue of $20.54 billion during the quarter, compared to analyst estimates of $19.34 billion. During the same period in the prior year, the company earned $4.72 earnings per share. Caterpillar's revenue was up 23.7% compared to the same quarter last year. Sell-side analysts expect that Caterpillar Inc. will post 26.56 earnings per share for the current year.

Caterpillar Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be paid a dividend of $1.63 per share. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's dividend payout ratio is currently 28.06%.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar ended the second quarter with a record $72 billion backlog, signaling sustained demand for heavy equipment and supporting the company’s upgraded 2026 sales outlook. Growth is reportedly broad-based across major business segments. CAT Ends Q2 With Record Backlog: Is Demand Momentum Here to Stay?
• Positive Sentiment: Zacks Research upgraded CAT from “hold” to “strong-buy,” adding to the favorable analyst sentiment surrounding the shares. The company’s average brokerage recommendation is also equivalent to “buy.” Zacks Research rating
• Positive Sentiment: The company’s latest quarterly results provide fundamental support: Caterpillar reported revenue of $20.54 billion, up 23.7% year over year, and earnings of $8.17 per share, well above consensus expectations.
• Neutral Sentiment: Analysts remain cautiously optimistic. Caterpillar has outperformed the broader market over the past year, but consensus views already anticipate that the recent revenue boom will moderate. Do Wall Street Analysts Like Caterpillar Stock?
• Negative Sentiment: One analysis argues that Caterpillar’s elevated valuation will depend increasingly on margin improvement rather than continued backlog growth. If revenue growth fades without stronger profitability, the stock’s valuation could remain difficult to justify. Caterpillar’s Falling Multiple Rests On Margin, Not Its Backlog
• Negative Sentiment: The bullish brokerage consensus may be less informative because sell-side analysts often issue overly optimistic recommendations. Investors may therefore focus more on execution, margins and backlog conversion than on the average rating alone. Brokers Suggest Investing in Caterpillar

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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