California State Teachers Retirement System Grows Holdings in Caterpillar Inc. $CAT

Key Points

• CalSTRS reported a dramatic increase in its Caterpillar position during the second quarter, adding more than 746.6 million shares. Institutional investors collectively own 70.98% of CAT, though the reported CalSTRS ownership figures appear unusually large.
• Analyst sentiment remains positive: Caterpillar has a “Moderate Buy” consensus rating and an average price target of $994.17, with several firms recently raising their targets.
• Caterpillar exceeded quarterly expectations with $8.17 in EPS and $20.54 billion in revenue, but investors are monitoring CEO insider selling and the stock’s premium valuation after its strong rally.

California State Teachers Retirement System boosted its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 105,696.1% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 747,331,911 shares of the industrial products company's stock after acquiring an additional 746,625,522 shares during the period. Caterpillar accounts for about 2.2% of California State Teachers Retirement System's investment portfolio, making the stock its 14th largest position. California State Teachers Retirement System owned about 162.58% of Caterpillar worth $795,833,752,000 at the end of the most recent reporting period.

A number of other hedge funds have also modified their holdings of the company. Tanager Wealth Management LLP increased its stake in shares of Caterpillar by 8.6% in the second quarter. Tanager Wealth Management LLP now owns 553 shares of the industrial products company's stock worth $589,000 after purchasing an additional 44 shares in the last quarter. Washington Trust Advisors Inc. raised its stake in Caterpillar by 0.6% during the 2nd quarter. Washington Trust Advisors Inc. now owns 2,663 shares of the industrial products company's stock valued at $2,836,000 after purchasing an additional 17 shares during the period. Ameritas Advisory Services LLC lifted its holdings in Caterpillar by 93.0% in the 2nd quarter. Ameritas Advisory Services LLC now owns 25,083 shares of the industrial products company's stock worth $26,710,000 after purchasing an additional 12,085 shares in the last quarter. Henrickson Nauta Wealth Advisors Inc. bought a new position in Caterpillar in the 2nd quarter worth approximately $227,000. Finally, Wedmont Private Capital grew its holdings in Caterpillar by 17.6% during the 2nd quarter. Wedmont Private Capital now owns 10,012 shares of the industrial products company's stock valued at $10,662,000 after buying an additional 1,500 shares in the last quarter. 70.98% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently commented on the stock. Freedom Broker raised shares of Caterpillar from a "hold" rating to a "buy" rating and set a $980.00 target price on the stock in a report on Thursday. UBS Group boosted their target price on Caterpillar from $900.00 to $925.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. JPMorgan Chase & Co. increased their price target on Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a research note on Wednesday, June 17th. Barclays lifted their price objective on Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 6th. Finally, DA Davidson increased their target price on Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a research report on Thursday, August 6th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and eleven have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $994.17.

Insider Activity at Caterpillar

In other news, CEO Joseph E. Creed sold 32,401 shares of the business's 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 transaction, the chief executive officer 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 transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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

Caterpillar Stock Down 0.0%

Shares of NYSE:CAT opened at $818.48 on Monday. The company has a market cap of $376.23 billion, a price-to-earnings ratio of 35.22, a PEG ratio of 1.42 and a beta of 1.60. Caterpillar Inc. has a 12 month low of $427.75 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 company has a 50-day moving average price of $853.58 and a 200 day moving average price of $840.90.

Caterpillar (NYSE:CAT - Get Free Report) last issued 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. 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 period in the previous year, the firm posted $4.72 earnings per share. The firm's revenue for the quarter was up 23.7% on a year-over-year basis. As a group, equities research analysts predict that Caterpillar Inc. will post 27.37 earnings per share for the current year.

Caterpillar 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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