Callahan Advisors LLC Has $29.14 Million Stock Position in Caterpillar Inc. $CAT

Key Points

• Callahan Advisors reduced its Caterpillar stake by 6.5% in the fourth quarter, but still held 50,869 shares valued at about $29.14 million. Caterpillar remained its 11th-largest holding and made up roughly 2.4% of the portfolio.
• Wall Street sentiment is increasingly positive, with several firms raising Caterpillar price targets and earnings forecasts. Analysts now have a consensus Moderate Buy rating and an average price target of $923.14.
• Caterpillar delivered strong recent results, beating earnings and revenue estimates last quarter with EPS of $5.54 and revenue of $17.42 billion, both up sharply year over year. The company also paid a quarterly dividend of $1.51 per share and saw notable insider share sales during the period.

Callahan Advisors LLC decreased its stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 6.5% during the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 50,869 shares of the industrial products company's stock after selling 3,516 shares during the quarter. Caterpillar comprises about 2.4% of Callahan Advisors LLC's portfolio, making the stock its 11th biggest holding. Callahan Advisors LLC's holdings in Caterpillar were worth $29,141,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also recently made changes to their positions in the company. Torren Management LLC acquired a new position in shares of Caterpillar during the 4th quarter worth approximately $27,000. IFS Advisors LLC acquired a new position in shares of Caterpillar during the 4th quarter worth approximately $31,000. Rialto Wealth Management LLC increased its position in shares of Caterpillar by 47.4% during the 4th quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company's stock worth $32,000 after purchasing an additional 18 shares during the last quarter. Noble Wealth Management PBC boosted its stake in shares of Caterpillar by 140.0% during the 4th quarter. Noble Wealth Management PBC now owns 60 shares of the industrial products company's stock worth $34,000 after acquiring an additional 35 shares during the period. Finally, Key Capital Management INC bought a new position in shares of Caterpillar during the 4th quarter worth approximately $36,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Zacks Research raised multiple Caterpillar earnings forecasts across 2026, 2027 and 2028, signaling stronger expected profitability and supporting a higher valuation for the stock.
• Positive Sentiment: Analysts also increased Caterpillar’s long-term fair value and price targets, reflecting improving growth expectations and suggesting Wall Street sees more upside than before.
• Positive Sentiment: Jim Cramer said Caterpillar is “integral to data center construction,” highlighting a new demand driver tied to AI infrastructure buildout, which could broaden the company’s growth narrative. Article Title
• Positive Sentiment: The company’s “Building Beyond” internship coverage spotlighted Caterpillar’s use of new AI, reinforcing investor interest in its technology and workforce development efforts. Article Title
• Neutral Sentiment: Caterpillar was mentioned in several stock-screening and watchlist articles for industrial, mining, and construction names, which adds visibility but does not by itself change fundamentals.
• Negative Sentiment: One story noted concerns around workforce and tariff issues at a Caterpillar-related facility, which could be a mild headwind if trade or labor costs intensify. Article Title

Wall Street Analyst Weigh In

Several brokerages have recently commented on CAT. DA Davidson lifted their target price on Caterpillar from $650.00 to $845.00 and gave the stock a "neutral" rating in a research note on Monday, May 4th. Rothschild & Co Redburn lifted their target price on Caterpillar from $700.00 to $950.00 and gave the stock a "neutral" rating in a research note on Thursday, May 14th. Evercore reiterated an "outperform" rating and set a $1,103.00 target price on shares of Caterpillar in a research note on Monday, May 11th. Argus lifted their target price on Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a research note on Tuesday, May 5th. Finally, Jefferies Financial Group lifted their target price on Caterpillar from $900.00 to $1,045.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Sixteen research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $923.14.

Caterpillar Stock Performance

CAT opened at $873.91 on Thursday. The firm has a market cap of $402.52 billion, a P/E ratio of 43.50, a price-to-earnings-growth ratio of 1.70 and a beta of 1.63. Caterpillar Inc. has a 52-week low of $336.24 and a 52-week high of $931.35. The company has a debt-to-equity ratio of 1.64, a quick ratio of 0.81 and a current ratio of 1.35. The business's fifty day moving average is $785.30 and its 200-day moving average is $687.48.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.65 by $0.89. The company had revenue of $17.42 billion for the quarter, compared to analyst estimates of $16.53 billion. Caterpillar had a return on equity of 48.21% and a net margin of 13.33%.Caterpillar's quarterly revenue was up 22.2% on a year-over-year basis. During the same period in the prior year, the firm posted $4.25 EPS. Sell-side analysts expect that Caterpillar Inc. will post 24.67 EPS for the current fiscal year.

Caterpillar Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, May 19th. Stockholders of record on Monday, April 20th were issued a dividend of $1.51 per share. This represents a $6.04 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, April 20th. Caterpillar's dividend payout ratio is 30.06%.

Insider Activity at Caterpillar

In related news, insider Lange Bob De sold 24,222 shares of the firm's stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $922.92, for a total value of $22,354,968.24. Following the sale, the insider directly owned 86,029 shares of the company's stock, valued at $79,397,884.68. This trade represents a 21.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Denise C. Johnson sold 12,605 shares of the firm's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the sale, the insider directly owned 49,825 shares in the company, valued at $45,236,615.75. This trade represents a 20.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 100,551 shares of company stock worth $91,170,351 in the last quarter. 0.33% of the stock is currently owned by corporate insiders.

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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