Canada Post Corp Registered Pension Plan Trims Position in Caterpillar Inc. $CAT

Key Points

• Canada Post’s pension plan cut its Caterpillar stake by 16% in the second quarter, selling 4,035 shares and retaining 21,147 shares valued at approximately $22.5 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported a strong quarter, with revenue rising 23.7% year over year to $20.54 billion and earnings of $8.17 per share, substantially exceeding analyst expectations.
• The company raised its quarterly dividend to $1.63 per share, while analysts maintain a “Moderate Buy” consensus with an average price target of $995.52; however, elevated valuation and the need for further margin improvement remain risks.

Canada Post Corp Registered Pension Plan trimmed its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 16.0% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 21,147 shares of the industrial products company's stock after selling 4,035 shares during the period. Canada Post Corp Registered Pension Plan's holdings in Caterpillar were worth $22,519,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of CAT. Diamant Asset Management Inc. boosted its position in Caterpillar by 68,427.2% during the 1st quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock valued at $2,224,992,000 after acquiring an additional 3,136,020 shares in the last quarter. Capital International Investors bought a new position in shares of Caterpillar in the 4th quarter worth approximately $1,225,317,000. Northwestern Mutual Wealth Management Co. raised its position in shares of Caterpillar by 573.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company's stock worth $861,947,000 after acquiring an additional 1,281,087 shares in the last quarter. Bank of America Corp DE lifted 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 valued at $3,860,457,000 after purchasing an additional 928,974 shares during the period. Finally, Cynosure Group LLC boosted its position in shares of Caterpillar by 8,359.6% during the fourth quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company's stock valued at $294,314,000 after purchasing an additional 507,681 shares in the last quarter. Hedge funds and other institutional investors own 70.98% of the company's stock.

Caterpillar Stock Up 0.3%

CAT stock opened at $856.82 on Friday. The stock has a market capitalization of $393.86 billion, a P/E ratio of 36.87, a P/E/G ratio of 1.53 and a beta of 1.60. 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 1-year low of $405.46 and a 1-year high of $1,073.46. The business has a fifty day moving average price of $915.09 and a 200-day moving average price of $826.53.

Caterpillar (NYSE:CAT - Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 EPS 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 company had revenue of $20.54 billion for the quarter, compared to analysts' expectations of $19.34 billion. During the same period last year, the firm posted $4.72 earnings per share. Caterpillar's revenue was up 23.7% compared to the same quarter last year. Equities analysts forecast that Caterpillar Inc. will post 26.56 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

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

Trending Headlines about 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

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on CAT shares. HSBC upped their target price on shares of Caterpillar from $850.00 to $1,100.00 in a research report on Tuesday, May 5th. Argus lifted their price target on shares of Caterpillar from $820.00 to $990.00 and gave the company a "buy" rating in a research report on Tuesday, May 5th. Evercore restated an "outperform" rating and issued a $1,103.00 price objective on shares of Caterpillar in a report on Monday, May 11th. Jefferies Financial Group lifted their target price on shares of Caterpillar from $900.00 to $1,045.00 and gave the company a "buy" rating in a report on Friday, May 1st. Finally, Erste Group Bank cut Caterpillar from a "buy" rating to a "hold" rating in a research report on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $995.52.

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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