Candriam S.C.A. Grows Position in Caterpillar Inc. $CAT

Key Points

• Candriam S.C.A. increased its Caterpillar stake by 6.8% in the first quarter, buying 2,474 additional shares and bringing its total holding to 38,971 shares worth about $27.6 million.
• Wall Street remains generally bullish on CAT, with a consensus Moderate Buy rating and an average price target of $970.81, while several firms recently raised their targets. Analyst commentary also points to Caterpillar benefiting from AI-related data center construction demand.
• Caterpillar reported strong quarterly results, beating earnings and revenue estimates, and also raised its dividend to $1.63 per share from $1.51. However, insiders have been selling shares, and some recent commentary has raised concerns about valuation and momentum.

Candriam S.C.A. raised its position in Caterpillar Inc. (NYSE:CAT - Free Report) by 6.8% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 38,971 shares of the industrial products company's stock after buying an additional 2,474 shares during the quarter. Candriam S.C.A.'s holdings in Caterpillar were worth $27,609,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also modified their holdings of CAT. Advisory Resource Group raised its position in Caterpillar by 0.8% in the 4th quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company's stock valued at $935,000 after purchasing an additional 13 shares during the last quarter. Sunbeam Capital Management LLC grew its position in Caterpillar by 1.1% during the 1st quarter. Sunbeam Capital Management LLC now owns 1,164 shares of the industrial products company's stock worth $825,000 after purchasing an additional 13 shares during the last quarter. Brandywine Oak Private Wealth LLC increased its stake in Caterpillar by 2.6% in the first quarter. Brandywine Oak Private Wealth LLC now owns 506 shares of the industrial products company's stock valued at $358,000 after purchasing an additional 13 shares during the period. Sylvest Advisors LLC boosted its stake in shares of Caterpillar by 3.6% during the first quarter. Sylvest Advisors LLC now owns 377 shares of the industrial products company's stock worth $267,000 after buying an additional 13 shares during the period. Finally, Invst LLC grew its holdings in shares of Caterpillar by 1.9% during the fourth quarter. Invst LLC now owns 753 shares of the industrial products company's stock worth $431,000 after buying an additional 14 shares during the last quarter. 70.98% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on CAT. Weiss Ratings reissued a "buy (b-)" rating on shares of Caterpillar in a report on Friday, May 8th. Oppenheimer set a $980.00 price objective on shares of Caterpillar and gave the company an "outperform" rating in a research note on Friday, May 1st. Argus lifted their target price on shares of Caterpillar from $820.00 to $990.00 and gave the company a "buy" rating in a report on Tuesday, May 5th. Wells Fargo & Company increased their price target on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a report on Tuesday, June 23rd. Finally, Daiwa Securities Group raised their price target on Caterpillar from $790.00 to $900.00 and gave the company a "neutral" rating in a report on Friday, May 1st. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $970.81.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar is being highlighted as a way to gain exposure to the AI buildout, especially through demand tied to data center construction, which is helping bolster investor optimism. These Dividend Paying Stocks Offer Strong Exposure to AI Trends
• Positive Sentiment: Analyst/commentary pieces continue to frame Caterpillar as a stock with strong momentum and relative outperformance, supporting the bullish case for CAT. CAT Outperforms NVDA & Tech Sector, AI Data Center Demand Powers Growth
• Positive Sentiment: News that Caterpillar is opening an engineering design centre adds to the company’s investment and expansion story, which can be supportive for long-term growth expectations. Caterpillar Inc. opens engineering design centre
• Positive Sentiment: Reports of a multimillion-dollar global headquarters expansion in Las Colinas suggest continued capital investment and confidence in the business outlook. Caterpillar digs into new $34M HQ in Las Colinas
• Neutral Sentiment: Market commentary notes that Caterpillar remains a popular industrial stock to watch, but these list-style articles do not provide a clear new catalyst. Industrial Stocks To Consider - July 9th
• Neutral Sentiment: Another feature discusses Caterpillar among “calls of the day,” indicating ongoing trader attention rather than a specific fundamental update. Calls of the day: AbbVie, Caterpillar, Marriott, Lamar Advertising and PepsiCo
• Negative Sentiment: Some coverage says CAT has dipped while the broader market rose, and other commentary warns the stock may be losing momentum as investors weigh valuation, tariffs, and execution risks. Caterpillar (CAT) Stock Dips While Market Gains: Key Facts
• Negative Sentiment: One bearish note suggests the AI rally may be fading, with valuation concerns making investors more cautious about further upside. CAT Stock Heads For Second Weekly Loss: Is Caterpillar's AI Rally Fading?

Insider Buying and Selling at Caterpillar

In other news, CAO William E. Schaupp sold 360 shares of Caterpillar stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $906.00, for a total transaction of $326,160.00. Following the completion of the sale, the chief accounting officer directly owned 530 shares in the company, valued at $480,180. The trade was a 40.45% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Andrew R. J. Bonfield sold 15,674 shares of the business's stock in a transaction that occurred on Wednesday, May 6th. The shares were sold at an average price of $918.71, for a total transaction of $14,399,860.54. Following the completion of the transaction, the chief financial officer directly owned 52,935 shares of the company's stock, valued at approximately $48,631,913.85. This represents a 22.85% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 95,773 shares of company stock valued at $87,642,635. 0.33% of the stock is owned by company insiders.

Caterpillar Price Performance

Shares of NYSE:CAT traded up $14.03 during trading on Friday, hitting $952.42. 1,957,575 shares of the stock were exchanged, compared to its average volume of 3,658,716. The company has a market cap of $438.68 billion, a PE ratio of 47.41, a P/E/G ratio of 1.88 and a beta of 1.57. The company has a current ratio of 1.35, a quick ratio of 0.81 and a debt-to-equity ratio of 1.64. The company has a fifty day moving average price of $930.83 and a two-hundred day moving average price of $782.09. Caterpillar Inc. has a 12-month low of $401.70 and a 12-month high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last posted its earnings results on Thursday, April 30th. The industrial products company reported $5.54 EPS for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. The company had revenue of $17.41 billion for the quarter, compared to the consensus estimate 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% compared to the same quarter last year. During the same period in the previous year, the business earned $4.25 earnings per share. On average, analysts forecast that Caterpillar Inc. will post 24.71 EPS for the current year.

Caterpillar Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Monday, July 20th will be given a $1.63 dividend. This is an increase from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.7%. The ex-dividend date is Monday, July 20th. Caterpillar's dividend payout ratio (DPR) is currently 30.06%.

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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