Capital Square LLC Makes New $1.39 Million Investment in Caterpillar Inc. $CAT

Key Points

• Capital Square LLC initiated a $1.39 million position in Caterpillar during the second quarter, buying 1,460 shares. Institutional investors and hedge funds collectively own 70.98% of CAT.
• Caterpillar reported a strong quarter, with earnings of $8.17 per share versus $6.22 expected and revenue up 23.7% year over year to $20.54 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $995.52.
• The company raised its quarterly dividend to $1.63 per share, but valuation and insider selling remain considerations; CEO Joseph Creed sold approximately $26.2 million worth of shares, reducing his direct stake by 48.39%.

Capital Square LLC purchased a new position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor purchased 1,460 shares of the industrial products company's stock, valued at approximately $1,391,000.

Several other hedge funds and other institutional investors have also recently made changes to their positions in the stock. BlackRock Inc. purchased a new position in Caterpillar in the second quarter valued at about $40,457,153,000. Diamant Asset Management Inc. boosted its stake in shares of 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 worth $2,224,992,000 after acquiring an additional 3,136,020 shares in the last quarter. Bank of New York Mellon Corp acquired a new stake in shares of Caterpillar in the 2nd quarter worth approximately $3,192,710,000. Ascentis Wealth Management LLC increased its stake in Caterpillar by 110,539.0% in the 2nd quarter. Ascentis Wealth Management LLC now owns 2,518,143 shares of the industrial products company's stock valued at $2,711,772,000 after purchasing an additional 2,515,867 shares in the last quarter. Finally, Capital International Investors acquired a new position in Caterpillar during the fourth quarter worth $1,225,317,000. Institutional investors and hedge funds own 70.98% of the company's stock.

Analyst Ratings Changes

Several analysts have weighed in on CAT shares. Zacks Research raised Caterpillar from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 12th. UBS Group boosted their price objective on shares of Caterpillar from $900.00 to $925.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 5th. Evercore reissued an "outperform" rating and issued a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Citigroup raised their target price on shares of Caterpillar from $1,020.00 to $1,100.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Finally, DA Davidson upped their price target on shares of Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat.com, Caterpillar presently has an average rating of "Moderate Buy" and a consensus target price of $995.52.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: FieldAI partnership supports the automation outlook. Caterpillar is combining its construction-equipment expertise with FieldAI’s physical-AI technology to develop autonomous capabilities for machines and improve safety, productivity and visibility at jobsites. The initiative could create longer-term revenue opportunities in equipment, software and services. Caterpillar partners with FieldAI for equipment automation
• Positive Sentiment: Analyst and quantitative sentiment has improved. Zacks upgraded CAT to Rank #1, or “Strong Buy,” citing rising optimism about earnings prospects. Erste Group Bank also raised its fiscal 2026 EPS forecast, adding to the constructive outlook. Caterpillar upgraded to Strong Buy
• Positive Sentiment: AI infrastructure is boosting Power & Energy demand. Caterpillar’s retail sales to power-generation users reportedly surged 72% year over year in the second quarter, as data centers and generative-AI infrastructure increase demand for reliable power. This gives CAT an additional growth driver beyond traditional construction and mining markets. Can CAT Stock Compound Its Way Higher?
• Neutral Sentiment: Recent earnings performance remains a strength, but expectations are elevated. Caterpillar’s latest quarterly results exceeded consensus estimates for both earnings and revenue, with revenue up 23.7% year over year. A sector review described CAT as the strongest heavy-machinery performer, though investors are increasingly pricing in continued execution.
• Negative Sentiment: Valuation and performance concerns could limit upside. Commentary notes that CAT has outperformed peers in the stock market more than in underlying business performance, leaving the shares dependent on future growth. The stock has also declined since its latest earnings report, while a report tied the recent weakness to insider selling. CAT Has Left Its Peers Behind. Or Has It?

Caterpillar Stock Up 1.7%

Shares of NYSE:CAT opened at $813.51 on Friday. Caterpillar Inc. has a 12-month low of $416.44 and a 12-month high of $1,073.46. The stock's 50-day moving average price is $872.52 and its two-hundred day moving average price is $838.46. The firm has a market cap of $373.95 billion, a price-to-earnings ratio of 35.00, a PEG ratio of 1.39 and a beta of 1.60. The company has a current ratio of 1.37, a quick ratio of 0.85 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. The company had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. Caterpillar's revenue was up 23.7% on a year-over-year basis. During the same quarter last year, the firm posted $4.72 earnings per share. On average, research analysts forecast that Caterpillar Inc. will post 27.34 EPS for the current year.

Caterpillar Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th were given a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a yield of 0.8%. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. The ex-dividend date of this dividend was Monday, July 20th. Caterpillar's dividend payout ratio is presently 28.06%.

Insider Buying and Selling at Caterpillar

In related news, CEO Joseph E. Creed sold 32,401 shares of the company's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the sale, the chief executive officer directly owned 34,555 shares of the company's stock, valued at approximately $27,954,303.90. This represents a 48.39% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.33% of the company's stock.

About Caterpillar

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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