Caterpillar Inc. $CAT Shares Purchased by Valeo Financial Advisors LLC

Key Points

• Valeo Financial Advisors increased its Caterpillar position by 50.2% in the second quarter, holding 33,191 shares worth approximately $35.34 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported strong quarterly results, with EPS of $8.17 and revenue of $20.54 billion, exceeding analyst expectations and growing 23.7% year over year. AI data-center infrastructure demand is emerging as an important growth catalyst.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and a $995.52 price target, although insiders sold $32.34 million of shares recently and the stock’s valuation—about 36 times earnings—raises the risk of profit-taking.

Valeo Financial Advisors LLC grew its position in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 50.2% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 33,191 shares of the industrial products company's stock after buying an additional 11,087 shares during the period. Caterpillar comprises 0.7% of Valeo Financial Advisors LLC's portfolio, making the stock its 26th largest position. Valeo Financial Advisors LLC's holdings in Caterpillar were worth $35,340,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in CAT. Crumly & Associates Inc. bought a new stake in Caterpillar during the second quarter valued at $212,000. Gradient Investments LLC boosted its holdings in shares of Caterpillar by 19.0% in the 2nd quarter. Gradient Investments LLC now owns 1,874 shares of the industrial products company's stock valued at $1,996,000 after buying an additional 299 shares during the period. Quantum Financial Advisors LLC boosted its holdings in shares of Caterpillar by 4.4% in the 2nd quarter. Quantum Financial Advisors LLC now owns 1,736 shares of the industrial products company's stock valued at $1,849,000 after buying an additional 73 shares during the period. Sprinkle Financial Consultants LLC bought a new stake in shares of Caterpillar during the 2nd quarter valued at about $208,000. Finally, Chesley Taft & Associates LLC lifted its holdings in Caterpillar by 5.1% in the second quarter. Chesley Taft & Associates LLC now owns 2,484 shares of the industrial products company's stock worth $2,645,000 after acquiring an additional 121 shares during the last quarter. 70.98% of the stock is currently owned by institutional investors.

Insider Activity at Caterpillar

In other news, insider Denise C. Johnson sold 12,605 shares of Caterpillar stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the sale, the insider owned 49,825 shares of the company's stock, valued at approximately $45,236,615.75. The trade was a 20.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Anthony D. Fassino sold 16,283 shares of the business's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $916.80, for a total transaction of $14,928,254.40. Following the transaction, the insider owned 46,041 shares in the company, valued at $42,210,388.80. This represents a 26.13% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 35,444 shares of company stock worth $32,335,679 over the last quarter. Corporate insiders own 0.33% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently commented on CAT shares. Zacks Research lowered Caterpillar from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 14th. Sanford C. Bernstein restated a "market perform" rating and set a $1,002.00 price objective on shares of Caterpillar in a research report on Wednesday. Citigroup upped their price objective on Caterpillar from $1,020.00 to $1,100.00 and gave the stock a "buy" rating in a research note on Tuesday, July 14th. Jefferies Financial Group raised their target price on Caterpillar from $900.00 to $1,045.00 and gave the company a "buy" rating in a research note on Friday, May 1st. Finally, Wells Fargo & Company boosted their price target on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a report on Tuesday, June 23rd. Thirteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, Caterpillar currently has an average rating of "Moderate Buy" and a consensus price target of $995.52.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: AI data-center demand is emerging as a major growth driver. Caterpillar is expanding power-generation capacity to supply electricity for power-intensive hyperscale data centers. Jim Cramer highlighted the company’s generators as a key reason CAT has outperformed Deere, while other coverage described the AI infrastructure opportunity as still in its early stages. Jim Cramer Shares Key Reason Why Caterpillar’s Shares Are Higher Than Deere’s CAT Stock Alert: Caterpillar’s AI Infrastructure Boom Is Just Getting Started
• Positive Sentiment: A new hyperscaler infrastructure agreement reinforces the opportunity. Energy Vault announced a planned 1.25-gigawatt deployment of integrated power infrastructure for an AI data center, using Caterpillar generator sets through a power-generation engineering, procurement and construction partner. The agreement provides additional evidence that CAT’s energy products can benefit from data-center construction. Energy Vault Announces Strategic Agreement for Hyperscaler AI Data Center Infrastructure
• Positive Sentiment: Recent earnings and guidance remain powerful catalysts. Caterpillar reported quarterly EPS of $8.17 versus the $6.22 consensus and revenue of $20.54 billion versus expectations of $19.34 billion. Revenue increased 23.7% year over year, and the company raised its 2026 sales-growth outlook as AI-related construction demand continued. Caterpillar Lifts 2026 Sales Growth Forecast as AI Buildout Powers On
• Neutral Sentiment: Analyst sentiment is supportive but not uniformly aggressive: Caterpillar carries an average “Moderate Buy” rating, and Truist expects further upside. Coverage also notes CAT has outperformed industrial-products peers this year, although much of that optimism may already be reflected in the share price. Caterpillar Receives Moderate Buy Rating
• Negative Sentiment: Profit-taking and valuation are weighing on the stock. CAT has more than doubled from its 12-month low and trades at roughly 36 times earnings, leaving investors vulnerable to consolidation after the post-earnings surge. A pullback after the rally may therefore reflect high expectations rather than a new negative company announcement.

Caterpillar Stock Down 1.5%

Shares of NYSE:CAT opened at $844.52 on Friday. The stock's 50-day moving average is $921.04 and its 200 day moving average is $819.15. The company has a market cap of $388.20 billion, a PE ratio of 36.34, a P/E/G ratio of 1.55 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 0.81. Caterpillar Inc. has a 1 year low of $405.46 and a 1 year high of $1,073.46.

Caterpillar (NYSE:CAT - Get Free Report) last released 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 business had revenue of $20.54 billion during the quarter, compared to analysts' expectations of $19.34 billion. During the same quarter last year, the business posted $4.72 EPS. The business's revenue was up 23.7% on a year-over-year basis. Sell-side analysts anticipate that Caterpillar Inc. will post 26.3 EPS for the current year.

Caterpillar Increases Dividend

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

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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