Caterpillar Inc. $CAT Shares Sold by DMKC Advisory Services LLC

Key Points

• DMKC Advisory Services LLC cut its Caterpillar stake by 92.3% in the second quarter, selling 10,035 shares and retaining 833 shares worth approximately $887,000. Institutional investors still own nearly 71% of CAT.
• Caterpillar reported a record second quarter, with revenue rising 23.7% year over year to $20.54 billion and adjusted EPS of $8.17, well above estimates. Management raised its 2026 sales-growth outlook to the mid-to-high teens, supported by a backlog exceeding $72 billion and strong power-generation demand tied to data centers.
• Analysts maintain a generally positive view, with a consensus “Moderate Buy” rating and a $989 target price, but CAT’s elevated valuation—about 37.5 times earnings—creates downside risk if AI-related demand or growth slows. The company also increased its quarterly dividend to $1.63 per share.

DMKC Advisory Services LLC trimmed its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 92.3% during the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 833 shares of the industrial products company's stock after selling 10,035 shares during the period. DMKC Advisory Services LLC's holdings in Caterpillar were worth $887,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of CAT. Vanguard Group Inc. grew its stake in shares of Caterpillar by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 46,385,185 shares of the industrial products company's stock valued at $26,572,681,000 after acquiring an additional 442,164 shares in the last quarter. State Street Corp lifted its stake in shares of Caterpillar by 1.1% in the fourth quarter. State Street Corp now owns 35,388,550 shares of the industrial products company's stock worth $20,273,039,000 after acquiring an additional 385,204 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Caterpillar by 0.9% in the fourth quarter. Geode Capital Management LLC now owns 10,610,182 shares of the industrial products company's stock valued at $6,072,572,000 after purchasing an additional 94,524 shares during the last quarter. Fisher Asset Management LLC grew its stake in Caterpillar by 0.6% during the 4th quarter. Fisher Asset Management LLC now owns 9,493,266 shares of the industrial products company's stock valued at $5,438,408,000 after purchasing an additional 54,069 shares in the last quarter. Finally, Bank of America Corp DE increased its holdings in Caterpillar by 16.0% during the 4th quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock worth $3,860,457,000 after purchasing an additional 928,974 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

CAT has been the subject of several research analyst reports. JPMorgan Chase & Co. increased their target price on Caterpillar from $1,125.00 to $1,165.00 and gave the company an "overweight" rating in a research note on Wednesday, June 17th. HSBC upped their price target on shares of Caterpillar from $850.00 to $1,100.00 in a report on Tuesday, May 5th. Bank of America raised their price objective on shares of Caterpillar from $930.00 to $989.00 and gave the stock a "buy" rating in a report on Friday, May 1st. Argus boosted their target price on shares of Caterpillar from $820.00 to $990.00 and gave the stock a "buy" rating in a research report on Tuesday, May 5th. Finally, Morgan Stanley set a $915.00 target price on shares of Caterpillar and gave the company an "equal weight" rating in a research note on Friday, May 1st. Thirteen equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $989.00.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Record results exceeded expectations: Second-quarter sales and revenue rose 24% year over year to a record $20.5 billion, while adjusted earnings reached $8.17 per share versus analyst estimates near $6.22. The quarter was Caterpillar’s first with revenue above $20 billion. Caterpillar Reports Second-Quarter 2026 Results
• Positive Sentiment: AI infrastructure is driving demand: Caterpillar’s power and energy segment generated approximately $8.2 billion in sales and more segment profit than construction equipment, benefiting from data-center construction and demand for power-generation equipment. Caterpillar Now Makes Almost as Much Selling Power as It Does Selling Construction Equipment
• Positive Sentiment: Outlook and backlog improved: Management raised its 2026 sales-growth forecast to the mid-to-high teens from the prior low-double-digit range. A record backlog above $72 billion, stronger demand across segments and additional power capacity point to continued second-half growth. CAT Q2 Earnings Call Focuses on Backlog and Capacity Growth
• Positive Sentiment: Shareholder returns remain supportive: Caterpillar deployed $2.2 billion for share repurchases and dividends during the quarter. Truist also raised its price target to $1,225 and maintained a Buy rating. Truist price target update
• Neutral Sentiment: The strong report initially prompted a major rally and helped lift the Dow, but the shares have since surrendered part of that advance as investors assess whether AI-related demand can remain durable.
• Negative Sentiment: Valuation risk is significant: CAT trades at more than 30 times forward earnings, with a free-cash-flow yield of roughly 3.2%. That leaves limited margin for execution mistakes or a slowdown in data-center spending, increasing the risk of medium-term mean reversion. Caterpillar: You Can’t Avoid the Cycle, But You Can Price It

Insider Activity at Caterpillar

In related news, insider Denise C. Johnson sold 12,605 shares of the stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total value of $11,444,205.55. Following the completion of the transaction, the insider directly owned 49,825 shares of the company's stock, valued at $45,236,615.75. This represents a 20.19% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, insider Anthony D. Fassino sold 16,283 shares of Caterpillar stock in a transaction on Monday, May 11th. The shares were sold at an average price of $916.80, for a total value of $14,928,254.40. Following the sale, the insider directly owned 46,041 shares in the company, valued at $42,210,388.80. The trade was a 26.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 35,444 shares of company stock worth $32,335,679 in the last ninety days. 0.33% of the stock is owned by insiders.

Caterpillar Trading Down 0.5%

NYSE CAT opened at $872.02 on Thursday. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.81 and a current ratio of 1.37. Caterpillar Inc. has a one year low of $405.46 and a one year high of $1,073.46. The company has a 50-day simple moving average of $922.16 and a 200-day simple moving average of $817.47. The firm has a market capitalization of $401.64 billion, a PE ratio of 37.52, a price-to-earnings-growth ratio of 1.72 and a beta of 1.60.

Caterpillar (NYSE:CAT - Get Free Report) last issued its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The firm had revenue of $20.54 billion for the quarter, compared to analysts' expectations of $19.34 billion. During the same quarter last year, the company posted $4.72 earnings per share. Caterpillar's revenue was up 23.7% on a year-over-year basis. On average, equities analysts forecast that Caterpillar Inc. will post 24.87 earnings per share for the current year.

Caterpillar Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Monday, July 20th will be paid a $1.63 dividend. The ex-dividend date is Monday, July 20th. This is a positive change from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 dividend on an annualized basis and a yield of 0.7%. Caterpillar's dividend payout ratio (DPR) is 32.45%.

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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