Compass Financial Management LLC Makes New Investment in Caterpillar Inc. $CAT

Key Points

• Compass Financial Management acquired 6,752 Caterpillar shares worth approximately $6.16 million, making CAT its 27th-largest holding. Institutional investors collectively own 70.98% of Caterpillar.
• Caterpillar reported a strong quarter, with earnings of $8.17 per share and revenue of $20.54 billion, exceeding estimates while revenue increased 23.7% year over year. The company also raised its quarterly dividend to $1.63 per share.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and a $995.52 price target, although CEO Joseph Creed sold 32,401 shares and the stock’s elevated valuation may limit further upside.

Compass Financial Management LLC acquired a new stake 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 (SEC). The firm acquired 6,752 shares of the industrial products company's stock, valued at approximately $6,162,000. Caterpillar comprises about 0.7% of Compass Financial Management LLC's holdings, making the stock its 27th biggest holding.

A number of other hedge funds and other institutional investors also recently modified their holdings of the stock. BlackRock Inc. purchased a new position in shares of Caterpillar in the 2nd quarter valued at approximately $40,457,153,000. State Street Corp raised its holdings in 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 purchasing an additional 385,204 shares in the last quarter. Geode Capital Management LLC lifted its position in Caterpillar by 0.9% during 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 buying an additional 94,524 shares during the period. Fisher Asset Management LLC boosted its holdings in shares of 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 buying an additional 54,069 shares in the last quarter. Finally, Bank of America Corp DE grew its position 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 worth $3,860,457,000 after buying an additional 928,974 shares during the period. Institutional investors own 70.98% of the company's stock.

Insider Activity

In related news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction on Friday, August 28th. The stock was sold at an average price of $808.98, for a total value of $26,211,760.98. Following the completion of the sale, the chief executive officer owned 34,555 shares of the company's stock, valued at $27,954,303.90. The trade was a 48.39% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.33% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Robert W. Baird set a $970.00 price target on shares of Caterpillar in a research report on Wednesday, August 5th. Truist Financial set a $980.00 target price on shares of Caterpillar in a research note on Wednesday, August 5th. Evercore reiterated an "outperform" rating and set a $1,103.00 target price on shares of Caterpillar in a report on Monday, May 11th. Sanford C. Bernstein reissued a "market perform" rating and issued a $1,002.00 price target on shares of Caterpillar in a research report on Wednesday, August 5th. Finally, Citigroup upped their price target 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. One 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. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $995.52.

Caterpillar Stock Up 1.7%

Caterpillar stock opened at $813.51 on Friday. 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 Inc. has a 12 month low of $416.44 and a 12 month high of $1,073.46. 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 stock has a fifty day simple moving average of $872.52 and a two-hundred day simple moving average of $838.46.

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, 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 company had revenue of $20.54 billion during the quarter, compared to the consensus estimate of $19.34 billion. During the same period last year, the company earned $4.72 EPS. Caterpillar's revenue for the quarter was up 23.7% on a year-over-year basis. Equities analysts predict that Caterpillar Inc. will post 27.34 EPS for the current fiscal year.

Caterpillar Increases Dividend

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

Trending Headlines about Caterpillar

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 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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