Connor Clark & Lunn Investment Management Ltd. Acquires New Shares in Caterpillar Inc. $CAT

Key Points

• Connor Clark & Lunn Investment Management acquired 42,119 Caterpillar shares worth approximately $44.9 million. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported stronger-than-expected quarterly results, with EPS of $8.17 and revenue of $20.54 billion, up 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 an average price target of $995.52, though CEO Joseph Creed’s sale of 32,401 shares and the stock’s elevated valuation may temper upside.

Connor Clark & Lunn Investment Management Ltd. purchased a new stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund purchased 42,119 shares of the industrial products company's stock, valued at approximately $44,853,000.

A number of other institutional investors have also made changes to their positions in CAT. Pacific Point Advisors LLC acquired a new stake in shares of Caterpillar in the fourth quarter worth $579,000. Brighton Jones LLC increased its stake in Caterpillar by 51.5% during the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock valued at $2,688,000 after acquiring an additional 2,519 shares during the period. United Bank raised its stake in shares of Caterpillar by 108.5% in the second quarter. United Bank now owns 4,083 shares of the industrial products company's stock valued at $1,585,000 after purchasing an additional 2,125 shares in the last quarter. Schnieders Capital Management LLC. lifted its holdings in shares of Caterpillar by 3.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock worth $3,551,000 after acquiring an additional 347 shares during the period. Finally, Alliancebernstein L.P. lifted its stake in Caterpillar by 6.5% during the second quarter. Alliancebernstein L.P. now owns 572,165 shares of the industrial products company's stock worth $222,120,000 after purchasing an additional 34,846 shares during the period. 70.98% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Rothschild & Co Redburn boosted their target price on shares of Caterpillar from $700.00 to $950.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. Erste Group Bank lowered Caterpillar from a "buy" rating to a "hold" rating in a research note on Monday, July 27th. Oppenheimer reissued an "outperform" rating and set a $1,118.00 price objective on shares of Caterpillar in a report on Tuesday, August 4th. Royal Bank Of Canada boosted their target price on shares of Caterpillar from $877.00 to $897.00 and gave the stock a "sector perform" rating in a research note on Wednesday, August 5th. Finally, DA Davidson increased their price target on shares of Caterpillar from $845.00 to $882.00 and gave the company a "neutral" rating in a research note on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $995.52.

Caterpillar Trading Up 1.7%

NYSE:CAT opened at $813.51 on Friday. The business's 50-day moving average price is $872.52 and its two-hundred day moving average price is $838.46. Caterpillar Inc. has a 1-year low of $416.44 and a 1-year high of $1,073.46. The firm has a market capitalization 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 announced 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. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. The company had revenue of $20.54 billion for the quarter, compared to analysts' expectations of $19.34 billion. During the same period last year, the firm posted $4.72 earnings per share. The business's quarterly revenue was up 23.7% compared to the same quarter last year. On average, equities analysts expect that Caterpillar Inc. will post 27.34 earnings per share for the current year.

Caterpillar Increases Dividend

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

Caterpillar News Summary

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?

Insider Buying and Selling at Caterpillar

In other news, CEO Joseph E. Creed sold 32,401 shares of Caterpillar stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $808.98, for a total value of $26,211,760.98. Following the sale, the chief executive officer directly owned 34,555 shares in the company, valued at $27,954,303.90. This trade represents a 48.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.33% of the stock is owned by corporate insiders.

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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