Cullinan Associates Inc. Lowers Position in Caterpillar Inc. $CAT

Key Points

• Cullinan Associates trimmed its Caterpillar stake by 9.7% in Q4, selling 3,236 shares and leaving it with 30,289 shares valued at about $17.35 million (roughly 1.2% of the fund and its 19th largest holding).
• Significant insider selling has occurred recently — Bob De Lange sold 22,656 shares at an average $720.11 and Denise C. Johnson sold 39,138 shares at $681.08, with insiders offloading 125,950 shares (≈$88.6M) in the past 90 days; corporate insiders now own 0.33% of the stock.
• Caterpillar beat Q1 estimates and raised guidance, citing a record backlog and rising AI/data-center driven demand for power equipment, which spurred analyst target increases and a MarketBeat consensus of "Moderate Buy" with a ~$767.77 price target.

Cullinan Associates Inc. cut its stake in Caterpillar Inc. (NYSE:CAT - Free Report) by 9.7% in the 4th quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 30,289 shares of the industrial products company's stock after selling 3,236 shares during the quarter. Caterpillar accounts for about 1.2% of Cullinan Associates Inc.'s portfolio, making the stock its 19th biggest position. Cullinan Associates Inc.'s holdings in Caterpillar were worth $17,352,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Torren Management LLC purchased a new stake in shares of Caterpillar in the fourth quarter worth approximately $27,000. Marquette Asset Management LLC lifted its holdings in Caterpillar by 1,060.0% during the third quarter. Marquette Asset Management LLC now owns 58 shares of the industrial products company's stock worth $28,000 after acquiring an additional 53 shares during the period. IFS Advisors LLC bought a new stake in Caterpillar during the fourth quarter worth $31,000. Joseph Group Capital Management bought a new stake in Caterpillar during the third quarter worth $32,000. Finally, Rialto Wealth Management LLC lifted its holdings in Caterpillar by 47.4% during the fourth quarter. Rialto Wealth Management LLC now owns 56 shares of the industrial products company's stock worth $32,000 after acquiring an additional 18 shares during the period. 70.98% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts recently commented on CAT shares. Daiwa Securities Group lifted their price target on Caterpillar from $640.00 to $790.00 in a report on Wednesday, February 25th. DA Davidson lifted their price target on Caterpillar from $569.00 to $650.00 and gave the stock a "neutral" rating in a report on Monday, February 2nd. Citigroup lifted their price target on Caterpillar from $785.00 to $905.00 and gave the stock a "buy" rating in a report on Monday, April 13th. Wall Street Zen lowered Caterpillar from a "buy" rating to a "hold" rating in a report on Saturday, February 21st. Finally, Wolfe Research lifted their price target on Caterpillar from $670.00 to $750.00 and gave the stock an "outperform" rating in a report on Tuesday, March 31st. Sixteen analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $767.77.

Insider Buying and Selling

In other news, insider Lange Bob De sold 22,656 shares of Caterpillar stock in a transaction on Friday, February 6th. The stock was sold at an average price of $720.11, for a total value of $16,314,812.16. Following the completion of the transaction, the insider directly owned 79,953 shares in the company, valued at approximately $57,574,954.83. The trade was a 22.08% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Denise C. Johnson sold 39,138 shares of Caterpillar stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $681.08, for a total value of $26,656,109.04. Following the completion of the transaction, the insider owned 43,350 shares of the company's stock, valued at approximately $29,524,818. This trade represents a 47.45% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 125,950 shares of company stock valued at $88,577,390 in the last 90 days. Corporate insiders own 0.33% of the company's stock.

Caterpillar Stock Performance

NYSE:CAT opened at $890.91 on Friday. The company has a debt-to-equity ratio of 1.44, a current ratio of 1.44 and a quick ratio of 0.94. The business has a fifty day simple moving average of $746.86 and a two-hundred day simple moving average of $655.04. Caterpillar Inc. has a 1 year low of $311.02 and a 1 year high of $896.98. The company has a market capitalization of $414.53 billion, a P/E ratio of 47.34, a P/E/G ratio of 1.87 and a beta of 1.52.

Caterpillar (NYSE:CAT - Get Free Report) last released its earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.65 by $0.89. Caterpillar had a return on equity of 45.76% and a net margin of 13.14%.The business had revenue of $17.42 billion during the quarter, compared to the consensus estimate of $16.53 billion. During the same period last year, the business posted $4.25 earnings per share. The business's revenue for the quarter was up 22.2% on a year-over-year basis. On average, analysts expect that Caterpillar Inc. will post 22.89 earnings per share for the current year.

Caterpillar Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, May 19th. Stockholders of record on Monday, April 20th will be given a $1.51 dividend. The ex-dividend date is Monday, April 20th. This represents a $6.04 annualized dividend and a dividend yield of 0.7%. Caterpillar's payout ratio is 32.09%.

Key Stories Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Q1 beat and raised outlook — CAT reported adjusted EPS and revenue well above estimates, drove a sizable year-over-year revenue gain and raised annual guidance on stronger demand for construction and power equipment. Caterpillar expects AI-driven demand for power, construction to fuel growth
• Positive Sentiment: Record backlog and AI-driven power demand — Management cited a record backlog and rising demand for power and energy equipment to support data centers (AI buildout), underpinning multi-year revenue visibility for the power segment. Caterpillar stock jumps on record backlog, boom in power and energy equipment for data centers
• Positive Sentiment: Strategic partnership for power assets — A framework agreement with PROPWR (ProPetro) to supply up to 2.1 GW of power generation capacity reinforces Caterpillar’s exposure to data-center and industrial power demand. That supports the company’s growth story beyond traditional construction equipment. ProPetro, Caterpillar Partner on Multi-Year Power Buildout Through 2032
• Positive Sentiment: Capital returns — CAT deployed $5.7 billion for share repurchases and dividends in Q1, a concrete driver of EPS accretion and shareholder value that supports the stock’s rally. Caterpillar Reports First-Quarter 2026 Results
• Positive Sentiment: Market reaction & analyst support — ETFs and broader market flows grabbed CAT exposure after the earnings-led rally; banks and some analysts have raised estimates/targets, reinforcing momentum. ETFs tied to Caterpillar jump after the stock's earnings-driven rally
• Neutral Sentiment: Broader market context — CAT’s move helped lift the Dow and contributed to intraday index strength, but part of the move reflects market positioning around big-cap earnings rather than company-specific news alone. Dow rises 730 points, S&P 500 hits new intraday high
• Neutral Sentiment: Corporate housekeeping — Caterpillar announced its virtual annual shareholder meeting (June 10), which is routine and unlikely to move the share price materially. Caterpillar Announces Virtual 2026 Shareholder Meeting
• Negative Sentiment: Tariff and cost pressure — Management warned of significant tariff costs for 2026 and analysts flagged tariffs as a margin headwind, which could limit upside to margins even as revenue grows. Caterpillar expecting significant tariff costs again for 2026

Caterpillar Company 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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