Deane Retirement Strategies Inc. Has $2.81 Million Stake in Caterpillar Inc. $CAT

Key Points

• Deane Retirement Strategies cut its Caterpillar stake by 62.7% in the second quarter, selling 4,441 shares and retaining 2,637 shares worth approximately $2.81 million. Institutional investors and hedge funds collectively own 70.98% of CAT.
• Caterpillar’s earnings and AI-related demand remain major growth drivers. The company reported quarterly EPS of $8.17 and revenue of $20.54 billion, both above estimates, while expanding generator capacity to support power-intensive data centers and raising its 2026 sales-growth outlook.
• Analysts remain broadly bullish, but valuation and insider selling present risks. CAT has a “Moderate Buy” consensus rating with a $995.52 average price target, yet trades at about 36 times earnings after a sharp rally; insiders have sold more than $17.4 million of shares over the past three months.

Deane Retirement Strategies Inc. trimmed its holdings in Caterpillar Inc. (NYSE:CAT - Free Report) by 62.7% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 2,637 shares of the industrial products company's stock after selling 4,441 shares during the period. Deane Retirement Strategies Inc.'s holdings in Caterpillar were worth $2,805,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also recently made changes to their positions in the company. Stonebridge Financial Group LLC lifted its holdings in shares of Caterpillar by 0.7% in the second quarter. Stonebridge Financial Group LLC now owns 1,635 shares of the industrial products company's stock valued at $1,741,000 after purchasing an additional 11 shares in the last quarter. Inspirion Wealth Advisors LLC grew its stake in shares of Caterpillar by 1.2% in the 2nd quarter. Inspirion Wealth Advisors LLC now owns 944 shares of the industrial products company's stock worth $936,000 after acquiring an additional 11 shares in the last quarter. Cornerstone Advisory LLC raised its holdings in shares of Caterpillar by 0.7% in the first quarter. Cornerstone Advisory LLC now owns 1,818 shares of the industrial products company's stock valued at $1,288,000 after purchasing an additional 12 shares during the last quarter. Advisory Resource Group lifted its position in shares of Caterpillar by 0.8% during the fourth quarter. Advisory Resource Group now owns 1,632 shares of the industrial products company's stock valued at $935,000 after purchasing an additional 13 shares in the last quarter. Finally, Sunbeam Capital Management LLC lifted its position in shares of Caterpillar by 1.1% during the first quarter. Sunbeam Capital Management LLC now owns 1,164 shares of the industrial products company's stock valued at $825,000 after purchasing an additional 13 shares in the last quarter. 70.98% of the stock is currently owned by institutional investors and hedge funds.

Key Caterpillar News

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.

Insider Transactions at Caterpillar

In other Caterpillar news, CAO William E. Schaupp sold 360 shares of the stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $906.00, for a total value of $326,160.00. Following the sale, the chief accounting officer directly owned 530 shares in the company, valued at $480,180. This represents a 40.45% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Denise C. Johnson sold 12,605 shares of the business's stock in a transaction on 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 transaction, the insider owned 49,825 shares of the company's stock, valued at $45,236,615.75. This trade represents a 20.19% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 19,161 shares of company stock worth $17,407,424. Insiders own 0.33% of the company's stock.

Caterpillar Stock Up 0.3%

CAT opened at $844.52 on Monday. Caterpillar Inc. has a 12 month low of $405.46 and a 12 month high of $1,073.46. The company has a market cap of $388.20 billion, a PE ratio of 36.34, a price-to-earnings-growth ratio of 1.52 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. The company has a 50 day moving average of $921.04 and a 200 day moving average of $820.36.

Caterpillar (NYSE:CAT - Get Free Report) last posted its earnings results on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.22 by $1.95. The firm had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The business's quarterly revenue was up 23.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $4.72 earnings per share. On average, sell-side analysts expect 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. Stockholders of record on Monday, July 20th will be given a dividend of $1.63 per share. This is a boost from Caterpillar's previous quarterly dividend of $1.51. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Monday, July 20th. Caterpillar's dividend payout ratio (DPR) is currently 28.06%.

Wall Street Analyst Weigh In

CAT has been the topic of several recent analyst reports. JPMorgan Chase & Co. lifted their target price on shares of Caterpillar from $1,125.00 to $1,165.00 and gave the stock an "overweight" rating in a research report on Wednesday, June 17th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Caterpillar in a report on Wednesday. Citigroup lifted their price target on Caterpillar from $1,020.00 to $1,100.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Argus upped their price objective on Caterpillar from $820.00 to $990.00 and gave the company a "buy" rating in a research note on Tuesday, May 5th. Finally, HSBC lifted their target price on Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Thirteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $995.52.

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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