Dearborn Partners LLC Invests $20.29 Million in Caterpillar Inc. $CAT

Key Points

• Dearborn Partners acquired a new $20.29 million stake in Caterpillar, purchasing 28,643 shares during the second quarter. Institutional investors collectively own 70.98% of CAT.
• Caterpillar reported strong quarterly results, with EPS of $8.17 beating estimates by $1.95 and revenue rising 23.7% year over year to $20.54 billion. Growth prospects include FieldAI automation initiatives and a 72% surge in power-generation sales tied to data-center and AI infrastructure demand.
• Analysts remain broadly constructive, with a consensus “Moderate Buy” rating and a $995.52 price target, but elevated valuation and recent insider selling pose risks. CEO Joseph Creed sold approximately $26.2 million of shares, while the quarterly dividend increased to $1.63.

Dearborn Partners LLC purchased a new stake in shares of Caterpillar Inc. (NYSE:CAT - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 28,643 shares of the industrial products company's stock, valued at approximately $20,293,000.

A number of other institutional investors also recently bought and sold shares of the stock. Algert Global LLC purchased a new stake in Caterpillar in the second quarter worth about $306,000. Ames National Corp bought a new stake in Caterpillar during the 2nd quarter valued at approximately $408,000. Capstone Wealth Management Inc. purchased a new position in shares of Caterpillar during the 2nd quarter worth approximately $983,000. Gallo Partners LP bought a new position in shares of Caterpillar in the 2nd quarter worth approximately $2,959,000. Finally, GSG Advisors LLC bought a new position in shares of Caterpillar in the 2nd quarter worth approximately $497,000. 70.98% of the stock is owned by institutional investors.

Key Caterpillar News

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?

Analyst Upgrades and Downgrades

Several research firms recently weighed in on CAT. Sanford C. Bernstein restated a "market perform" rating and set a $1,002.00 price target on shares of Caterpillar in a research report on Wednesday, August 5th. Truist Financial set a $980.00 price objective on Caterpillar in a report on Wednesday, August 5th. Weiss Ratings raised Caterpillar from a "buy (b-)" rating to a "buy (b)" rating in a research report on Wednesday, August 19th. Oppenheimer restated an "outperform" rating and set a $1,118.00 target price on shares of Caterpillar in a report on Tuesday, August 4th. Finally, Wells Fargo & Company upped their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the stock an "overweight" rating in a research report on Tuesday, June 23rd. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and eleven have given a Hold rating to the company's stock. According to MarketBeat.com, Caterpillar presently has an average rating of "Moderate Buy" and a consensus target price of $995.52.

Insider Activity

In related news, CEO Joseph E. Creed sold 32,401 shares of the company's stock in a transaction dated 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 transaction, the chief executive officer owned 34,555 shares in the company, valued at $27,954,303.90. The trade was a 48.39% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.33% of the stock is currently owned by corporate insiders.

Caterpillar Stock Performance

Caterpillar stock opened at $813.51 on Friday. Caterpillar Inc. has a twelve month low of $416.44 and a twelve month high of $1,073.46. The company has a quick ratio of 0.85, a current ratio of 1.37 and a debt-to-equity ratio of 1.65. The company has a market capitalization of $373.95 billion, a P/E ratio of 35.00, a PEG ratio of 1.41 and a beta of 1.60. The stock's 50 day moving average is $872.52 and its 200 day moving average is $838.46.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.22 by $1.95. Caterpillar had a return on equity of 55.53% and a net margin of 14.51%.The business had revenue of $20.54 billion during the quarter, compared to analysts' expectations of $19.34 billion. During the same quarter in the previous year, the business earned $4.72 earnings per share. The firm's quarterly revenue was up 23.7% compared to the same quarter last year. On average, equities research analysts predict that Caterpillar Inc. will post 27.34 earnings per share for the current fiscal year.

Caterpillar Increases Dividend

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

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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