Edmond DE Rothschild Holding S.A. Makes New Investment in Caterpillar Inc. $CAT

Key Points

• Edmond DE Rothschild Holding S.A. initiated a Caterpillar position in the second quarter, purchasing 4,677 shares valued at approximately $4.98 million. Institutional investors and hedge funds collectively own 70.98% of CAT.
• Caterpillar reported strong quarterly results, with earnings per share of $8.17 versus the $6.22 consensus estimate and revenue of $20.54 billion, up 23.7% year over year. The company also increased its quarterly dividend to $1.63 per share.
• Analyst sentiment remains positive, with a consensus “Moderate Buy” rating and an average price target of $995.52, although the stock has pulled back and CEO Joseph Creed recently sold shares worth about $26.2 million.

Edmond DE Rothschild Holding S.A. bought a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund bought 4,677 shares of the industrial products company's stock, valued at approximately $4,981,000.

Other large investors have also made changes to their positions in the company. Lam Group Inc. bought a new stake in Caterpillar during the first quarter worth $26,000. Frazier Financial Advisors LLC increased its stake in shares of Caterpillar by 220.0% in the 4th quarter. Frazier Financial Advisors LLC now owns 48 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 33 shares during the last quarter. Decker Retirement Planning Inc. raised its holdings in shares of Caterpillar by 440.0% during the 2nd quarter. Decker Retirement Planning Inc. now owns 27 shares of the industrial products company's stock worth $29,000 after buying an additional 22 shares in the last quarter. Cornerstone Financial Management LLC bought a new stake in shares of Caterpillar during the 4th quarter worth $32,000. Finally, Matrix Trust Co boosted its stake in Caterpillar by 93.8% in the second quarter. Matrix Trust Co now owns 31 shares of the industrial products company's stock valued at $33,000 after buying an additional 15 shares in the last quarter. Institutional investors and hedge funds own 70.98% of the company's stock.

Caterpillar Price Performance

CAT stock opened at $778.59 on Wednesday. The company has a fifty day moving average price of $885.31 and a 200-day moving average price of $838.23. The company has a market capitalization of $357.89 billion, a P/E ratio of 33.50, a PEG ratio of 1.38 and a beta of 1.60. Caterpillar Inc. has a 52-week low of $410.52 and a 52-week high of $1,073.46. The company has a debt-to-equity ratio of 1.65, a quick ratio of 0.85 and a current ratio of 1.37.

Caterpillar (NYSE:CAT - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The industrial products company reported $8.17 earnings per share for the quarter, topping the consensus estimate of $6.22 by $1.95. The company had revenue of $20.54 billion for the quarter, compared to analysts' expectations of $19.34 billion. Caterpillar had a net margin of 14.51% and a return on equity of 55.53%. Caterpillar's revenue for the quarter was up 23.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $4.72 earnings per share. As a group, equities analysts expect that Caterpillar Inc. will post 27.35 EPS for the current 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 paid a $1.63 dividend. 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. This represents a $6.52 annualized dividend and a dividend yield of 0.8%. Caterpillar's payout ratio is currently 28.06%.

Insider Buying and Selling at Caterpillar

In other news, CEO Joseph E. Creed sold 32,401 shares of the firm's stock in a transaction dated Friday, August 28th. The stock was sold at an average price of $808.98, for a total transaction of $26,211,760.98. Following the completion of the transaction, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.33% of the company's stock.

Caterpillar News Summary

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Higher earnings expectations: Erste Group Bank raised its FY2026 EPS forecast for Caterpillar to $27.50 from $24.78, above the current analyst consensus of $27.14. The firm maintains a “Hold” rating, so the estimate increase is positive but not a strong bullish endorsement. Erste Group Bank Predicts Stronger Earnings for Caterpillar
• Positive Sentiment: Analyst sentiment remains favorable: Caterpillar has received a consensus “Moderate Buy” rating, while a separate analysis highlighted the stock as a potential beneficiary of improving industrial activity. However, brokerage recommendations can be overly optimistic and may have limited immediate impact. Caterpillar Receives Consensus Rating of Moderate Buy
• Positive Sentiment: Improving durable-goods demand: July durable-goods orders increased 1.1%, supporting the view that a manufacturing recovery could benefit Caterpillar’s equipment demand and broader industrial stocks. 4 Industrial Stocks to Grab on Robust Jump in Durable Goods Orders
• Neutral Sentiment: Investors are watching the pullback: Commentary focused on Caterpillar’s recent decline, suggesting the stock’s technical performance and elevated valuation remain important considerations even after strong quarterly earnings. Why We're Watching the Caterpillar Stock Pullback
• Negative Sentiment: Market-wide pressure: Caterpillar was among the stocks weighing on the Dow as investors reduced exposure to major companies, indicating that broader market sentiment—not just company-specific fundamentals—is contributing to the weakness. NVIDIA Corp., Caterpillar Share Losses Lead Dow's Fall
• Negative Sentiment: CEO insider selling: CEO Joseph E. Creed sold 32,401 shares for approximately $26.2 million, reducing his position by 48.39%. The sale may concern investors, although insider transactions can reflect personal financial planning rather than a change in the company’s outlook. SEC Insider Transaction Filing

Analysts Set New Price Targets

Several research analysts have commented on CAT shares. Citigroup boosted their target price 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. Barclays upped their price objective on shares of Caterpillar from $800.00 to $900.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 6th. Rothschild & Co Redburn increased their price objective 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. Wells Fargo & Company raised their target price on shares of Caterpillar from $1,050.00 to $1,155.00 and gave the company an "overweight" rating in a research report on Tuesday, June 23rd. Finally, Evercore reiterated an "outperform" rating and set a $1,103.00 price target on shares of Caterpillar in a report on Monday, May 11th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eleven have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target 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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