Farmers & Merchants Investments Inc. Lowers Stock Position in Caterpillar Inc. $CAT

Key Points

• Farmers & Merchants Investments Inc. cut its Caterpillar stake by 5.1% in the fourth quarter, though it still held 25,136 shares valued at about $14.4 million.
• Caterpillar reported better-than-expected quarterly results, posting EPS of $5.54 versus $4.65 expected and revenue of $17.42 billion versus $16.53 billion expected, with revenue up 22.2% year over year.
• The company also announced a quarterly dividend of $1.51 per share, while recent insider selling and a broader wave of analyst price-target increases suggest mixed sentiment despite strong business momentum.

Farmers & Merchants Investments Inc. reduced its holdings in shares of Caterpillar Inc. (NYSE:CAT - Free Report) by 5.1% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 25,136 shares of the industrial products company's stock after selling 1,345 shares during the period. Farmers & Merchants Investments Inc.'s holdings in Caterpillar were worth $14,400,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also bought and sold shares of CAT. Pacific Point Advisors LLC bought a new position in Caterpillar during the fourth quarter valued at approximately $579,000. Brighton Jones LLC grew its holdings in shares of Caterpillar by 51.5% in the fourth quarter. Brighton Jones LLC now owns 7,409 shares of the industrial products company's stock worth $2,688,000 after purchasing an additional 2,519 shares during the last quarter. United Bank grew its holdings 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 worth $1,585,000 after purchasing an additional 2,125 shares during the last quarter. Schnieders Capital Management LLC. grew its holdings in shares of Caterpillar by 3.9% in the second quarter. Schnieders Capital Management LLC. now owns 9,147 shares of the industrial products company's stock worth $3,551,000 after purchasing an additional 347 shares during the last quarter. Finally, Alliancebernstein L.P. grew its holdings in shares of Caterpillar by 6.5% in 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 last quarter. 70.98% of the stock is currently owned by institutional investors.

Caterpillar Price Performance

Shares of NYSE CAT opened at $896.14 on Friday. Caterpillar Inc. has a 1 year low of $323.31 and a 1 year high of $931.35. The company has a debt-to-equity ratio of 1.64, a current ratio of 1.35 and a quick ratio of 0.81. The company's 50-day moving average is $755.75 and its 200 day moving average is $664.91. The stock has a market capitalization of $412.75 billion, a P/E ratio of 44.61, a P/E/G ratio of 1.80 and a beta of 1.63.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The industrial products company reported $5.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $4.65 by $0.89. Caterpillar had a net margin of 13.33% and a return on equity of 48.21%. The company had revenue of $17.42 billion for the quarter, compared to analysts' expectations of $16.53 billion. During the same quarter in the previous year, the company earned $4.25 earnings per share. Caterpillar's quarterly revenue was up 22.2% on a year-over-year basis. On average, sell-side analysts expect that Caterpillar Inc. will post 24.21 earnings per share for the current year.

Caterpillar Announces Dividend

The firm also recently announced 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 of this dividend is Monday, April 20th. This represents a $6.04 dividend on an annualized basis and a dividend yield of 0.7%. Caterpillar's dividend payout ratio is currently 30.06%.

Insider Transactions at Caterpillar

In related news, insider Lange Bob De sold 24,222 shares of the company's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $922.92, for a total value of $22,354,968.24. Following the transaction, the insider owned 86,029 shares in the company, valued at $79,397,884.68. The trade was a 21.97% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Anthony D. Fassino sold 9,152 shares of the company's stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $926.25, for a total transaction of $8,477,040.00. Following the transaction, the insider owned 46,041 shares in the company, valued at $42,645,476.25. This represents a 16.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders sold 75,734 shares of company stock worth $67,054,613. 0.33% of the stock is owned by insiders.

Caterpillar News Roundup

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Caterpillar’s latest quarterly results were stronger than expected, with EPS and revenue both topping estimates and construction equipment revenue rising sharply, reinforcing the case for solid demand and backlog strength. Caterpillar Reports 38% Boost to Construction Equipment Revenue for Q1 2026
• Positive Sentiment: Several analysts raised price targets on CAT after the better-than-expected quarter, including Argus and HSBC, which is helping support bullish sentiment around the stock. Argus Raises Caterpillar Price Target HSBC Raises Caterpillar Price Target
• Positive Sentiment: Media coverage continues to frame Caterpillar as a beneficiary of AI and data-center power demand, broadening the company’s growth narrative beyond traditional construction and mining markets. Industrial-Strength Rally: Why Caterpillar Is Up 53%...
• Positive Sentiment: Recent commentary points to very long equipment lead times, which suggests sustained demand and potential pricing power ahead. Archrock reaffirms outlook as Caterpillar lead times near 160
• Positive Sentiment: Caterpillar also opened registration for a global innovation challenge, signaling continued investment in workforce development and technology, though this is more of a longer-term strategic positive than an immediate stock driver. Caterpillar Opens Registration for Global Innovation Challenge
• Neutral Sentiment: Some firms raised targets while keeping Neutral ratings, suggesting Wall Street sees upside, but also believes a lot of good news may already be reflected in the stock after its big run. DA Davidson Raises Caterpillar Target Following Better-Than-Expected Quarter
• Neutral Sentiment: Heavy media attention and elevated trading interest may be adding volatility, but these factors do not change Caterpillar’s underlying business fundamentals. Do Options Traders Know Something About Caterpillar Stock?
• Negative Sentiment: Multiple insiders, including the CFO, disclosed sizable stock sales, which can weigh on sentiment and raise concerns about whether the recent rally is prompting profit-taking. CFO insider sale SEC filing Insider sale (Shurman) SEC filing

Analyst Ratings Changes

Several research analysts have recently issued reports on the stock. UBS Group restated a "neutral" rating and issued a $677.00 target price on shares of Caterpillar in a report on Monday, February 2nd. Wall Street Zen upgraded shares of Caterpillar from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Daiwa Securities Group raised their target price on shares of Caterpillar from $790.00 to $900.00 and gave the stock a "neutral" rating in a report on Friday, May 1st. Truist Financial set a $1,043.00 target price on shares of Caterpillar in a report on Friday, May 1st. Finally, Barclays raised their target price on shares of Caterpillar from $700.00 to $800.00 and gave the stock an "equal weight" rating in a report on Friday, May 1st. Sixteen research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, Caterpillar currently has an average rating of "Moderate Buy" and a consensus price target of $890.27.

About Caterpillar

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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