FOCUS Wealth Advisors LLC Makes New Investment in Caterpillar Inc. $CAT

Key Points

• FOCUS Wealth Advisors LLC bought 2,211 Caterpillar shares worth approximately $2.35 million in the second quarter, making CAT 1.1% of its portfolio. Institutional investors collectively own 70.98% of the stock.
• Caterpillar reported record second-quarter results, with revenue up 23.7% year over year to $20.54 billion and EPS of $8.17, well above the $6.22 analyst consensus. Management also raised its 2026 sales-growth outlook and cited a record backlog exceeding $72 billion, supported partly by AI-related data-center and power demand.
• Analysts maintain a consensus “Moderate Buy” rating with a $989 price target, but valuation and insider selling present risks: CAT trades at a high earnings multiple, while insiders sold $32.3 million of stock over the past three months.

FOCUS Wealth Advisors LLC bought a new stake in Caterpillar Inc. (NYSE:CAT - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm bought 2,211 shares of the industrial products company's stock, valued at approximately $2,354,000. Caterpillar accounts for 1.1% of FOCUS Wealth Advisors LLC's investment portfolio, making the stock its 26th biggest holding.

Several other hedge funds also recently made changes to their positions in the company. Diamant Asset Management Inc. increased its stake in shares of Caterpillar by 68,427.2% in the 1st quarter. Diamant Asset Management Inc. now owns 3,140,603 shares of the industrial products company's stock worth $2,224,992,000 after acquiring an additional 3,136,020 shares in the last quarter. Capital International Investors bought a new stake in Caterpillar during the fourth quarter worth about $1,225,317,000. Northwestern Mutual Wealth Management Co. grew its holdings in Caterpillar by 573.1% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 1,504,612 shares of the industrial products company's stock worth $861,947,000 after purchasing an additional 1,281,087 shares during the period. Bank of America Corp DE increased its stake in shares of Caterpillar by 16.0% during the fourth quarter. Bank of America Corp DE now owns 6,738,802 shares of the industrial products company's stock valued at $3,860,457,000 after purchasing an additional 928,974 shares in the last quarter. Finally, Cynosure Group LLC lifted its holdings in shares of Caterpillar by 8,359.6% during the fourth quarter. Cynosure Group LLC now owns 513,754 shares of the industrial products company's stock valued at $294,314,000 after purchasing an additional 507,681 shares during the last quarter. 70.98% of the stock is currently owned by institutional investors.

Key Headlines Impacting Caterpillar

Here are the key news stories impacting Caterpillar this week:

• Positive Sentiment: Record results exceeded expectations: Second-quarter sales and revenue rose 24% year over year to a record $20.5 billion, while adjusted earnings reached $8.17 per share versus analyst estimates near $6.22. The quarter was Caterpillar’s first with revenue above $20 billion. Caterpillar Reports Second-Quarter 2026 Results
• Positive Sentiment: AI infrastructure is driving demand: Caterpillar’s power and energy segment generated approximately $8.2 billion in sales and more segment profit than construction equipment, benefiting from data-center construction and demand for power-generation equipment. Caterpillar Now Makes Almost as Much Selling Power as It Does Selling Construction Equipment
• Positive Sentiment: Outlook and backlog improved: Management raised its 2026 sales-growth forecast to the mid-to-high teens from the prior low-double-digit range. A record backlog above $72 billion, stronger demand across segments and additional power capacity point to continued second-half growth. CAT Q2 Earnings Call Focuses on Backlog and Capacity Growth
• Positive Sentiment: Shareholder returns remain supportive: Caterpillar deployed $2.2 billion for share repurchases and dividends during the quarter. Truist also raised its price target to $1,225 and maintained a Buy rating. Truist price target update
• Neutral Sentiment: The strong report initially prompted a major rally and helped lift the Dow, but the shares have since surrendered part of that advance as investors assess whether AI-related demand can remain durable.
• Negative Sentiment: Valuation risk is significant: CAT trades at more than 30 times forward earnings, with a free-cash-flow yield of roughly 3.2%. That leaves limited margin for execution mistakes or a slowdown in data-center spending, increasing the risk of medium-term mean reversion. Caterpillar: You Can’t Avoid the Cycle, But You Can Price It

Analyst Ratings Changes

Several analysts recently weighed in on the company. HSBC upped their price target on Caterpillar from $850.00 to $1,100.00 in a research note on Tuesday, May 5th. Evercore reiterated an "outperform" rating and set a $1,103.00 price objective on shares of Caterpillar in a research note on Monday, May 11th. Morgan Stanley set a $915.00 target price on Caterpillar and gave the stock an "equal weight" rating in a report on Friday, May 1st. Royal Bank Of Canada raised their price target on Caterpillar from $877.00 to $897.00 and gave the company a "sector perform" rating in a report on Wednesday. Finally, Jefferies Financial Group upped their price target on shares of Caterpillar from $900.00 to $1,045.00 and gave the stock a "buy" rating in a research note on Friday, May 1st. Thirteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to MarketBeat, Caterpillar presently has a consensus rating of "Moderate Buy" and a consensus price target of $989.00.

Insider Transactions at Caterpillar

In other news, insider Anthony D. Fassino sold 16,283 shares of Caterpillar stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $916.80, for a total value of $14,928,254.40. Following the completion of the sale, the insider directly owned 46,041 shares in the company, valued at $42,210,388.80. The trade was a 26.13% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Denise C. Johnson sold 12,605 shares of the firm's stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $907.91, for a total transaction of $11,444,205.55. Following the completion of the sale, the insider owned 49,825 shares in the company, valued at $45,236,615.75. This represents a 20.19% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 35,444 shares of company stock worth $32,335,679 over the last three months. 0.33% of the stock is currently owned by company insiders.

Caterpillar Stock Performance

Shares of CAT opened at $872.02 on Thursday. The company has a market cap of $401.64 billion, a price-to-earnings ratio of 37.52, a P/E/G ratio of 1.72 and a beta of 1.60. The business's fifty day simple moving average is $922.16 and its two-hundred day simple moving average is $817.47. Caterpillar Inc. has a 12 month low of $405.46 and a 12 month high of $1,073.46. The company has a current ratio of 1.37, a quick ratio of 0.81 and a debt-to-equity ratio of 1.65.

Caterpillar (NYSE:CAT - Get Free Report) last announced its quarterly earnings results 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 firm had revenue of $20.54 billion for the quarter, compared to the consensus estimate of $19.34 billion. During the same period in the prior year, the company posted $4.72 earnings per share. The company's quarterly revenue was up 23.7% on a year-over-year basis. Research analysts anticipate that Caterpillar Inc. will post 24.87 earnings per share for the current fiscal 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 issued a dividend of $1.63 per share. This represents a $6.52 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend is Monday, July 20th. This is a boost from Caterpillar's previous quarterly dividend of $1.51. Caterpillar's payout ratio is 32.45%.

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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